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/YInternational 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/YIn 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 PerformancesNet 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 UpdatesIFF 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 GuidanceFor 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 ScoresAt 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.
OutlookEstimates 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 PlayerInternational 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.
Ancora Advisors LLC raised its position in International Flavors & Fragrances Inc. (NYSE:IFF – Free Report) by 245.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 176,704 shares of the specialty chemicals company’s stock after purchasing an additional 125,563 shares during the quarter. Ancora Advisors LLC owned 0.07% of International Flavors & Fragrances worth $13,998,000 as of its most recent SEC filing.
Several other institutional investors have also added to or reduced their stakes in IFF. Benjamin Edwards Inc. boosted its holdings in International Flavors & Fragrances by 18.2% during the 2nd quarter. Benjamin Edwards Inc. now owns 6,480 shares of the specialty chemicals company’s stock valued at $513,000 after acquiring an additional 996 shares during the period. Alyeska Investment Group L.P. increased its stake in International Flavors & Fragrances by 7.2% in the second quarter. Alyeska Investment Group L.P. now owns 222,987 shares of the specialty chemicals company’s stock worth $17,665,000 after purchasing an additional 15,028 shares during the period. Greenleaf Trust increased its stake in International Flavors & Fragrances by 6.4% in the second quarter. Greenleaf Trust now owns 14,084 shares of the specialty chemicals company’s stock worth $1,116,000 after purchasing an additional 846 shares during the period. New Mexico Educational Retirement Board lifted its position in shares of International Flavors & Fragrances by 7.6% during the second quarter. New Mexico Educational Retirement Board now owns 12,777 shares of the specialty chemicals company’s stock worth $1,012,000 after purchasing an additional 900 shares during the last quarter. Finally, Mufg Securities Americas Inc. boosted its stake in shares of International Flavors & Fragrances by 8.5% during the second quarter. Mufg Securities Americas Inc. now owns 7,690 shares of the specialty chemicals company’s stock valued at $609,000 after purchasing an additional 604 shares during the period. Institutional investors own 96.02% of the company’s stock.
International Flavors & Fragrances Stock Performance Shares of International Flavors & Fragrances stock opened at $86.37 on Tuesday. The company has a market capitalization of $22.04 billion, a PE ratio of 79.24, a P/E/G ratio of 3.25 and a beta of 0.93. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.72 and a current ratio of 2.06. The company has a 50-day simple moving average of $80.75 and a two-hundred day simple moving average of $76.88. International Flavors & Fragrances Inc. has a one year low of $59.14 and a one year high of $89.32.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share for the quarter, missing analysts’ consensus estimates of $1.07 by ($0.25). International Flavors & Fragrances had a net margin of 2.78% and a return on equity of 7.11%. The firm had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $2.62 billion. During the same quarter in the prior year, the business posted $1.15 earnings per share. The firm’s quarterly revenue was up 1.8% on a year-over-year basis. Research analysts expect that International Flavors & Fragrances Inc. will post 3.08 EPS for the current fiscal year. International Flavors & Fragrances Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, September 18th. This represents a $1.60 dividend on an annualized basis and a yield of 1.9%. International Flavors & Fragrances’s dividend payout ratio is presently 146.79%.
International Flavors & Fragrances announced that its board has approved a share repurchase plan on Tuesday, August 4th that allows the company to repurchase $2.50 billion in shares. This repurchase authorization allows the specialty chemicals company to purchase up to 12.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its stock is undervalued.
Wall Street Analysts Forecast Growth IFF has been the topic of a number of research analyst reports. Citigroup cut their price target on shares of International Flavors & Fragrances from $96.00 to $88.00 and set a “buy” rating on the stock in a report on Wednesday, June 24th. Rothschild & Co Redburn decreased their price objective on shares of International Flavors & Fragrances from $74.00 to $71.00 in a report on Friday, May 8th. Morgan Stanley boosted their price objective on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Benchmark raised their target price on shares of International Flavors & Fragrances from $100.00 to $105.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, Oppenheimer lifted their price target on shares of International Flavors & Fragrances from $88.00 to $90.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Twelve analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $91.40.
Check Out Our Latest Analysis on International Flavors & Fragrances
Insider Buying and Selling at International Flavors & Fragrances In other news, CAO Marc Birenkrant sold 1,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $85.00, for a total transaction of $85,000.00. Following the completion of the sale, the chief accounting officer owned 3,446 shares in the company, valued at approximately $292,910. This represents a 22.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $83.19, for a total value of $475,680.42. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 15,543 shares of company stock worth $1,315,659 over the last three months. Corporate insiders own 1.07% of the company’s stock.
International Flavors & Fragrances Company Profile (Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
See Also Five stocks we like better than International Flavors & Fragrances Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason Want to see what other hedge funds are holding IFF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Flavors & Fragrances Inc. (NYSE:IFF – Free Report).
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IFF (NYSE: IFF) — a global leader in flavors, fragrances and health and biosciences — released new research examining how GLP-1 use is influencing food behaviors among Indian consumers and what those shifts may mean for the future of food and beverage innovation. The study is the latest in IFF’s GLP-1 global consumer insights following the company’s 2025 GLP-1 Consumer Opportunity Outlook.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260824816059/en/
“We are seeing that a change in appetite can lead to a broader change in the relationship people have with food, from how much consumers eat to how they choose, experience and participate in eating occasions,” said Harsch Koshti, regional marketing director, IFF Taste for Greater Asia. “For the food industry, this is a critical opportunity to listen closely to these emerging behaviors and think about how innovation can address these needs.”
The report, "Inside the India GLP-1 Consumer Journey," was unveiled at IFF’s Eat Smart Asia: The GLP-1 Shift symposium in New Delhi. Based on research conducted among GLP-1 users in Delhi, Mumbai and Bengaluru, the study explores how changing appetites are influencing food choices, sensory experiences, shopping habits and social eating occasions. The findings suggest a new consumer mindset is emerging. While participants reported eating smaller portions, they are also becoming more deliberate about what they consume, placing greater emphasis on nutrition, taste, ingredient quality and overall eating satisfaction. Key findings from the report include:
74% say they read food labels more carefully than before starting GLP-1 medication64% experience social eating discomfort at least occasionally69% are choosing coconut water as part of their hydration habitsThe Indian plate is getting smaller, but the desire for food Isn't disappearing
The consumer study points to significant changes in portion sizes across everyday Indian foods. For example, consumers are moving from three to four chapatis to one or two, from five or six idlis to two, and from 2.5 bowls of rice to half a bowl of serving. Reduction in quantity for consumption does not diminish the importance of food. Instead, when consumers eat less, every bite has to work harder — increasing the importance of nutrient density, taste, texture and satisfaction.
Research from IFF’s India GLP-1 consumer journey report also found notable changes in sensory perception, suggesting opportunities for food developers to create products that deliver enhanced nutrition and sensory satisfaction in smaller portions. For example:
90% experience changes in how food tastes or feels50% prefer soft, easy-to-digest texture69% want to balance flavor impactBeyond individual eating habits, the research highlights the social dimensions of changing consumption patterns. Nearly two-thirds of respondents indicated they experience some level of discomfort during social eating occasions. The report’s findings suggest many consumers remain motivated by participation and normalcy, creating opportunities for brands to develop products and experiences that help consumers remain engaged in familiar food occasions while adapting to changing needs.
The GLP-1 consumer is becoming a more deliberate food shopper
The report points to a significant shift in how consumers approach food information — 74% say they read food labels more carefully than before. The scrutiny extends beyond calories to protein, ingredients and natural or preservative-free claims. For food and beverage brands, this raises a broader question about how products communicate nutrition, ingredients and value to consumers who are increasingly deliberate about what makes it onto their plates.
The individual plate is changing faster than the family grocery basket
While personal consumption habits are evolving, household purchasing patterns remain relatively stable. Among respondents:
78% continue buying biscuits for their households71% continue buying packaged sweets and full-fat dairy products63% continue buying fried snacksThis creates a more complex opportunity for food and beverage brands than simply developing “GLP-1-friendly” products, particularly in a market where food choices remain deeply embedded in household and family routines.
Hydration is becoming more intentional
The shift extends beyond solid food. The study found that 74% view hydration as a daily wellness goal, with many gravitating toward coconut water and electrolyte-based beverages.
The trend highlights growing interest in products that combine functionality, hydration and sensory appeal as consumers become more intentional about their beverage choices.
Implications for food and beverage innovation
The research further highlights that the opportunity surrounding GLP-1 extends beyond weight management. As consumer expectations around appetite, portions and sensory experiences continue to evolve, food and beverage companies may need to reconsider how they deliver nutrition, enjoyment and value across eating occasions.
IFF’s report, “Inside the India GLP-1 Consumer Journey,” provides an early perspective on changing consumer behaviors and emerging opportunities across food, beverage and sensory innovation.
Access the full report here.
The findings are based on a consumer insights study conducted among GLP-1 users in Delhi, Mumbai and Bengaluru and are intended for informational purposes only. They do not constitute medical, nutritional or healthcare advice.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent and health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love — advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
NEW DELHI--(BUSINESS WIRE)--IFF (NYSE: IFF) — a global leader in flavors, fragrances and health and biosciences — released new research examining how GLP-1 use is influencing food behaviors among Indian consumers and what those shifts may mean for the future of food and beverage innovation. The study is the latest in IFF's GLP-1 global consumer insights following the company's 2025 GLP-1 Consumer Opportunity Outlook. “We are seeing that a change in appetite can lead to a broader change in the r.
Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of International Flavors & Fragrances Inc. (NYSE:IFF – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 182,640 shares of the specialty chemicals company’s stock, valued at approximately $14,469,000. Barrow Hanley Mewhinney & Strauss LLC owned about 0.07% of International Flavors & Fragrances at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also modified their holdings of the business. BlackRock Inc. bought a new stake in International Flavors & Fragrances during the second quarter worth approximately $1,835,955,000. Invesco Ltd. increased its holdings in shares of International Flavors & Fragrances by 131.3% during the 3rd quarter. Invesco Ltd. now owns 7,167,176 shares of the specialty chemicals company’s stock worth $441,068,000 after purchasing an additional 4,069,075 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in International Flavors & Fragrances in the 4th quarter valued at approximately $211,703,000. Ameriprise Financial Inc. raised its stake in shares of International Flavors & Fragrances by 1,842.0% in the second quarter. Ameriprise Financial Inc. now owns 2,491,606 shares of the specialty chemicals company’s stock valued at $183,264,000 after purchasing an additional 2,363,307 shares in the last quarter. Finally, First Eagle Investment Management LLC lifted its holdings in shares of International Flavors & Fragrances by 27.5% during the 4th quarter. First Eagle Investment Management LLC now owns 8,831,668 shares of the specialty chemicals company’s stock worth $595,166,000 after acquiring an additional 1,904,598 shares during the period. Institutional investors and hedge funds own 96.02% of the company’s stock.
Insider Buying and Selling at International Flavors & Fragrances In other news, Director Paul J. Fribourg purchased 260,000 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was purchased at an average cost of $74.28 per share, with a total value of $19,312,800.00. Following the purchase, the director owned 2,682,730 shares in the company, valued at approximately $199,273,184.40. This trade represents a 10.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $83.19, for a total transaction of $475,680.42. The disclosure for this sale is available in the SEC filing. Insiders have sold 15,543 shares of company stock worth $1,315,659 over the last quarter. Company insiders own 1.07% of the company’s stock.
International Flavors & Fragrances Stock Performance Shares of IFF stock opened at $84.31 on Monday. International Flavors & Fragrances Inc. has a 12 month low of $59.14 and a 12 month high of $89.32. The stock has a market capitalization of $21.51 billion, a P/E ratio of 77.35, a PEG ratio of 3.12 and a beta of 0.93. The company has a current ratio of 2.06, a quick ratio of 1.72 and a debt-to-equity ratio of 0.34. The firm’s 50 day moving average is $79.56 and its 200 day moving average is $76.34. International Flavors & Fragrances (NYSE:IFF – Get Free Report) last announced its earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.25). International Flavors & Fragrances had a return on equity of 7.11% and a net margin of 2.78%.The company had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $2.62 billion. During the same quarter last year, the firm posted $1.15 earnings per share. The firm’s revenue was up 1.8% on a year-over-year basis. On average, sell-side analysts anticipate that International Flavors & Fragrances Inc. will post 3.08 earnings per share for the current year.
International Flavors & Fragrances declared that its Board of Directors has authorized a stock buyback program on Tuesday, August 4th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the specialty chemicals company to reacquire up to 12.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
International Flavors & Fragrances Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a dividend of $0.40 per share. The ex-dividend date is Friday, September 18th. This represents a $1.60 dividend on an annualized basis and a yield of 1.9%. International Flavors & Fragrances’s payout ratio is currently 146.79%.
