Flavors and fragrances maker IFF's Q3 sales beat; low end of 2026 outlook raised

Overview

• Flavors and fragrances maker's Q3 sales rose 4%, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company completed $500 mln share repurchase and raised low end of full-year guidance

Outlook

• IFF raises low end of 2026 sales outlook to $7.5 bln-$7.6 bln from $7.4 bln-$7.6 bln

• Company lifts 2026 adjusted operating EBITDA guidance to $1.55 bln-$1.60 bln from $1.53 bln-$1.60 bln

• IFF expects 2026 comparable currency neutral sales growth of 3%-4%, up from 2%-4% previously

Result Drivers

• VOLUME GROWTH - Co said broad-based volume growth drove sales increases across all divisions, with Taste and Scent segments seeing mid-single digit gains and Health & Biosciences posting low-single digit growth

• SEGMENT PERFORMANCE - Taste and Scent segments delivered strong top- and bottom-line results, while Health & Biosciences improved modestly, according to CEO Erik Fyrwald

• COSTS AND REINVESTMENT - Co said higher costs and reinvestments in Health & Biosciences are expected to impact profitability, particularly in Q4

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for International Flavors & Fragrances Inc. is $100.00, about 5.7% above its November 2 closing price of $94.63

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)