McCormick & Company shares fell 4.75% after the spice maker reported fourth-quarter adjusted earnings of $0.86 per share, missing analyst expectations of $0.87. Revenue, however, beat forecasts at $1.85 billion, up 2.9% from the prior year. The decline reflects investor focus on the earnings shortfall despite the top-line growth.

The company's gross profit margin contracted 130 basis points to 38.9%, pressured by higher commodity costs, tariffs, and capacity investments. Organic sales grew 2.1%, led by a 3.9% increase in the Consumer segment. CEO Brendan M. Foley pointed to volume-led growth and share gains, but acknowledged ongoing headwinds from global trade policies and inflation.

For fiscal 2026, McCormick projected adjusted EPS of $3.05 to $3.13, above the consensus estimate. It expects net sales growth of 13% to 17%, bolstered by its acquisition of a controlling interest in McCormick de Mexico. The company anticipates organic sales growth of just 1% to 3%, signaling a more cautious outlook amid persistent cost pressures.