Here are the key news stories impacting International Flavors & Fragrances this week:
Positive Sentiment: IFF is trading above its 50-day and 200-day moving averages and near its 52-week high, signaling continued investor momentum even though the latest reports do not identify a new fundamental catalyst. Positive Sentiment: The company authorized a $2.5 billion share-repurchase program, potentially covering up to 12.1% of outstanding shares. The buyback may support earnings per share and suggests management believes the stock is undervalued. Positive Sentiment: Institutional ownership remains high at approximately 96%, while several large investors—including BlackRock, Invesco and Ameriprise—recently increased or initiated positions. IFF also declared a quarterly dividend of $0.40 per share. Neutral Sentiment: CEO Erik Fyrwald is scheduled to participate in a Barclays Global Consumer Conference fireside chat on September 10. Investors may look for updates on strategy, operating performance and capital allocation, but no new guidance has been provided. IFF Barclays conference announcement Negative Sentiment: Zacks Research repeatedly lowered its EPS forecasts and maintained a “Strong Sell” rating. FY2026 EPS was cut to $3.14 from $4.45, FY2027 to $3.71 from $4.81, and FY2028 to $4.31 from $5.21. The revisions indicate expectations for weaker profitability over multiple years. Negative Sentiment: The largest near-term reduction was for Q3 2026 EPS, lowered to $0.67 from $1.14. Estimates for Q4 2026 and each quarter of 2027 were also reduced, raising concerns about sustained earnings pressure and IFF’s elevated valuation. Negative Sentiment: An insider sold 5,718 shares for approximately $476,000 at an average price of $83.19. One transaction is not conclusive, but it provides a modest negative signal for investors monitoring insider confidence. IFF insider sale report Negative Sentiment: IFF’s latest reported quarter missed analyst expectations, with EPS of $0.82 versus $1.07 expected and revenue of $1.95 billion versus $2.62 billion expected, reinforcing concerns behind the estimate cuts. Analyst Ratings Changes Several brokerages have recently commented on IFF. Oppenheimer boosted their target price on International Flavors & Fragrances from $88.00 to $90.00 and gave the stock an “outperform” rating in a report on Thursday, May 7th. Vertical Research downgraded shares of International Flavors & Fragrances from a “buy” rating to a “hold” rating and set a $93.00 price objective on the stock. in a report on Thursday, August 6th. Citigroup cut their target price on shares of International Flavors & Fragrances from $96.00 to $88.00 and set a “buy” rating for the company in a research note on Wednesday, June 24th. Berenberg Bank lifted their price objective on shares of International Flavors & Fragrances from $83.00 to $84.80 and gave the stock a “hold” rating in a research note on Thursday, May 7th. Finally, UBS Group boosted their price target on International Flavors & Fragrances from $84.00 to $91.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $92.16.
Read Our Latest Stock Report on IFF
About International Flavors & Fragrances (Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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Bank of New York Mellon Corp purchased a new stake in shares of International Flavors & Fragrances Inc. (NYSE:IFF – Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 1,550,018 shares of the specialty chemicals company’s stock, valued at approximately $122,792,000. Bank of New York Mellon Corp owned approximately 0.61% of International Flavors & Fragrances at the end of the most recent quarter.
A number of other large investors have also recently made changes to their positions in the stock. Tema ETFs LLC increased its holdings in shares of International Flavors & Fragrances by 9.4% in the second quarter. Tema ETFs LLC now owns 5,078 shares of the specialty chemicals company’s stock valued at $402,000 after purchasing an additional 435 shares during the period. Peoples Bank KS increased its holdings in International Flavors & Fragrances by 5.1% in the 2nd quarter. Peoples Bank KS now owns 4,686 shares of the specialty chemicals company’s stock worth $371,000 after buying an additional 228 shares during the period. Contravisory Investment Management Inc. purchased a new position in International Flavors & Fragrances during the 2nd quarter worth approximately $1,112,000. HF Advisory Group LLC raised its position in International Flavors & Fragrances by 1.3% during the 2nd quarter. HF Advisory Group LLC now owns 17,847 shares of the specialty chemicals company’s stock worth $1,414,000 after buying an additional 233 shares during the last quarter. Finally, Everhart Financial Group Inc. acquired a new stake in International Flavors & Fragrances during the 2nd quarter valued at approximately $208,000. 96.02% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several research analysts recently issued reports on IFF shares. Morgan Stanley raised their target price on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the stock an “overweight” rating in a report on Wednesday, July 1st. BNP Paribas Exane upped their price target on shares of International Flavors & Fragrances from $85.00 to $95.00 in a report on Thursday, May 7th. Rothschild & Co Redburn cut their price target on International Flavors & Fragrances from $74.00 to $71.00 in a research report on Friday, May 8th. Benchmark lifted their price objective on International Flavors & Fragrances from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on International Flavors & Fragrances from $95.00 to $90.00 and set a “buy” rating for the company in a report on Monday, June 1st. Thirteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $92.16.
View Our Latest Stock Report on International Flavors & Fragrances Insider Transactions at International Flavors & Fragrances In related news, EVP Michael Deveau sold 8,825 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $85.55, for a total value of $754,978.75. Following the completion of the transaction, the executive vice president directly owned 5,199 shares of the company’s stock, valued at approximately $444,774.45. This represents a 62.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider De Mendonca Ana Paula Teles sold 5,718 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $83.19, for a total value of $475,680.42. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,543 shares of company stock valued at $1,315,659 in the last 90 days. Corporate insiders own 1.07% of the company’s stock.
Trending Headlines about International Flavors & Fragrances Here are the key news stories impacting International Flavors & Fragrances this week:
Positive Sentiment: IFF is trading above its 50-day and 200-day moving averages and near its 52-week high, signaling continued investor momentum even though the latest reports do not identify a new fundamental catalyst. Positive Sentiment: The company authorized a $2.5 billion share-repurchase program, potentially covering up to 12.1% of outstanding shares. The buyback may support earnings per share and suggests management believes the stock is undervalued. Positive Sentiment: Institutional ownership remains high at approximately 96%, while several large investors—including BlackRock, Invesco and Ameriprise—recently increased or initiated positions. IFF also declared a quarterly dividend of $0.40 per share. Neutral Sentiment: CEO Erik Fyrwald is scheduled to participate in a Barclays Global Consumer Conference fireside chat on September 10. Investors may look for updates on strategy, operating performance and capital allocation, but no new guidance has been provided. IFF Barclays conference announcement Negative Sentiment: Zacks Research repeatedly lowered its EPS forecasts and maintained a “Strong Sell” rating. FY2026 EPS was cut to $3.14 from $4.45, FY2027 to $3.71 from $4.81, and FY2028 to $4.31 from $5.21. The revisions indicate expectations for weaker profitability over multiple years. Negative Sentiment: The largest near-term reduction was for Q3 2026 EPS, lowered to $0.67 from $1.14. Estimates for Q4 2026 and each quarter of 2027 were also reduced, raising concerns about sustained earnings pressure and IFF’s elevated valuation. Negative Sentiment: An insider sold 5,718 shares for approximately $476,000 at an average price of $83.19. One transaction is not conclusive, but it provides a modest negative signal for investors monitoring insider confidence. IFF insider sale report Negative Sentiment: IFF’s latest reported quarter missed analyst expectations, with EPS of $0.82 versus $1.07 expected and revenue of $1.95 billion versus $2.62 billion expected, reinforcing concerns behind the estimate cuts. International Flavors & Fragrances Price Performance International Flavors & Fragrances stock opened at $84.31 on Monday. The stock has a market capitalization of $21.51 billion, a P/E ratio of 77.35, a P/E/G ratio of 3.12 and a beta of 0.93. The company’s fifty day moving average price is $79.56 and its 200 day moving average price is $76.34. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.72 and a current ratio of 2.06. International Flavors & Fragrances Inc. has a 1 year low of $59.14 and a 1 year high of $89.32.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.25). International Flavors & Fragrances had a net margin of 2.78% and a return on equity of 7.11%. The company had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $2.62 billion. During the same period in the previous year, the business earned $1.15 earnings per share. The business’s revenue for the quarter was up 1.8% on a year-over-year basis. As a group, equities research analysts anticipate that International Flavors & Fragrances Inc. will post 3.08 earnings per share for the current fiscal year.
International Flavors & Fragrances Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, September 18th. International Flavors & Fragrances’s payout ratio is 146.79%.
International Flavors & Fragrances declared that its board has authorized a stock buyback program on Tuesday, August 4th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the specialty chemicals company to repurchase up to 12.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.
International Flavors & Fragrances Company Profile (Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) today announced that Chief Executive Officer Erik Fyrwald will participate in a fireside chat at the Barclays Global Consumer Conference on Thursday, Sept. 10, 2026 at 945 a.m. ET.
Investors may access the live webcast on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, and health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
Have you assessed how the international operations of International Flavors (IFF - Free Report) performed in the quarter ended June 2026? For this ingredients producer for food, cosmetics and consumer products industries, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into IFF's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.95 billion, showing decrease of 29.3%. We will now explore the breakdown of IFF's overseas revenue to assess the impact of its international operations.
A Closer Look at IFF's Revenue Streams AbroadEurope, Africa and Middle East accounted for 36.6% of the company's total revenue during the quarter, translating to $715 million. Revenues from this region represented a surprise of -23.68%, with Wall Street analysts collectively expecting $936.88 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Africa and Middle East contributed $949 million (34.6%) and $953 million (34.5%) to the total revenue, respectively.
During the quarter, Latin America contributed $257 million in revenue, making up 13.2% of the total revenue. When compared to the consensus estimate of $343.55 million, this meant a surprise of -25.19%. Looking back, Latin America contributed $348 million, or 12.7%, in the previous quarter, and $361 million, or 13.1%, in the same quarter of the previous year.
Of the total revenue, $501 million came from Greater Asia during the last fiscal quarter, accounting for 25.6%. This represented a surprise of -22.64% as analysts had expected the region to contribute $647.62 million to the total revenue. In comparison, the region contributed $656 million, or 23.9%, and $647 million, or 23.4%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International MarketsThe current fiscal quarter's total revenue for International Flavors, as projected by Wall Street analysts, is expected to reach $1.92 billion, reflecting a decline of 28.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe, Africa and Middle East is anticipated to contribute 49.1% or $942.88 million, Latin America 18% or $345.76 million and Greater Asia 33.9% or $651.77 million.
For the entire year, the company's total revenue is forecasted to be $7.58 billion, which is a reduction of 30.4% from the previous year. The revenue contributions from different regions are expected as follows: Europe, Africa and Middle East will contribute 49.3% ($3.73 billion), Latin America 18.1% ($1.37 billion) and Greater Asia 34.1% ($2.58 billion) to the total revenue.
The Bottom LineInternational Flavors' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
International Flavors currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Review of International Flavors' Recent Stock Market PerformanceOver the past month, the stock has gained 10.8% versus the Zacks S&P 500 composite's 3.4% increase. The Zacks Basic Materials sector, of which International Flavors is a part, has risen 9.6% over the same period. The company's shares have increased 17.5% over the past three months compared to the S&P 500's 6% increase. Over the same period, the sector has risen 1.8%
International Flavors & Fragrances Inc. (NYSE:IFF – Get Free Report) EVP Michael Deveau sold 8,825 shares of the company’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $85.55, for a total value of $754,978.75. Following the transaction, the executive vice president owned 5,199 shares of the company’s stock, valued at approximately $444,774.45. The trade was a 62.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.
International Flavors & Fragrances Stock Performance IFF stock opened at $85.80 on Monday. International Flavors & Fragrances Inc. has a 1 year low of $59.14 and a 1 year high of $89.32. The stock has a market capitalization of $21.89 billion, a price-to-earnings ratio of 78.72, a PEG ratio of 2.65 and a beta of 0.93. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.72 and a current ratio of 2.06. The stock’s fifty day moving average is $77.77 and its two-hundred day moving average is $75.50.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 EPS for the quarter, missing the consensus estimate of $1.07 by ($0.25). The firm had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $2.62 billion. International Flavors & Fragrances had a return on equity of 7.11% and a net margin of 2.78%.The firm’s revenue was up 1.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.15 EPS. On average, research analysts predict that International Flavors & Fragrances Inc. will post 3.69 EPS for the current year.
International Flavors & Fragrances Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a $0.40 dividend. The ex-dividend date is Friday, September 18th. This represents a $1.60 annualized dividend and a dividend yield of 1.9%. International Flavors & Fragrances’s dividend payout ratio (DPR) is presently 146.79%.
