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International Flavors (IFF) Down 1.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for International Flavors (IFF - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
International Flavors Q2 Earnings Miss Estimates, Sales Rise Y/Y
International Flavors reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.
Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.
In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations.
Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent.
International Flavors’ Q2 Gross Margin Improves Y/Y
In the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.
Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter.
IFF’s Q2 Segmental Performances
Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.
Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition. Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.
The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter.
International Flavors’ Q2 Cash Flow & Balance Sheet Updates
IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.
International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period.
IFF's 2026 Guidance
For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.
The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.
IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -20.07% due to these changes.
VGM Scores
At this time, International Flavors has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise International Flavors has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
International Flavors is part of the Zacks Chemical - Specialty industry. Over the past month, Ashland (ASH - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
Ashland reported revenues of $497 million in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.02 for the same period compares with $1.04 a year ago.
Ashland is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ashland. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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International Flavors (IFF) Down 1.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for International Flavors (IFF - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
International Flavors Q2 Earnings Miss Estimates, Sales Rise Y/Y
International Flavors reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.
Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.
In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations.
Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent.
International Flavors’ Q2 Gross Margin Improves Y/Y
In the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.
Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter.
IFF’s Q2 Segmental Performances
Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.
Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition. Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.
The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter.
International Flavors’ Q2 Cash Flow & Balance Sheet Updates
IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.
International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period.
IFF's 2026 Guidance
For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.
The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.
IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -20.07% due to these changes.
VGM Scores
At this time, International Flavors has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise International Flavors has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
International Flavors is part of the Zacks Chemical - Specialty industry. Over the past month, Ashland (ASH - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
Ashland reported revenues of $497 million in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.02 for the same period compares with $1.04 a year ago.
Ashland is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ashland. Also, the stock has a VGM Score of D.