The J.M. Smucker Co. has reported its results for the second quarter of fiscal 2026, for the three months to 31 October 2025.
Net sales were $2.33 billion, up 3% on the same quarter last year.
If the impact of recent divestitures and foreign currency is removed, comparable net sales rose 5%.
Net income per diluted share was $2.26, compared with a loss per share of $0.23 a year ago.
Adjusted earnings per share were $2.10, down 24% from $2.76 in the prior-year period.
Gross profit was $869.9 million, a fall of 2%.
The company pointed to higher commodity costs, weaker volume and mix, tariffs, and the impact of divested businesses as the main reasons.
These were partly offset by higher net pricing and a favourable impact from derivatives.
Operating income rose strongly to $418.5 million, up 147%.
This big increase mainly reflects comparison with a $260.8 million loss on the Voortman business recognised last year.
On an adjusted basis, operating income was $394.3 million, down 20% from $490.6 million a year ago.
Cash flow from operations in the quarter was $346.5 million, compared with $404.2 million last year.
Free cash flow was $280.2 million, down from $317.2 million.
The change mainly reflects more cash tied up in working capital, partly offset by lower capital spending and lower tax payments.
The effective tax rate for the quarter was 24.2%, much lower than 136.7% a year ago, when tax was heavily affected by the Voortman held-for-sale classification.
On an adjusted basis, the tax rate was 24.0%, broadly in line with 24.1% last year.
Performance By Segment
In U.S. Retail Coffee, net sales rose to $848.9 million, up 21%.
Higher pricing across the portfolio added 27 percentage points to net sales, while volume and mix reduced sales by 6 percentage points.
Volume fell for the Folgers and Dunkin’ brands, and grew for Café Bustelo.
Segment profit was $154.3 million, down 24%, due to higher commodity costs, tariffs, weaker volume/mix and higher marketing spend, partly offset by higher net pricing.
In U.S. Retail Frozen Handheld and Spreads, net sales were $461.1 million, down 5%.
Volume and mix reduced sales by 8 percentage points, with declines in peanut butter, fruit spreads and Uncrustables sandwiches.
Higher net pricing, mainly for Uncrustables, added 3 percentage points.
Segment profit was $102.1 million, down 12%, reflecting weaker volumes and higher marketing and other costs, partly offset by higher pricing and lower pre-production costs for the new Uncrustables plant.
In U.S. Retail Pet Foods, net sales were $413.2 million, down 7%.
Volume and mix reduced sales by 8 percentage points, mainly in dog snacks and contract manufacturing linked to divested pet brands.
Net pricing added 1 percentage point.
Segment profit increased to $124.4 million, up 2%, helped by lower costs and higher pricing, partly offset by weaker volume/mix.
In Sweet Baked Snacks, net sales were $256.1 million, down 19%.
The decline reflects the impact of the Voortman divestiture and the sale of some value brands, plus softer demand.
On a comparable basis, net sales fell 3%, with lower volumes in snack cakes, private label products and breakfast items, partly offset by higher donut sales.
Segment profit was $21.8 million, down 69%, due to higher costs, the loss of profit from divested businesses, weaker volume/mix and higher marketing spend.
In International and Away From Home, net sales were $350.8 million, up 9%.
Excluding foreign exchange, net sales rose 10%.
Higher net pricing, especially in coffee, added 9 percentage points, while volume/mix added 1 percentage point, helped by Uncrustables, and partly offset by lower volumes in coffee, peanut butter and dog snacks.
Segment profit was $76.4 million, up 12%, supported by higher pricing, lower SD&A expenses and favourable volume/mix, partly offset by higher costs and tariffs.
Full-year Outlook
For fiscal 2026, J.M. Smucker now expects net sales to grow 3.5–4.5% versus the prior year.
This includes the impact of divestitures worth $134.7 million in lost net sales.
Comparable net sales, which exclude divested businesses and related contract manufacturing, are expected to grow about 5–6%.
This is driven by higher net pricing, partly offset by lower volume/mix.
Adjusted earnings per share for the full year are now forecast in a range of $8.75 to $9.25.
This assumes an adjusted gross margin of about 35%, SD&A expenses in line with last year, net interest expense of about $380 million, and an adjusted tax rate of 23.8%.
Free cash flow for the year is expected to be around $975 million, with capital expenditure of $325 million.
Why It Matters
The results show steady net sales growth, mainly driven by price increases in key categories such as coffee.
At the same time, volumes are under pressure in several U.S. retail businesses, especially coffee, spreads, pet snacks and sweet baked snacks.
For retailers, Smucker remains a key branded partner in coffee, peanut butter, spreads, frozen handheld and pet food, with strong pricing power but mixed category trends.
The maintained full-year outlook and high free cash flow guidance also signal ongoing investment capacity in brands, production and innovation.
Editor’s Note: This article is based on The J.M. Smucker Co. official press release on fiscal 2026 second quarter results, published 25 November 2025,