International Flavors & Fragrances announced that its board has authorized a share buyback plan on Tuesday, August 4th that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the specialty chemicals company to reacquire up to 12.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.
Wall Street Analyst Weigh In Several analysts have weighed in on IFF shares. Barclays lifted their target price on International Flavors & Fragrances from $90.00 to $96.00 and gave the company an “overweight” rating in a research note on Friday. Berenberg Bank raised their price target on International Flavors & Fragrances from $83.00 to $84.80 and gave the company a “hold” rating in a report on Thursday, May 7th. Vertical Research downgraded shares of International Flavors & Fragrances from a “buy” rating to a “hold” rating and set a $93.00 price objective for the company. in a report on Thursday. Morgan Stanley increased their target price on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of International Flavors & Fragrances in a research report on Monday, August 3rd. Thirteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $92.16.
Get Our Latest Report on IFF
Trending Headlines about International Flavors & Fragrances Here are the key news stories impacting International Flavors & Fragrances this week:
Positive Sentiment: Barclays raised its price target from $90 to $96 and upgraded its stance to “overweight,” implying approximately 12% upside from the reference price. The move signals improving confidence in IFF’s earnings outlook and restructuring efforts. Benzinga analyst update Positive Sentiment: Benchmark increased its target from $100 to $105 and maintained a “buy” rating, representing roughly 22% potential upside. This is the most bullish valuation among the recent analyst actions. Benzinga analyst update Positive Sentiment: IFF plans to repurchase up to $2.5 billion of its shares, which could support per-share earnings and signal that management views the stock as attractively valued. IFF share buyback report Neutral Sentiment: UBS raised its price target from $84 to $91 but retained a “neutral” rating. The higher valuation provides modest upside, while the unchanged rating suggests the firm sees balanced potential and risks. Benzinga analyst update Negative Sentiment: Vertical Research downgraded IFF from “buy” to “hold,” despite assigning a $93 price target. The downgrade may limit enthusiasm because it reflects less conviction in near-term upside. Finviz analyst update Negative Sentiment: Second-quarter results were mixed to weak: adjusted earnings per share came in at $0.82 versus the $1.07 consensus, while revenue of $1.95 billion missed estimates of $2.62 billion. IFF also lowered its full-year sales outlook, overshadowing modest year-over-year revenue growth. International Flavors Q2 earnings snapshot Institutional Inflows and Outflows Large investors have recently bought and sold shares of the business. Wealthfront Advisers LLC acquired a new stake in International Flavors & Fragrances during the 2nd quarter worth about $1,944,000. Alpine Woods Capital Investors LLC purchased a new stake in shares of International Flavors & Fragrances in the second quarter worth approximately $3,151,000. Meeder Advisory Services Inc. purchased a new stake in shares of International Flavors & Fragrances in the second quarter worth approximately $220,000. Citizens Financial Group Inc. RI acquired a new stake in shares of International Flavors & Fragrances during the second quarter worth approximately $208,000. Finally, BlackRock Inc. purchased a new position in International Flavors & Fragrances during the second quarter valued at approximately $1,835,955,000. 96.02% of the stock is owned by institutional investors and hedge funds.
International Flavors & Fragrances Company Profile (Get Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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These 5 stocks have unique competitive edge and room to runInternational Flavors & Fragrances NYSE: IFF reported higher second-quarter sales and earnings across its continuing operations, supported by volume growth, productivity gains and improved working capital management, while outlining capital-allocation plans tied to the pending sale of its Food Ingredients business.
Chief Executive Officer Erik Fyrwald said the company generated volume growth across its businesses and improved free cash flow during the first half of 2026. On a continuing-operations basis, first-half sales rose 4% and EBITDA increased 8%. Free cash flow totaled $378 million, up $284 million from the prior-year period.
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Hidden gems: 3 undervalued stocks with a unique competitive edge“IFF delivered volume growth across the board, disciplined margin execution, and robust free cash flow generation,” Fyrwald said.
Second-Quarter Results Led by Scent Growth For the second quarter, IFF reported continuing-operations revenue of just under $2 billion, up about 6% on a comparable currency-neutral basis. Adjusted operating EBITDA rose 6% to $408 million.
14 best consumer staples dividend stocksMichael DeVeau, IFF’s CFO, said growth was volume-driven, reflecting new customer wins and higher sales within existing business. He noted that U.S. tariff refunds, netted against customer pass-throughs, benefited results, while higher incentive compensation accruals tied to the company’s first-half performance weighed on year-over-year EBITDA growth. Excluding those factors, he said underlying EBITDA growth would have been stronger.
Taste: Sales increased 4% to $688 million, led by double-digit growth in Asia. EBITDA rose 6% to $124 million, supported by volume growth and favorable net pricing. Health & Biosciences: Sales rose 5% to $601 million, with growth across businesses and notable gains in Grain Processing, Food Biosciences and Animal Nutrition. EBITDA increased 6% to $150 million, primarily due to volume leverage. Scent: Sales grew 8% to $665 million and EBITDA increased 5% to $134 million. Fragrance Ingredients grew more than 20%, while Consumer Fragrances posted high-single-digit growth. DeVeau said Fragrance Ingredients benefited partly from an easier comparison, as the business had declined by more than 10% in the year-earlier period. He also cited the company’s use of its synthetic fragrance portfolio to capture sales amid supply-chain disruptions and higher Brent crude prices. The company expects that growth to normalize in the second half as the mix shifts toward higher-value ingredients.
Fine Fragrances increased slightly in the quarter despite the Middle East conflict, compared with IFF’s prior expectation for a mid-single-digit decline. However, the company expects softer Fine Fragrances performance in the third quarter, partly because the business grew 20% in the comparable quarter last year, before anticipating recovery in the fourth quarter.
Food Ingredients Sale and Stranded-Cost Plan IFF is proceeding with its agreement to sell Food Ingredients to CVC Capital Partners in a transaction valuing the business at about $4.3 billion, or roughly 10 times enterprise value to EBITDA. The deal is expected to close by the end of the second quarter of 2027, and IFF plans to retain a 10% ownership stake in the business.
Fyrwald said the sale will leave IFF focused on its Taste, Scent and Health & Biosciences businesses, which the company views as higher-growth, higher-margin operations. He told analysts that IFF has no significant divestitures remaining and plans to focus on scaling the three businesses organically and through bolt-on acquisitions.
The transaction will leave approximately $100 million of corporate and functional costs at IFF that had previously been allocated to Food Ingredients. These costs are now spread across the remaining segments and are temporarily pressuring business-unit margins.
Management said it has begun a remediation plan and expects to eliminate about two-thirds of the stranded costs in the first 12 months after the transaction closes, with the remainder removed during the second full year. The plan includes redesigning processes, simplifying systems, rationalizing activities, reviewing third-party contracts and aligning the remaining company’s cost structure to its needs.
IFF also announced an agreement to sell a portfolio of non-strategic botanical extracts, vitamins and minerals, and food enhancement products. The portfolio, primarily within Health & Biosciences and Taste, has about $170 million in annual sales and a mid-single-digit EBITDA margin. IFF expects about $75 million in proceeds and anticipates closing that transaction in the fourth quarter of 2026.
Capital Allocation and Cash Flow The company plans to use more than $1 billion of Food Ingredients sale proceeds to reduce debt, targeting net debt to credit-adjusted EBITDA of 2.0 times to 2.5 times by the end of 2027. IFF ended the first half of 2026 at 2.5 times leverage, while gross debt had declined about $5.7 billion.
The board authorized a $2.5 billion share-repurchase program, including approximately $400 million remaining under a prior authorization. IFF expects to repurchase about $500 million of shares in the second half of 2026 before the Food Ingredients transaction closes, with the remaining authorization targeted for completion by the end of 2027.
Cash flow from operations reached $679 million in the first half, while capital expenditures totaled $301 million, or about 5% of sales. DeVeau said IFF expects transaction-related working-capital headwinds in the second half, potentially amounting to a couple hundred million dollars, related to separating Food Ingredients. Despite those headwinds, the company expects 2026 free cash flow to exceed its 2025 result.
For the remaining portfolio, management said it expects capital expenditures to run in a 5% to 6% range of sales, likely toward the high end over the next one to two years due to planned high-return investments.
2026 Outlook IFF introduced full-year guidance on a continuing-operations basis following the Food Ingredients reclassification. The company expects 2026 sales of $7.4 billion to $7.6 billion, representing growth of 2% to 4%, and EBITDA of $1.53 billion to approximately $1.6 billion, representing growth of 4% to 8%.
DeVeau said the guidance implies second-half sales growth of 0% to 4% and EBITDA growth of 4% to 8%. The higher low end of the full-year ranges primarily reflects the company’s stronger first-half performance, he said, while the range continues to account for macroeconomic uncertainty and Middle East volatility.
Second-quarter growth was almost entirely volume-driven, according to DeVeau. For the second half, IFF expects volumes to remain the primary sales driver, with pricing providing only a modest contribution. Input costs for raw materials, energy and logistics are expected to rise modestly, with Scent most affected. The company is pursuing surcharges and other pricing actions, though management said there can be timing lags, particularly in Scent.
About International Flavors & Fragrances (NYSE:IFF)International Flavors & Fragrances Inc NYSE: IFF is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF's research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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On August 05, 2026, International Flavors and Fragrances Inc (IFF) shares rose by 8.9%, bringing the current price to $88.07. Over the past year, the stock has ex
Key Takeaways IFF missed Q2 earnings estimates as sales rose 1.8% y/y, with 6% comparable currency-neutral sales growth.International Flavors expects 2026 continuing sales of $7.4-$7.6B and EBITDA of $1.53-$1.60B.IFF authorized a $2.5B share repurchase tied to its Food Ingredients divestiture timeline. International Flavors & Fragrances Inc. (IFF - Free Report) 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 PerformancesNet sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. The figure surpassed our estimate of $647 million. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. Our estimate for the segment’s adjusted EBITDA was $127 million. 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. The figure matched our estimate. 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. Our estimate for the segment’s adjusted EBITDA was $154 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. Our estimate was $624 million. The upside was driven by double-digit growth in Fragrance Ingredients and high-single-digit growth in Consumer Fragrance. 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. Our model had projected EBITDA of $131 million. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter.
International Flavors’ Q2 Cash Flow & Balance Sheet UpdatesIFF 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 GuidanceFor 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.
International Flavors’ Zacks RankIFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
IFF Stock’s Price PerformanceIn the past year, the company’s shares have gained 17.3% compared with the industry’s growth of 3.7%.
Image Source: Zacks Investment Research
Performance of Other Chemical - Specialty Stocks in Q2Linde plc (LIN - Free Report) reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.
Linde’s sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.
PPG Industries, Inc. (PPG - Free Report) reported adjusted earnings of $2.23 per share in the second quarter of 2026, up 0.5% year over year and missed the Zacks Consensus Estimate of $2.26.
PPG Industries’ sales rose 7.2% year over year to $4.5 billion and topped the consensus mark of $4.36 billion by 3.1%. Organic sales increased 4%, aided equally by higher volumes and selling prices.
Ecolab Inc. (ECL - Free Report) reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Ecolab sales rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines.
For the quarter ended June 2026, International Flavors (IFF - Free Report) reported revenue of $1.95 billion, down 29.3% over the same period last year. EPS came in at $0.82, compared to $1.15 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.68 billion, representing a surprise of -27.16%. The company delivered an EPS surprise of -28.07%, with the consensus EPS estimate being $1.14.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how International Flavors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Health & Biosciences: $601 million compared to the $601.59 million average estimate based on four analysts. The reported number represents a change of +4.2% year over year.Net Sales- Scent: $665 million versus the four-analyst average estimate of $622.95 million. The reported number represents a year-over-year change of +10.3%.Net Sales- Taste: $688 million versus $648.5 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9% change.Adjusted Operating EBITDA- Health & Biosciences: $150 million versus $158.41 million estimated by four analysts on average.Adjusted Operating EBITDA- Taste: $124 million compared to the $131.72 million average estimate based on four analysts.Adjusted Operating EBITDA- Scent: $134 million versus the four-analyst average estimate of $128.67 million.View all Key Company Metrics for International Flavors here>>>
Shares of International Flavors have returned -2.7% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
International Flavors (IFF - Free Report) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -28.07%. A quarter ago, it was expected that this ingredients producer for food, cosmetics and consumer products industries would post earnings of $1.08 per share when it actually produced earnings of $1.25, delivering a surprise of +15.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
International Flavors, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $1.95 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 27.16%. This compares to year-ago revenues of $2.76 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
International Flavors shares have added about 19.6% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for International Flavors?While International Flavors has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for International Flavors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.14 on $2.73 billion in revenues for the coming quarter and $4.52 on $10.75 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Green Plains Renewable Energy (GPRE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This ethanol production, marketing and commodities company is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +258.5%. The consensus EPS estimate for the quarter has been revised 11.3% lower over the last 30 days to the current level.
