12:10 PM EST, 01/22/2026 (MT Newswires) -- McCormick's ( MKC ) fiscal fourth-quarter profit fell short of Wall Street's estimates amid higher commodity and tariff costs, while the company issued a full-year earnings outlook below market expectations.

For the quarter ended Nov. 30, the spices and seasonings producer's adjusted per-share earnings rose to $0.86 from $0.80 a year earlier, but trailed the FactSet-polled consensus of $0.88. Sales grew 3% to $1.85 billion, while analysts expected $1.84 billion.

The stock was down 8.2% intraday Thursday, and has fallen 10% since the start of the year.

Adjusted gross profit margin fell by 120 basis points in the fourth quarter.

"Fourth-quarter gross margin was pressured by higher than expected inflation across our diverse basket of commodities, and we recognized more tariff costs than previously planned," Chief Executive Brendan Foley said during an earnings call, according to a FactSet transcript.

For fiscal 2026, the company is guiding adjusted EPS between $3.05 and $3.13, below the Street's $3.21 forecast. Full-year sales are projected to rise by 13% to 17%, while analysts are looking for $7.45 billion, indicating an increase of 8.9% year over year.

McCormick ( MKC ) faces elevated expenses for the year, but is partially offsetting these pressures through cost reduction efforts, Foley said.

On an organic basis, sales rose 2% in the fourth quarter, with the consumer segment delivering 3% growth amid pricing actions and higher volume and product mix. Revenue in the flavor solutions segment grew 1%, buoyed by higher prices.

Early this month, McCormick ( MKC ) purchased an additional 25% stake in McCormick ( MKC ) de Mexico for $750 million, increasing its ownership to 75%.

Price: 61.21, Change: -5.35, Percent Change: -8.04