Green Plains Renewable Energy's revenues are expected to be $528.9 million, down 4.3% from the year-ago quarter.
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) reported financial results for the second quarter ended June 30, 2026. Results are presented on a continuing operations basis, excluding the Food Ingredients business and other minor perimeter adjustments (the “Food Ingredients disposal group”), and the Soy Crush, Concentrates, and Lecithin businesses (the “SCL disposal group”). The Food Ingredients disposal group and the SCL disposal group are reported as discontinued operations.
Second Quarter 2026 Consolidated Summary of Results, on a continuing operations basis1:
Reported
(GAAP)
Adjusted
(Non-GAAP)2
Sales
Income Before Taxes
EPS
Operating EBITDA
Operating EBITDA Margin
EPS ex Amortization
$2.0 B
$64 M
$0.13
$408 M
20.9%
$0.82
First Six Months 2026 Consolidated Summary of Results, on a continuing operations basis1:
Reported
(GAAP)
Adjusted
(Non-GAAP)2
Sales
Income Before Taxes
EPS
Operating EBITDA
Operating EBITDA Margin
EPS ex Amortization
$3.9 B
$260 M
$0.73
$841 M
21.8%
$1.74
Management Commentary
“IFF delivered a strong first half of 2026 on a continuing operations basis,” said Erik Fyrwald, CEO of IFF. “Performance was driven by volume growth, disciplined margin execution and robust free cash flow generation. These results reflect the strength of our commercial and innovation pipelines and the actions underway to improve efficiency and cash flow across the company.”
“This quarter marked a defining step in our portfolio transformation with the announced agreement to divest Food Ingredients. The transaction sharpens IFF's focus on Taste, Scent, and Health & Biosciences, creating a simpler, higher-growth, higher-margin company with enhanced cash generation. As part of this transformation, we are taking decisive action to eliminate related stranded costs and will execute with urgency.”
“We are also providing greater clarity on our intended use of proceeds from the divestiture of the Food Ingredients business through a sequenced capital allocation framework. Our objective is to maintain a strong balance sheet and financial flexibility to deliver our growth ambitions with leverage in the range of 2.0x to 2.5x net debt to EBITDA. Therefore we will apply net proceeds to reduce outstanding debt by over $1 billion. The Board has also authorized an enhanced $2.5 billion share repurchase program, beginning with $500 million to be executed in the second half of 2026, reflecting our confidence in IFF’s long-term value creation opportunity and the compelling return profile of repurchases at current valuation levels. We expect to execute the remaining $2.0 billion of the authorization following the anticipated transaction close, with completion of this repurchase program targeted by the end of 2027.”
“With Food Ingredients now reported as discontinued operations, we are introducing full-year 2026 guidance on a continuing operations basis. The underlying performance in the three business units is consistent with previous guidance given. The new presentation provides greater visibility into the growth and margin profile of our go-forward portfolio, reinforcing the outlook for IFF’s continuing operations and our ability to create long-term shareholder value.”
Second Quarter 2026 Consolidated Financial Results1
Reported net sales for the second quarter were $1.95 billion, an increase of 2% versus the prior-year period. On a comparable basis3, currency neutral sales2 increased 6% versus the prior-year period led by broad-based growth including high-single digit performance in Scent and mid-single digit growth in Taste and Health & Biosciences. Inclusive of discontinued operations net sales of $827 million, net sales for the second quarter were $2.78 billion. Income from continuing operations before taxes on a reported basis for the second quarter was $64 million. Adjusted operating EBITDA2 for the second quarter was $408 million. On a comparable basis3, currency neutral adjusted operating EBITDA2 improved 6% versus the prior-year period, driven primarily by volume growth and productivity gains. Inclusive of discontinued operations adjusted operating EBITDA2 of $140 million, adjusted operating EBITDA2 for the second quarter was $548 million. Reported earnings per share (EPS) for the second quarter was $0.13 per diluted share. Adjusted EPS excluding amortization2 was $0.82 per diluted share. Cash flows from operations for the first six months of the year for continuing and discontinued operations was $679 million, increasing $311 million year-over-year, and free cash flow2, defined as cash flows from operations less capital expenditures, totaled $378 million, increasing $284 million year-over-year. Total debt to trailing twelve months net income at the end of the second quarter was 22.6x. Net debt to credit adjusted EBITDA2 at the end of the second quarter was 2.5x, and includes the effects of both continuing and discontinued operations. Second Quarter 2026 Segment Summary1: Growth vs. Prior Year
On a reported basis, second quarter sales were $688 million. On a comparable basis3, currency neutral sales2 increased 4% with broad-based growth in all regions. Taste adjusted operating EBITDA2 was $124 million and adjusted operating EBITDA margin2 was 18.0% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 6% driven primarily by volume growth and favorable net pricing. Health & Biosciences Segment
On a reported basis, second quarter sales were $601 million. On a comparable basis3, currency neutral sales2 increased 5% with growth in all businesses, led by Grain Processing, Food Biosciences & Animal Nutrition. Health & Biosciences adjusted operating EBITDA2 was $150 million and adjusted operating EBITDA margin2 was 25.0% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 6% primarily driven by volume growth. Scent Segment
On a reported basis, second quarter sales were $665 million. On a comparable basis3, currency neutral sales2 increased 8% led by double-digit growth in Fragrance Ingredients and a high single-digit performance in Consumer Fragrance. Fine Fragrance increased low-single digits compared to the prior year period as it was impacted by the Middle East conflict. Scent adjusted operating EBITDA2 was $134 million and adjusted operating EBITDA margin2 was 20.2% in the second quarter. On a comparable basis3, currency neutral adjusted operating EBITDA2 increased 5% driven primarily by volume growth and productivity. Sale of Food Ingredients Disposal Group
On May 29, 2026, IFF announced that it had entered into a definitive agreement to sell its Food Ingredients disposal group, which was included in the Food Ingredients segment, to CVC Capital Partners for net cash proceeds of approximately $3.8 billion, subject to customary transaction adjustments. The transaction is expected to close by the end of the second quarter of 2027, subject to customary closing conditions and receipt of regulatory approvals. As part of the transaction, IFF will retain an approximately 10% minority equity interest in the business enabling continued collaboration and cooperation between IFF and Food Ingredients.
Stranded costs related to this transaction represent approximately $100 million of corporate and functional expenses previously allocated to the Food Ingredients business that are expected to remain with IFF following the close of the transaction. IFF has a remediation plan in place, with actions underway, and expects to eliminate approximately two thirds of these costs within the first year following the transaction close, and substantially all within two years following transaction close.
On March 2, 2026, the Company completed the divestiture of the SCL disposal group, which was also included in the Food Ingredients segment. The divestitures were part of a combined strategy by IFF to divest the majority of its Food Ingredients segment and strengthen its portfolio.
As a result, beginning in the second quarter of 2026, the financial results of the Food Ingredients disposal group and the financial results of the SCL disposal group prior to its divestiture on March 2, 2026, are reflected in IFF’s Consolidated Financial Statements as discontinued operations, along with comparative periods.
The classification of the Food Ingredients and SCL businesses as discontinued operations reflects the Company’s continued focus on its remaining innovation-led, higher-growth and higher-margin segments: Taste, Scent and Health & Biosciences. On a continuing operations basis, the Company delivered second quarter 2026 Adjusted Operating EBITDA margin of 20.9%, an improvement compared to 19.7% including discontinued operations.
Share Repurchase Authorization
The Company announced that its Board of Directors has authorized an enhanced share repurchase authorization with a total value of $2.5 billion; this amount included approximately $400 million remaining on its prior authorization. Under the program, the Board of Directors also authorized an accelerated share repurchase of $500 million, which the Company expects to execute in the second half of 2026. The remaining $2.0 billion share repurchase is expected to be executed following the closing of the Food Ingredients disposal group divestiture, with an expected completion of the program by the end of 2027. The Board will review the share repurchase program periodically and may authorize adjustment of its term and size. The Company plans to fund repurchases from cash provided by operating activities, short-term debt and net cash proceeds provided by the divestiture of the Food Ingredients disposal group.
Financial Guidance1
The Company has provided financial guidance to reflect the separation of the Food Ingredients disposal group and SCL disposal group as discontinued operations. For continuing operations, the Company expects full year 2026 sales to be in the range of $7.4 billion to $7.6 billion excluding approximately $3.2 billion related to discontinued operations. For the full year 2026 adjusted operating EBITDA is expected to be in the range of $1.53 billion to $1.60 billion, excluding approximately $520 million related to discontinued operations.
On a continuing operations basis, the Company expects comparable currency neutral sales growth to be between 2% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 4% to 8%.
Based on recent market foreign exchange rates, the Company continues to expect that foreign exchange will have an approximately 1% positive impact on sales growth and have an approximately 2% positive impact on adjusted operating EBITDA growth in 2026.
Audio Webcast
A live webcast to discuss the Company’s second quarter 2026 financial results will be held on August 5, 2026, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company’s IR website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available on the Company’s website approximately one hour after the event and will remain available on IFF’s website for one year.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes statements that are not historical facts and are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the pending divestiture for our Food Ingredients segment), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the Company, are subject to change, and involve uncertainties that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.
The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.
We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.
Use of Non-GAAP Financial Measures
We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt to credit adjusted EBITDA. Unless otherwise noted, all amounts and percentages in this press release reflect the results from continuing operations, with the exception of the Statements of Cash Flows and net debt to credit adjusted EBITDA which are presented on a combined continuing and discontinued basis.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors.
Comparable results for the second quarter exclude the impact of divestitures.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, losses (gains on business disposals, loss on assets classified as held for sale, divestiture costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, entity realignment and other items.
Adjusted EPS ex Amortization excludes the impact of non-operational items including restructuring and other charges, divestiture costs, losses (gains) on business disposals, strategic initiatives costs, regulatory costs and other items that are not a part of recurring operations.
Free Cash Flow is operating cash flow (i.e., cash flow from operations) less capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items.
These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA under "Financial Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, and health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
International Flavors & Fragrances Inc.
Consolidated Statements of Income (Loss)
(Amounts in millions except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
% Change
2026
2025
% Change
Net sales
$
1,954
$
1,919
2
%
$
3,860
$
3,969
(3
)%
Cost of sales
1,101
1,095
1
%
2,178
2,293
(5
)%
Gross profit
853
824
4
%
1,682
1,676
—
%
Research and development expenses
170
170
—
%
324
325
—
%
Selling and administrative expenses
437
409
7
%
771
799
(4
)%
Amortization of acquisition-related intangibles
82
82
—
%
166
162
2
%
Impairment of goodwill
—
—
NMF
—
34
NMF
Restructuring and other charges
6
20
(70
)%
10
35
(71
)%
Losses on sale of assets
—
1
(100
)%
—
1
(100
)%
Operating profit
158
142
11
%
411
320
28
%
Interest expense
46
61
(25
)%
90
132
(32
)%
Gain on extinguishment of debt
—
(488
)
NMF
—
(488
)
NMF
Losses on business disposals
1
111
(99
)%
1
111
(99
)%
Loss on assets classified as held for sale
27
—
NMF
27
—
NMF
Other expense, net
20
20
—
%
33
39
(15
)%
Income from continuing operations before taxes
64
438
(85
)%
260
526
(51
)%
Provision (benefit) for income taxes
31
(112
)
(128
)%
72
(92
)
(178
)%
Net income from continuing operations
33
550
(94
)%
188
618
(70
)%
Income (loss) from discontinued operations before tax
31
66
(53
)%
44
(1,016
)
(104
)%
Provision for income taxes from discontinued operations
13
17
(24
)%
11
20
(45
)%
Net income (loss) from discontinued operations
18
49
(63
)%
33
(1,036
)
(103
)%
Net income (loss)
51
599
(91
)%
221
(418
)
(153
)%
Net income attributable to non-controlling interests from continuing operations
—
—
NMF
1
1
—
%
Net income attributable to non-controlling interests from discontinued operations
1
—
NMF
1
—
NMF
Net income (loss) attributable to IFF shareholders
$
50
$
599
(92
)%
$
219
$
(419
)
(152
)%
Net income (loss) per share - basic
Continuing operations
$
0.13
$
2.15
$
0.73
$
2.41
Discontinued operations
0.07
0.19
0.13
(4.05
)
Net income (loss) per share - basic
$
0.20
$
2.34
$
0.86
$
(1.64
)
Net income (loss) per share - diluted
Continuing operations
$
0.13
$
2.14
$
0.73
$
2.40
Discontinued operations
0.07
0.19
0.12
(4.03
)
Net income (loss) per share - diluted
$
0.20
$
2.33
$
0.85
$
(1.63
)
Average number of shares outstanding
Average number of shares outstanding - basic
255
256
256
256
Average number of shares outstanding - diluted
257
257
257
257
NMF Not meaningful
International Flavors & Fragrances Inc.
Condensed Consolidated Balance Sheets
(Amounts in millions)
(Unaudited)
June 30,
December 31,
2026
2025
Cash and cash equivalents
$
569
$
590
Receivables, net
1,424
1,294
Inventories
1,505
1,507
Prepaid expenses and other current assets
750
742
Current assets of discontinued operations
4,840
1,461
Total current assets
9,088
5,594
Property, plant and equipment, net
2,666
2,685
Goodwill and other intangibles, net
11,877
12,190
Other assets
1,523
1,469
Non-current assets of discontinued operations
—
3,601
Total assets
$
25,154
$
25,539
Short-term borrowings
$
964
$
1,254
Other current liabilities
2,276
2,129
Current liabilities of discontinued operations
1,170
550
Total current liabilities
4,410
3,933
Long-term debt
4,735
4,738
Non-current liabilities
2,000
2,065
Non-current liabilities of discontinued operations
—
617
Total Shareholders' equity including Non-controlling interests
14,009
14,186
Total liabilities and shareholders' equity
$
25,154
$
25,539
International Flavors & Fragrances Inc.
Consolidated Statements of Cash Flows(1)
(Amounts in millions)
(Unaudited)
Six Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
221
$
(418
)
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization
464
478
Deferred income taxes
(37
)
(177
)
Loss on assets classified as held for sale
27
—
Losses on sale of assets
—
1
Losses on business disposals
8
111
Stock-based compensation
51
51
Pension contributions
(10
)
(9
)
Gain on extinguishment of debt
—
(488
)
Impairment of goodwill
—
1,153
Changes in assets and liabilities, net of acquisitions:
Trade receivables
(188
)
(106
)
Inventories
(45
)
(124
)
Accounts payable
288
77
Accruals for incentive compensation
(63
)
(204
)
Other assets/liabilities, net
(37
)
23
Net cash provided by operating activities
679
368
Cash flows from investing activities:
Additions to property, plant and equipment
(301
)
(274
)
Additions to intangible assets
(2
)
—
Joint venture capital contributions
—
(4
)
Net proceeds received from business disposals
201
2,707
Payments to buyer for business disposals
(12
)
—
Cash (paid) received on foreign currency forward contracts
(19
)
112
Net cash (used in) provided by investing activities
(133
)
2,541
Cash flows from financing activities:
Cash dividends paid to shareholders
(204
)
(204
)
Net repayments of commercial paper (maturities less than three months)
(264
)
—
Principal payments of debt
—
(2,413
)
Withholding tax paid on stock-based compensation
(18
)
(22
)
Purchase of treasury stock
(71
)
—
Other, net
(8
)
(15
)
Net cash used in financing activities
(565
)
(2,654
)
Effect of exchange rate changes on cash and cash equivalents
(2
)
90
Net change in cash and cash equivalents
(21
)
345
Cash and cash equivalents at beginning of year
590
471
Cash and cash equivalents at end of period
$
569
$
816
The following table reconciles cash and cash equivalents between the Company's statement of cash flows for the periods ended June 30, 2026 and June 30, 2025 to the amounts reported on the Company's balance sheet:
AMOUNTS IN MILLIONS
June 30, 2026
December 31, 2025
June 30, 2025
December 31, 2024
Current assets
Cash and cash equivalents
$
569
$
590
$
816
$
469
Cash and cash equivalents included in Assets held for sale
—
—
—
2
Cash and cash equivalents
$
569
$
590
$
816
$
471
International Flavors & Fragrances Inc.
Reportable Segment Performance
(Amounts in millions)
(Unaudited)
Three Months Ended June 30, 2026
Taste
Health & Biosciences
Scent
Total
Net Sales
$
688
$
601
$
665
$
1,954
Cost of Sales
(415
)
(313
)
(374
)
Research & Development Expenses
(48
)
(58
)
(64
)
Selling & Administrative Expenses
(120
)
(114
)
(112
)
Depreciation Expense Add-back (a)
19
34
19
Adjusted Operating EBITDA
$
124
$
150
$
134
$
408
Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA
$
408
Depreciation & Amortization
(154
)
Interest Expense
(46
)
Other Expense, net
(20
)
Restructuring and Other Charges (b)
(6
)
Losses on Business Disposals (d)
(1
)
Loss on Assets Classified as Held for Sale (e)
(27
)
Divestiture Costs (f)
(10
)
Strategic Initiative Costs (g)
(9
)
Regulatory Costs (h)
(71
)
Entity Realignment Costs (j)
(1
)
Other (k)
1
Income Before Taxes from Continuing Operations
$
64
Segment Adjusted Operating EBITDA Margin
Taste
18.0
%
Health & Biosciences
25.0
%
Scent
20.2
%
Consolidated
20.9
%
Three Months Ended June 30, 2025
Taste
Health & Biosciences
Scent
Pharma Solutions
Total
Net Sales
$
654
$
559
$
603
$
103
$
1,919
Cost of Sales
(397
)
(294
)
(336
)
(68
)
Research & Development Expenses
(49
)
(55
)
(62
)
(3
)
Selling & Administrative Expenses
(108
)
(101
)
(101
)
(10
)
Depreciation Expense Add-back (a)
17
30
17
—
Adjusted Operating EBITDA
$
117
$
139
$
121
$
22
$
399
Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA
$
399
Depreciation & Amortization
(146
)
Interest Expense
(61
)
Other Expense, net
(20
)
Restructuring and Other Charges (b)
(20
)
Losses on Business Disposals (d)
(111
)
Divestiture Costs (f)
(26
)
Strategic Initiative Costs (g)
(6
)
Regulatory Costs (h)
(53
)
Gain on Debt Extinguishment (i)
488
Entity Realignment Costs (j)
(4
)
Other (k)
(2
)
Income Before Taxes from Continuing Operations
$
438
Segment Adjusted Operating EBITDA Margin
Taste
17.9
%
Health & Biosciences
24.9
%
Scent
20.1
%
Pharma Solutions
21.4
%
Consolidated
20.8
%
Six Months Ended June 30, 2026
Taste
Health & Biosciences
Scent
Total
Net Sales
$
1,368
$
1,176
$
1,316
$
3,860
Cost of Sales
(808
)
(622
)
(749
)
Research & Development Expenses
(93
)
(111
)
(120
)
Selling & Administrative Expenses
(228
)
(219
)
(209
)
Depreciation Expense Add-back (a)
37
66
37
Adjusted Operating EBITDA
$
276
$
290
$
275
$
841
Reconciliation of Adjusted Operating EBITDA
Total Adjusted Operating EBITDA
$
841
Depreciation & Amortization
(306
)
Interest Expense
(90
)
Other Expense, net
(33
)
Restructuring and Other Charges (b)
(10
)
Losses on Business Disposals (d)
(1
)
Loss on Assets Classified as Held for Sale (e)
(27
)
Divestiture Costs (f)
(15
)
Strategic Initiative Costs (g)
(18
)
Regulatory Costs (h)
(81
)
Entity Realignment Costs (j)
(2
)
Other (k)
2
Income Before Taxes from Continuing Operations
$
260
Segment Adjusted Operating EBITDA Margin
Taste
20.2
%
Health & Biosciences
24.7
%
Scent
20.9
%
Consolidated
21.8
%
Six Months Ended June 30, 2025
Taste
Health & Biosciences
Scent
Pharma Solutions
Total
Net Sales
$
1,304
$
1,079
$
1,217
$
369
$
3,969
Cost of Sales
(791
)
(576
)
(679
)
(248
)
Research & Development Expenses
(90
)
(106
)
(120
)
(8
)
Selling & Administrative Expenses
(209
)
(193
)
(191
)
(42
)
Depreciation Expense Add-back (a)
32
58
32
5
Adjusted Operating EBITDA
$
246
$
262
$
259
$
76
$
843
Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA
$
843
Depreciation & Amortization
(288
)
Interest Expense
(132
)
Other Expense, net
(39
)
Restructuring and Other Charges (b)
(35
)
Impairment of Goodwill (c)
(34
)
Losses on Business Disposals (d)
(111
)
Divestiture Costs (f)
(77
)
Strategic Initiative Costs (g)
(14
)
Regulatory Costs (h)
(64
)
Gain on Debt Extinguishment (i)
488
Entity Realignment Costs (j)
(5
)
Other (k)
(6
)
Income Before Taxes from Continuing Operations
$
526
Segment Adjusted Operating EBITDA Margin
Taste
18.9
%
Health & Biosciences
24.3
%
Scent
21.3
%
Pharma Solutions
20.6
%
Consolidated
21.2
%
(a)
There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results.
(b)
For 2026 and 2025, represents costs related to severance as part of the IFF Productivity Program.
(c)
For 2025, represents the impairment of goodwill attributable to the portion of the Food Ingredients reporting unit that is not included within the Food Ingredients or SCL disposal groups.
(d)
For 2026, primarily represents losses recognized as part of final closing price adjustments related to the divestiture of the Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business.
(e)
For 2026, represents the loss on assets classified as held for sale related to the CitraSource business within the Scent segment.
(f)
For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients and SCL disposal groups. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(g)
Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(h)
For 2026 and 2025, represents costs primarily related to provisions recognized for the ongoing investigations of the fragrance businesses and legal fees incurred.
(i)
For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers.
(j)
For 2025, the Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework. A one-time tax benefit was achieved as part of this restructuring which is partially offset by the execution costs to implement.
(k)
For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company, in addition to consulting costs related to the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework.
International Flavors & Fragrances Inc.
Discontinued Operations Reconciliation
(Amounts in millions)
(Unaudited)
Three Months Ended June 30,
2026
2025
Reconciliation of Adjusted Operating EBITDA from Discontinued Operations:
Income (Loss) From Discontinued Operations Before Tax
31
66
Depreciation & Amortization
64
97
Other Expense, net (a)
1
(10
)
Divestiture Costs (c)
44
—
Adjusted Operating EBITDA from Discontinued Operations
140
153
Adjusted Operating EBITDA from Continuing Operations
408
399
Total IFF Adjusted Operating EBITDA Inclusive of Discontinued Operations
$
548
$
552
Six Months Ended June 30,
2026
2025
Reconciliation of Adjusted Operating EBITDA from Discontinued Operations:
Income (Loss) From Discontinued Operations Before Tax
$
44
$
(1,016
)
Depreciation & Amortization
158
190
Other Expense, net (a)
1
(9
)
Restructuring and Other Charges (b)
2
3
Divestiture Costs (c)
63
—
Losses on Business Disposals (d)
7
—
Impairment of Goodwill (e)
—
1,119
Adjusted Operating EBITDA from Discontinued Operations
275
287
Adjusted Operating EBITDA from Continuing Operations
841
843
Total IFF Adjusted Operating EBITDA Inclusive of Discontinued Operations
$
1,116
$
1,130
(a)
For 2026 and 2025, primarily represents foreign exchange losses (gains).
(b)
For 2026 and 2025, represents severance costs under the IFF Productivity Program.
(c)
For 2026, primarily represents costs related to the Company’s anticipated divestiture of the Food Ingredients disposal group and completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees and professional and legal fees.
(d)
For 2026, represents losses recognized upon the sale of the SCL disposal group.
(e)
For 2025, represents the impairment of goodwill attributable to the portion of the Food Ingredients reporting unit classified within the Food Ingredients disposal group and the SCL disposal group.
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
For the three months ended June 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
Reconciliation of Selling and Administrative Expenses1
Second Quarter
(DOLLARS IN MILLIONS)
2026
2025
Reported (GAAP)
$
437
$
409
Divestiture Costs (b)
(10
)
(26
)
Strategic Initiatives Costs (e)
(9
)
(6
)
Regulatory Costs (f)
(71
)
(53
)
Entity Realignment Costs (h)
(1
)
(2
)
Adjusted (Non-GAAP)
$
346
$
322
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Net Income (Loss) and EPS from Continuing Operations1
Second Quarter
2026
2025
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
Income before taxes
(Benefit) Provision for income taxes (j)
Net income attributable to IFF
Diluted EPS
Income before taxes
(Benefit) Provision for income taxes (j)
Net income attributable to IFF
Diluted EPS
Reported (GAAP)
$
64
$
31
$
33
$
0.13
$
438
$
(112
)
$
550
$
2.14
Restructuring and Other Charges (a)
6
1
5
0.02
20
5
15
0.06
Divestiture Costs (b)
10
1
9
0.04
26
22
4
0.02
Losses on Business Disposals (c)
1
—
1
—
111
(137
)
248
0.97
Losses on Assets Classified as Held for Sale (d)
27
4
23
0.09
—
—
—
—
Strategic Initiative Costs (e)
9
2
7
0.02
6
1
5
0.02
Regulatory Costs (f)
71
—
71
0.27
53
12
41
0.16
Gain on debt extinguishment (g)
—
—
—
—
(488
)
(116
)
(372
)
(1.45
)
Entity Realignment Costs (h)
1
—
1
—
4
361
(357
)
(1.40
)
Other (i)
(1
)
—
(1
)
—
2
—
2
—
Adjusted (Non-GAAP)
$
188
$
39
$
149
$
0.57
$
172
$
36
$
136
$
0.52
Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1
Second Quarter
(DOLLARS AND SHARE AMOUNTS IN MILLIONS)
2026
2025
Numerator
Adjusted (Non-GAAP) Net Income
$
149
$
136
Amortization of Acquisition related Intangible Assets
82
82
Tax impact on Amortization of Acquisition related Intangible Assets (j)
20
20
Amortization of Acquisition related Intangible Assets, net of tax (k)
62
62
Adjusted (Non-GAAP) Net Income ex. Amortization
$
211
$
198
Denominator
Weighted average shares assuming dilution (diluted)
257
257
Adjusted (Non-GAAP) EPS ex. Amortization
$
0.82
$
0.77
(a)
For 2026 and 2025, represents costs related to severance as part of the IFF Productivity Program.
(b)
For 2026 and 2025, primarily represents costs related to the Company’s completed divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(c)
For 2026, primarily represents losses recognized as part of final settlement adjustments related to the divestiture of the Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business.
(d)
For 2026, represents the losses recognized on assets classified as held for sale of the CitraSource business.
(e)
Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(f)
For 2026 and 2025, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
(g)
For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of tender offers.
(h)
For 2025, the Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework. A one-time tax benefit was achieved as part of this restructuring which is partially offset by the execution costs to implement.
(i)
For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company.
(j)
The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments.
(k)
Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
For the six months ended June 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
Reconciliation of Selling and Administrative Expenses1
Second Quarter Year-to-Date
(DOLLARS IN MILLIONS)
2026
2025
Reported (GAAP)
$
771
$
799
Divestiture Costs (c)
(15
)
(77
)
Strategic Initiatives Costs (f)
(18
)
(14
)
Regulatory Costs (g)
(81
)
(64
)
Entity Realignment Costs (i)
(2
)
(4
)
Other (j)
1
(5
)
Adjusted (Non-GAAP)
$
656
$
635
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Net Income (Loss) and EPS from Continuing Operations1
Second Quarter Year-to-Date
2026
2025
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
Income before taxes
Provision (Benefit) for income taxes (k)
Net income attributable to IFF (l)
Diluted EPS
Income before taxes
Provision (Benefit) for income taxes (k)
Net income attributable to IFF (l)
Diluted EPS
Reported (GAAP)
$
260
$
72
$
187
$
0.73
$
526
$
(92
)
$
617
$
2.40
Restructuring and Other Charges (a)
10
3
7
0.03
35
8
27
0.11
Impairment of Goodwill (b)
—
—
—
—
34
—
34
0.13
Divestiture Costs (c)
15
2
13
0.06
77
34
43
0.17
Losses on Business Disposals (d)
1
—
1
—
111
(137
)
248
0.97
Losses on Assets Classified as Held for Sale (e)
27
4
23
0.09
—
—
—
—
Strategic Initiative Costs (f)
18
4
14
0.05
14
3
11
0.04
Regulatory Costs (g)
81
3
78
0.30
64
15
49
0.19
Gain on debt extinguishment (h)
—
—
—
—
(488
)
(116
)
(372
)
(1.45
)
Entity Realignment Costs (i)
2
1
1
—
5
361
(356
)
(1.40
)
Other (j)
(2
)
—
(2
)
—
6
—
6
0.02
Adjusted (Non-GAAP)
$
412
$
89
$
322
$
1.26
$
384
$
76
$
307
$
1.18
Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1
Second Quarter Year-to-Date
(DOLLARS AND SHARE AMOUNTS IN MILLIONS)
2026
2025
Numerator
Adjusted (Non-GAAP) Net Income
$
322
$
307
Amortization of Acquisition related Intangible Assets
166
162
Tax impact on Amortization of Acquisition related Intangible Assets (k)
41
40
Amortization of Acquisition related Intangible Assets, net of tax (m)
125
122
Adjusted (Non-GAAP) Net Income ex. Amortization
$
447
$
429
Denominator
Weighted average shares assuming dilution (diluted)
257
257
Adjusted (Non-GAAP) EPS ex. Amortization
$
1.74
$
1.67
(a)
For 2026 and 2025, represents costs related to severance as part of the IFF Productivity Program.
(b)
For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit that is not included in the Food Ingredients or SCL disposal groups.
(c)
For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(d)
For 2026, primarily represents losses recognized as part of final settlement adjustments related to the divestiture of the Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business.
(e)
For 2026, represents the losses recognized on assets classified as held for sale of the CitraSource business.
(f)
Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(g)
For 2026 and 2025, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
(h)
For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers.
(i)
For 2025, the Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework. A one-time tax benefit was achieved as part of this restructuring which is partially offset by the execution costs to implement.
(j)
For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company.
(k)
The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments.
(l)
For each of the six months ended June 30, 2026 and June 30, 2025, reported and adjusted net income from continuing operations are each decreased by income attributable to non-controlling interest from continuing operations of $1 million.
(m)
Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances Inc.
Debt Covenants
(Amounts in millions)
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Credit Adjusted EBITDA to Net Income(1)
(DOLLARS IN MILLIONS)
Twelve Months Ended June 30, 2026
Net income
$
254
Interest expense
187
Income taxes
98
Depreciation and amortization
948
Specified items(2)
341
Non-cash items(3)
228
Credit Adjusted EBITDA
$
2,056
_______________________
(1)
Credit Adjusted EBITDA presented includes results from continuing and discontinued operations.
(2)
Specified items consisted of restructuring and other charges, impairment of goodwill, divestiture costs, strategic initiatives costs, regulatory costs, and other costs that are not related to recurring operations.
(3)
Non-cash items consisted of losses (gains) on sale of assets, losses (gains) on business disposals, loss on assets classified as held for sale, and stock-based compensation.
Reconciliation of Net Debt to Total Debt
(DOLLARS IN MILLIONS)
June 30, 2026
Total debt(1)
$
5,735
Adjustments:
Cash and cash equivalents
569
Net debt
$
5,166
International Flavors & Fragrances Inc.
Comparable Currency Neutral Segment Performance
(Amounts in millions)
(Unaudited)
The following information and schedule provides reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedule is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net Sales
Taste(1)
$
679
$
650
$
1,337
$
1,294
Health & Biosciences
587
559
1,134
1,079
Scent
650
603
1,272
1,217
Pharma Solutions(2)
—
—
—
—
Consolidated
$
1,916
$
1,812
$
3,743
$
3,590
Segment Adjusted Operating EBITDA(5)
Taste(1)
$
122
$
115
$
268
$
236
Health & Biosciences
146
138
277
256
Scent
126
120
258
253
Pharma Solutions(2)
—
—
—
—
Total
394
373
803
745
Depreciation & Amortization
(154
)
(146
)
(306
)
(288
)
Interest Expense
(46
)
(61
)
(90
)
(132
)
Other Expense, net
(20
)
(20
)
(33
)
(39
)
Restructuring and Other Charges
(6
)
(20
)
(10
)
(35
)
Impairment of Goodwill
—
—
—
(34
)
Losses on Business Disposals
(1
)
(111
)
(1
)
(111
)
Loss on Assets Classified as Held for Sale
(27
)
—
(27
)
—
Divestiture Costs
(10
)
(26
)
(15
)
(77
)
Strategic Initiatives Costs
(9
)
(6
)
(18
)
(14
)
Regulatory Costs
(71
)
(53
)
(81
)
(64
)
Gain on Debt Extinguishment
—
488
—
488
Entity Realignment Costs
(1
)
(4
)
(2
)
(5
)
Other
1
(2
)
2
(6
)
Impact of Currency Fluctuations(3)
14
—
38
—
Impact of Business Divestitures(4)
—
26
—
98
Income from continuing operations before taxes
$
64
$
438
$
260
$
526
Segment Adjusted Operating EBITDA Margin(4)
Taste
18.0
%
17.7
%
20.0
%
18.2
%
Health & Biosciences
24.9
%
24.7
%
24.4
%
23.7
%
Scent
19.4
%
19.9
%
20.3
%
20.8
%
Consolidated
20.6
%
20.6
%
21.5
%
20.8
%
______________________
(1)
Taste sales and segment adjusted operating EBITDA information exclude the results of the Rene Laurent business that was divested on December 1, 2025, to present fully comparable scenarios.
(2)
Pharma sales and segment adjusted operating EBITDA information exclude the results of the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios.
(3)
Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.
(4)
Amounts exclude the results of the Rene Laurent business that was divested on December 1, 2025 and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios.
(5)
Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Health & Biosciences, and Scent segments to align with the updated 2025 operating model.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) is expected to release its Q2 2026 results after the market closes on Tuesday, August 4th. Analysts expect International Flavors & Fragrances to post earnings of $1.07 per share and revenue of $2.6210 billion for the quarter. Parties can find conference call details on the company’s upcoming Q2 2026 earning results page for the latest details on the call scheduled for Wednesday, August 5, 2026 at 9:00 AM ET.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The specialty chemicals company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.17. The company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.64 billion. International Flavors & Fragrances had a net margin of 7.78% and a return on equity of 7.65%. The business’s revenue was down 3.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.20 EPS. On average, analysts expect International Flavors & Fragrances to post $5 EPS for the current fiscal year and $5 EPS for the next fiscal year.
International Flavors & Fragrances Stock Up 0.1% Shares of IFF opened at $79.29 on Monday. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.87 and a current ratio of 1.49. The company has a 50-day simple moving average of $77.02 and a 200-day simple moving average of $75.03. International Flavors & Fragrances has a 52 week low of $59.14 and a 52 week high of $84.45. The firm has a market capitalization of $20.24 billion, a P/E ratio of 24.25, a P/E/G ratio of 1.98 and a beta of 0.93.
International Flavors & Fragrances Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 18th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.0%. The ex-dividend date is Friday, September 18th. International Flavors & Fragrances’s payout ratio is currently 48.93%.
Analysts Set New Price Targets IFF has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft cut their price target on International Flavors & Fragrances from $95.00 to $90.00 and set a “buy” rating for the company in a report on Monday, June 1st. BNP Paribas Exane upped their target price on International Flavors & Fragrances from $85.00 to $95.00 in a research note on Thursday, May 7th. Jefferies Financial Group raised their target price on International Flavors & Fragrances from $97.00 to $105.00 in a research report on Thursday, May 7th. Morgan Stanley lifted their price target on shares of International Flavors & Fragrances from $93.00 to $95.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 1st. Finally, Argus increased their price objective on shares of International Flavors & Fragrances from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Thirteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $91.16.
Get Our Latest Stock Analysis on International Flavors & Fragrances
Insider Activity In related news, Director Paul J. Fribourg acquired 260,000 shares of the business’s stock in a transaction on Monday, June 1st. The stock was bought at an average cost of $74.28 per share, with a total value of $19,312,800.00. Following the completion of the acquisition, the director owned 2,682,730 shares in the company, valued at $199,273,184.40. The trade was a 10.73% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.07% of the company’s stock.
Institutional Investors Weigh In On International Flavors & Fragrances A number of hedge funds have recently made changes to their positions in IFF. Pacer Advisors Inc. raised its position in International Flavors & Fragrances by 7.6% in the 4th quarter. Pacer Advisors Inc. now owns 21,984 shares of the specialty chemicals company’s stock valued at $1,482,000 after purchasing an additional 1,544 shares during the last quarter. Invesco Ltd. grew its holdings in shares of International Flavors & Fragrances by 4.9% during the fourth quarter. Invesco Ltd. now owns 7,519,812 shares of the specialty chemicals company’s stock worth $506,760,000 after purchasing an additional 352,636 shares during the last quarter. Corient Private Wealth LLC grew its holdings in shares of International Flavors & Fragrances by 63.8% during the fourth quarter. Corient Private Wealth LLC now owns 110,140 shares of the specialty chemicals company’s stock worth $7,422,000 after purchasing an additional 42,906 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in shares of International Flavors & Fragrances by 36.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 51,528 shares of the specialty chemicals company’s stock valued at $3,472,000 after buying an additional 13,685 shares in the last quarter. Finally, State of Tennessee Department of Treasury raised its holdings in shares of International Flavors & Fragrances by 231.7% in the fourth quarter. State of Tennessee Department of Treasury now owns 95,739 shares of the specialty chemicals company’s stock valued at $6,684,000 after buying an additional 66,872 shares during the last quarter. Institutional investors and hedge funds own 96.02% of the company’s stock.
About International Flavors & Fragrances (Get Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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Key Takeaways International Flavors is expected to report Q2 sales of $2.68 billion and EPS of $1.14, both down y/y.IFF's volume growth and productivity efforts may support results despite higher raw material costs.IFF expects growth in Taste, Scent and Health & Biosciences, while Food Ingredients may decline. International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4, after the closing bell.
The Zacks Consensus Estimate for sales is pegged at $2.68 billion, indicating a 2.9% dip from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.14 per share, which has been moved down in the past 60 days. The estimate indicates a year-over-year decline of 0.9%.
Image Source: Zacks Investment Research
IFF’s Earnings Surprise HistoryInternational Flavors’ earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average beat being 4.1%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for International FlavorsOur model predicts an earnings beat for IFF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Earnings ESP: IFF has an Earnings ESP of +0.73%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped IFF’s Q2 PerformanceThe company has been witnessing volume growth, with broad-based contributions across each of its businesses. IFF’s ongoing efforts to improve productivity and reduce costs are likely to have benefited its margins.
However, International Flavors has been incurring high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost-reduction efforts, these factors are likely to have dented margins in the to-be-reported quarter.
Projections for International Flavors’ Segments in Q2Our model estimates the Taste segment’s second-quarter sales to rise 2.6% year over year to $647 million. The segment’s adjusted operating EBITDA is projected to be $127 million, indicating growth of 1.7% from the year-ago quarter’s reported numbers.
Our model estimates the Food Ingredient segment’s second-quarter sales to dip 5.4% year over year to $804 million. The segment’s adjusted operating EBITDA is estimated to be $126 million, indicating an increase of 1.6% from the year-ago reported figure.
We expect the Scent segment’s sales to increase 3.5% year over year to $624 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. However, the gains might have been partially negated by higher costs. Our estimate for the segment’s quarterly operating EBITDA is $131 million, indicating a year-over-year rise of 0.4%.
The Health & Biosciences segment’s sales are projected to be $601 million, indicating a 4.3% increase from the year-ago quarter’s reported figure. We expect operating EBITDA to increase 2.1% to $154 million.
IFF Stock’s Price PerformanceIn the past year, International Flavors shares have gained 13.4% compared with the industry’s 6.9% growth.
Image Source: Zacks Investment Research
Other Stocks to ConsiderHere are some Basic Materials stocks, which, according to our model, also have the right combination of elements to post an earnings beat in their upcoming releases.
The Chemours Company (CC - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 4, has an Earnings ESP of +27.17% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours’ quarterly earnings are pegged at 43 cents per share, indicating a year-over-year dip of 25%. The company delivered a trailing four-quarter average earnings surprise of 69%.
Avient Corporation (AVNT - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 6, has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings for Avient for the second quarter of 2026 is 89 cents per share, indicating an 11.2% year-over-year increase. Avient has a trailing four-quarter average earnings surprise of 2.1%.
Wheaton Precious Metals Corp. (WPM - Free Report) , slated to release second-quarter 2026 earnings on Aug. 6, currently has an Earnings ESP of +3.20% and a Zacks Rank of 3.
Wheaton Precious Metals’ quarterly earnings are pegged at $1.13 per share, indicating a year-over-year jump of 79%. The company delivered a trailing four-quarter average earnings surprise of 14%.
NEW YORK--(BUSINESS WIRE)---- $IFF--IFF (NYSE: IFF) announced that its Board of Directors has declared a regular quarterly cash dividend of $0.40 per share of its common stock, payable on October 9, 2026 to shareholders of record as of September 18, 2026. Welcome to IFF At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, and health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing w.
Wall Street expects a year-over-year decline in earnings on lower revenues when International Flavors (IFF - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis ingredients producer for food, cosmetics and consumer products industries is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of -0.9%.
Revenues are expected to be $2.68 billion, down 2.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for International Flavors?For International Flavors, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.73%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that International Flavors will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that International Flavors would post earnings of $1.08 per share when it actually produced earnings of $1.25, delivering a surprise of +15.74%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
International Flavors appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Chemical - Specialty industry, Perimeter Solutions, SA (PRM - Free Report) , is soon expected to post earnings of $0.43 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +10.3%. This quarter's revenue is expected to be $220.31 million, up 35.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Perimeter Solutions, SA has been revised 10.1% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #5 (Strong Sell), makes it difficult to conclusively predict that Perimeter Solutions, SA will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Dimensional Fund Advisors LP increased its holdings in International Flavors & Fragrances Inc. (NYSE:IFF – Free Report) by 8.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,809,090 shares of the specialty chemicals company’s stock after acquiring an additional 147,896 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.71% of International Flavors & Fragrances worth $131,222,000 at the end of the most recent quarter.
A number of other large investors have also recently bought and sold shares of the business. Invesco Ltd. lifted its position in International Flavors & Fragrances by 131.3% during the 3rd quarter. Invesco Ltd. now owns 7,167,176 shares of the specialty chemicals company’s stock worth $441,068,000 after acquiring an additional 4,069,075 shares during the period. Eurizon Capital SGR S.p.A. acquired a new stake in International Flavors & Fragrances in the fourth quarter valued at about $211,703,000. Ameriprise Financial Inc. boosted its holdings in International Flavors & Fragrances by 1,842.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,491,606 shares of the specialty chemicals company’s stock valued at $183,264,000 after purchasing an additional 2,363,307 shares in the last quarter. First Eagle Investment Management LLC increased its position in International Flavors & Fragrances by 27.5% during the 4th quarter. First Eagle Investment Management LLC now owns 8,831,668 shares of the specialty chemicals company’s stock worth $595,166,000 after purchasing an additional 1,904,598 shares during the period. Finally, Norges Bank acquired a new position in International Flavors & Fragrances during the 4th quarter worth approximately $113,284,000. Institutional investors and hedge funds own 96.02% of the company’s stock.
Insider Buying and Selling at International Flavors & Fragrances In related news, Director Paul J. Fribourg purchased 260,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was bought at an average cost of $74.28 per share, with a total value of $19,312,800.00. Following the completion of the acquisition, the director directly owned 2,682,730 shares in the company, valued at $199,273,184.40. The trade was a 10.73% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.07% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth A number of analysts recently weighed in on IFF shares. Citigroup decreased their price target on International Flavors & Fragrances from $96.00 to $88.00 and set a “buy” rating on the stock in a research note on Wednesday, June 24th. BNP Paribas Exane raised their target price on International Flavors & Fragrances from $85.00 to $95.00 in a report on Thursday, May 7th. JPMorgan Chase & Co. boosted their target price on shares of International Flavors & Fragrances from $90.00 to $92.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Benchmark initiated coverage on shares of International Flavors & Fragrances in a research note on Tuesday, June 9th. They set a “buy” rating and a $100.00 price target on the stock. Finally, Oppenheimer raised their price objective on shares of International Flavors & Fragrances from $88.00 to $90.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $91.16.
View Our Latest Report on IFF
International Flavors & Fragrances Price Performance International Flavors & Fragrances stock opened at $76.42 on Tuesday. The firm has a market capitalization of $19.51 billion, a PE ratio of 23.37, a P/E/G ratio of 1.90 and a beta of 0.93. International Flavors & Fragrances Inc. has a 52 week low of $59.14 and a 52 week high of $84.45. The firm’s 50-day simple moving average is $76.61 and its 200 day simple moving average is $74.73. The company has a quick ratio of 0.87, a current ratio of 1.49 and a debt-to-equity ratio of 0.33.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last announced its earnings results on Tuesday, May 5th. The specialty chemicals company reported $1.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.17. International Flavors & Fragrances had a net margin of 7.78% and a return on equity of 7.65%. The company had revenue of $2.74 billion during the quarter, compared to analysts’ expectations of $2.64 billion. During the same quarter in the previous year, the business posted $1.20 earnings per share. The firm’s quarterly revenue was down 3.6% compared to the same quarter last year. On average, equities research analysts predict that International Flavors & Fragrances Inc. will post 4.55 EPS for the current fiscal year.
International Flavors & Fragrances Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Thursday, June 18th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Thursday, June 18th. This represents a $1.60 annualized dividend and a yield of 2.1%. International Flavors & Fragrances’s dividend payout ratio (DPR) is presently 48.93%.
About International Flavors & Fragrances (Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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California Public Employees Retirement System raised its position in shares of International Flavors & Fragrances Inc. (NYSE:IFF – Free Report) by 3.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 392,499 shares of the specialty chemicals company’s stock after acquiring an additional 12,614 shares during the period. California Public Employees Retirement System owned approximately 0.15% of International Flavors & Fragrances worth $28,476,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors and hedge funds have also recently modified their holdings of the company. Assetmark Inc. increased its position in International Flavors & Fragrances by 42.1% in the first quarter. Assetmark Inc. now owns 29,263 shares of the specialty chemicals company’s stock worth $2,123,000 after purchasing an additional 8,674 shares during the last quarter. Bessemer Group Inc. lifted its position in International Flavors & Fragrances by 8.2% during the first quarter. Bessemer Group Inc. now owns 6,990 shares of the specialty chemicals company’s stock valued at $508,000 after purchasing an additional 529 shares during the last quarter. Wealthfront Advisers LLC grew its stake in shares of International Flavors & Fragrances by 22.8% in the 1st quarter. Wealthfront Advisers LLC now owns 17,732 shares of the specialty chemicals company’s stock worth $1,286,000 after buying an additional 3,298 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of International Flavors & Fragrances by 0.7% in the 1st quarter. Bank of New York Mellon Corp now owns 1,598,636 shares of the specialty chemicals company’s stock worth $115,981,000 after buying an additional 10,654 shares in the last quarter. Finally, Sanctuary Advisors LLC increased its holdings in shares of International Flavors & Fragrances by 11.3% in the 1st quarter. Sanctuary Advisors LLC now owns 16,421 shares of the specialty chemicals company’s stock worth $1,191,000 after buying an additional 1,673 shares during the last quarter. 96.02% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets A number of research analysts recently commented on the stock. Rothschild & Co Redburn lowered their price target on shares of International Flavors & Fragrances from $74.00 to $71.00 in a report on Friday, May 8th. Citigroup reduced their price objective on International Flavors & Fragrances from $96.00 to $88.00 and set a “buy” rating on the stock in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft lowered their price objective on International Flavors & Fragrances from $95.00 to $90.00 and set a “buy” rating for the company in a research note on Monday, June 1st. Jefferies Financial Group lifted their target price on International Flavors & Fragrances from $97.00 to $105.00 in a report on Thursday, May 7th. Finally, Weiss Ratings raised International Flavors & Fragrances from a “sell (d)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $91.16.
Read Our Latest Research Report on International Flavors & Fragrances
International Flavors & Fragrances Stock Performance International Flavors & Fragrances stock opened at $76.22 on Wednesday. International Flavors & Fragrances Inc. has a 1-year low of $59.14 and a 1-year high of $84.45. The company’s 50-day moving average is $76.55 and its 200 day moving average is $74.50. The firm has a market capitalization of $19.46 billion, a P/E ratio of 23.31, a price-to-earnings-growth ratio of 1.93 and a beta of 0.93. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.49 and a quick ratio of 0.87.
International Flavors & Fragrances (NYSE:IFF – Get Free Report) last released its earnings results on Tuesday, May 5th. The specialty chemicals company reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $1.08 by $0.17. International Flavors & Fragrances had a return on equity of 7.65% and a net margin of 7.78%.The firm had revenue of $2.74 billion for the quarter, compared to analysts’ expectations of $2.64 billion. During the same quarter in the prior year, the firm posted $1.20 earnings per share. The company’s quarterly revenue was down 3.6% on a year-over-year basis. Research analysts forecast that International Flavors & Fragrances Inc. will post 4.55 EPS for the current year.
International Flavors & Fragrances Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Thursday, June 18th were paid a $0.40 dividend. The ex-dividend date was Thursday, June 18th. This represents a $1.60 dividend on an annualized basis and a yield of 2.1%. International Flavors & Fragrances’s dividend payout ratio (DPR) is presently 48.93%.
Insiders Place Their Bets In related news, Director Paul J. Fribourg bought 260,000 shares of the stock in a transaction dated Monday, June 1st. The stock was purchased at an average cost of $74.28 per share, with a total value of $19,312,800.00. Following the completion of the purchase, the director owned 2,682,730 shares of the company’s stock, valued at $199,273,184.40. This trade represents a 10.73% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.07% of the stock is currently owned by insiders.
International Flavors & Fragrances Company Profile (Free Report)
International Flavors & Fragrances Inc (NYSE:IFF) is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.
IFF’s research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.
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NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) — a global leader in flavors, fragrances, and health and biosciences — today announced that it has entered into an agreement with SuanNutra, a Carbyne Equity Partners portfolio company and global provider of science-backed branded and functional ingredients, to sell its portfolio of botanical extracts, vitamins and minerals, and food enhancement activities, including its range of natural colors and antioxidants and certain localized flavor activities i.
, /PRNewswire/ -- SuanNutra, a global provider of science-backed branded and functional ingredients, and Carbyne Equity Partners today announced that SuanNutra has signed an agreement to acquire a portfolio of specialty natural ingredients businesses from IFF (NYSE: IFF). The businesses will merge with SuanNutra's existing operations to create an enlarged global group in science-backed natural ingredients. The transaction is expected to complete by the end of 2026, subject to regulatory clearances and customary closing conditions.
Positioned to be a new category leader
SuanNutra, a Carbyne Equity Partners Portfolio Company, Expands Product Portfolio with Specialty Natural Ingredients Businesses from IFF The combination is a transformational step for SuanNutra, delivering directly on its strategy of scaling nutraceutical science into measurable impact and expanding into food-enhancement ingredients.
The incoming businesses bring an expanded range of clinically supported branded ingredients and owned botanical extraction at source, scientifically backed fermented vitamins and minerals, together with plant-derived natural colours, antioxidants and flavours.
The combined manufacturing footprint spans botanical extraction in Spain, Slovenia and Peru and fermentation in the United States. The merged group will have around 700 employees serving more than 1,200 customers in over 60 countries. Customers will continue to be served seamlessly, without interruption, and the group will continue to invest in commercial capability, R&D and innovation across the enlarged group.
The newly combined entity strengthens SuanNutra's Visible Health strategy – clinically backed ingredients delivering wellness benefits consumers can see and feel. In food enhancement, the natural colours, antioxidants and flavours place the group at the centre of the industry's shift from synthetic dyes, preservatives and flavours to natural and clean-label ingredients.
A winning matchup of complementary expertise
Anthony Weston, Group CEO of SuanNutra, said: "The engaged, experienced people in these businesses know the products and customers deeply, and that expertise is central to everything we aspire to achieve. Together we will build, grow and transform this group into a stronger partner for our customers offering manufacturing at source, clinically proven ingredients, and a broad natural portfolio across nutraceuticals and food enhancement."
Yoni Glickman, Non-Executive Chairman of SuanNutra, added: "Clinically supported branded ingredients are where this industry is heading – proven actives with the science to stand behind them. This expansion puts SuanNutra at the forefront of this transition. The move from artificial colours and preservatives to natural, scientifically substantiated ingredients is reshaping the food and health industries faster than ever."
Markus Petersen, Managing Partner of Carbyne Equity Partners, explained: "SuanNutra has a clear strategy and a management team that understands these businesses and their markets. This merger creates a botanical-based ingredients group of genuine scale and scientific credibility, and we are pleased to back the team in building it. We look forward to the opportunities these teams and SuanNutra will create together."
Mai Karas, Investment Director of Carbyne Equity Partners, concluded: "Specialty ingredients are at the heart of Carbyne's investment strategy. This transaction brings a global range of natural ingredients into the group and deepens our focus on the sector."
HSF Kramer acted as legal counsel to SuanNutra and Carbyne and EY acted as financial advisor.
NEW YORK--(BUSINESS WIRE)---- $IFF--IFF (NYSE: IFF) today announced that it will release its second quarter 2026 earnings results following the market close on Tuesday, August 4, 2026. The management team will host a live webcast on Wednesday, August 5, 2026, at 9:00 a.m. ET to discuss results and outlook with the investor community. Investors may access the live webcast and accompanying slide presentation on the company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded.
Key Takeaways International Flavors launched SENSORA, a patent-pending pro-fragrance technology for lasting scents.IFF said that SENSORA extends fragrance up to 20 days post-activation across multiple applications.International Flavors introduced Floral Fusion for detergents with evolving floral notes on dry fabrics. International Flavors & Fragrances Inc. (IFF - Free Report) announced the launch of its advanced patent-pending pro-fragrance technology, SENSORA. This development is in sync with the rising demand for a longer-lasting scent.
Details of IFF’s SENSORAInternational Flavors is combining its deep expertise in fragrance design with pro-fragrance science to create SENSORA that will revolutionize the use of scent across home, fabric and personal care applications. The technology is designed to prolong fragrance well beyond wash, unveiling complex scent profiles over time and extending the scent for up to 20 days post-activation.
The company announced the launch of Floral Fusion, which is a light-activated pro-fragrance under the SENSORA portfolio. This is designed specifically for liquid detergents that provide a long-lasting, evolving scent experience by releasing refined floral notes on dry fabrics. This elevates the product's base fragrance profile.
International Flavors’ Q1 PerformanceIFF reported adjusted earnings of $1.25 per share in first-quarter 2026, up 4.2% year over year. The results beat the Zacks Consensus Estimate of $1.08 by 15.7%.
International Flavors’ quarterly net sales were $2.741 billion, down 3.6% from the year-ago period but beating the consensus mark of $2.65 billion by 3.4%. On a comparable currency-neutral basis, sales increased 3%, supported by volume gains across all four segments.
The Scent segment’s sales were $651 million, up 6% year over year. On a comparable basis, currency-neutral sales inched up 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. The adjusted operating EBITDA increased 5% year over year to $148 million.
IFF Stock’s Price PerformanceIn the past year, the company’s shares have gained 8.4% compared with the industry’s growth of 5.3%.
Image Source: Zacks Investment Research
International Flavors’ Zacks Rank & Stocks to ConsiderThe Zacks Consensus Estimate for Dow's current-year earnings is pegged at $2.61 per share, indicating a 377% year-over-year surge. DOW shares have gained 13.6% in a year.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 124% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 62.7% in a year.
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) — a global leader in flavors, fragrances, food ingredients and health and biosciences — today announced the launch of SENSORA™, its advanced patent-pending pro-fragrance technology designed to transform how scent is experienced across home, fabric and personal care applications. Developed to meet the rising demand for a longer-lasting and more sophisticated scent experience, SENSORA™ delivers an evolving olfactive profile with sustained release, extend.
VERSAILLES, France--(BUSINESS WIRE)--IFF — a global leader in flavors, fragrances, food ingredients and health & biosciences — celebrates the 10th anniversary of its industry-leading accredited master's-level program for scent design and creation, developed in partnership with ISIPCA, the world-renowned school for careers in perfume, cosmetics and food flavors. Since its launch in 2016, the IFF ISIPCA program has trained more than 180 professionals from 40 countries, with 130 graduates to d.
IFF — a global leader in flavors, fragrances, food ingredients and health & biosciences — celebrates the 10th anniversary of its industry-leading accredited master's-level program for scent design and creation, developed in partnership with ISIPCA, the world-renowned school for careers in perfume, cosmetics and food flavors. Since its launch in 2016, the IFF ISIPCA program has trained more than 180 professionals from 40 countries, with 130 graduates to date, and a 100% job landing rate up to six months after graduation.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260615461626/en/
The IFF ISIPCA Scent Design and Creation program has been pioneering fragrance education and excellence since 2016.
“Over the past decade, IFF ISIPCA has built a strong pipeline of diverse, high-potential fragrance experts, combining creative excellence, scientific expertise and a global perspective,” says Valery Claude, program sponsor and senior vice president of digital for IFF Scent. “The future looks bright with the next generation of scent talent who are poised to drive innovation across the industry.”
IFF ISIPCA is a breakthrough graduate program that offers a point of entry for careers in the field of scent. Combining IFF’s more than 135-year creative legacy and science-led innovation with ISIPCA’s academic excellence, the specialized scent design and creation program has expanded access to perfumery careers. The program prepares students for roles across fragrance development, marketing, sales and perfumery creation, helping build the future of fragrance.
The accredited program selects candidates based on olfactory ability, academic strength and individual talent — without requiring a scientific background — bringing greater diversity of perspectives to fragrance creation. Graduates have gone on to careers across the fragrance ecosystem, including at IFF (in Europe, Asia, the Middle East and the Americas) and in fast-moving consumer goods (FMCG) organizations, demonstrating the program’s impact.
“The program trains profiles that combine creativity, olfactory culture and technical expertise,” says Nicholas Salado, general director, ISIPCA. “It supports talents that are now fully integrated into the industry, aligned with its evolving challenges and dynamics.”
As the industry evolves, education, knowledge transfer and sustained innovation remain at the foundation of the IFF ISIPCA program. The 10-year anniversary milestone reflects IFF’s commitment to investing in the future of fragrance and driving innovation in olfactory experiences that make a meaningful impact for customers and consumers.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Consolidated Summary:
Reported
(GAAP)
Adjusted
(Non-GAAP)1
Sales
Income Before Taxes
EPS
Operating EBITDA
Operating EBITDA Margin
EPS ex Amortization
$2.7 B
$209 M
$0.66
$568 M
20.7%
$1.25
Management Commentary
“IFF is off to a solid start in 2026, with first quarter results that reflect the customer focus and operational execution we’ve been building across the company,” said Erik Fyrwald, CEO of IFF. “We delivered volume growth in all four segments, improved profitability, and generated strong cash flow in the first quarter.
As we look ahead, we are maintaining a disciplined approach to how we are planning the balance of the year as the current operating environment remains unsettled. We remained focused on advancing our commercial and innovation pipelines, driving productivity, and working with customers to offset inflation. This – when combined with our solid start to the year – derisks the balance of the year and gives us the confidence to reaffirm our full-year 2026 financial guidance ranges in an uncertain environment. At the same time, we are running a disciplined sale process for Food Ingredients to ensure we maximize value for shareholders.”
First Quarter 2026 Consolidated Financial Results
Reported net sales for the first quarter were $2.74 billion, a decrease of 4% versus the prior-year period. On a comparable basis2, currency neutral sales1 increased 3% versus the prior-year period with broad based growth across all businesses. Income before taxes on a reported basis for the first quarter was $209 million. Adjusted operating EBITDA1 for the first quarter was $568 million. On a comparable basis2, currency neutral adjusted operating EBITDA1 improved 8% versus the prior-year period, driven by volume growth and productivity gains. Reported earnings per share (EPS) for the first quarter was $0.66. Adjusted EPS excluding amortization1 was $1.25 per diluted share. Cash flows from operations for the first quarter were $257 million, increasing $130 million year-over-year, and free cash flow1 defined as cash flows from operations less capital expenditures totaled $92 million, increasing $144 million year-over-year. Total debt to trailing twelve months net income at the end of the first quarter was 7.2x. Net debt to credit adjusted EBITDA1 at the end of the first quarter was 2.5x. First Quarter 2026 Segment Summary: Growth vs. Prior Year
Reported
(GAAP)
Comparable Currency Neutral
(Non-GAAP)1 2
Adjusted
(Non-GAAP)1
Comparable Currency Neutral
Adjusted
(Non-GAAP)1 2
Sales
Sales
Operating
EBITDA
Operating
EBITDA
Taste
5%
2%
17%
18%
Health & Biosciences
10%
5%
11%
7%
Scent
6%
1%
3%
(2)%
Food Ingredients
5%
3%
3%
12%
Consolidated
(4)%
3%
(2)%
8%
Taste Segment
On a reported basis, first quarter sales were $656 million. On a comparable basis2, currency neutral sales1 increased 2% with broad-based growth in all regions. Taste adjusted operating EBITDA1 was $153 million and adjusted operating EBITDA margin1 was 23.3% in the first quarter. On a comparable basis2, currency neutral adjusted operating EBITDA1 increased 18% led by volume growth, favorable net pricing and productivity gains. Health & Biosciences Segment
On a reported basis, first quarter sales were $595 million. On a comparable basis2, currency neutral sales1 increased 5% with growth in nearly all businesses, led by Animal Nutrition and Food Biosciences. Health & Biosciences adjusted operating EBITDA1 was $153 million and adjusted operating EBITDA margin1 was 25.7% in the first quarter. On a comparable basis2, currency neutral adjusted operating EBITDA1 increased 7% primarily driven by volume growth. Scent Segment
On a reported basis, first quarter sales were $651 million. On a comparable basis2, currency neutral sales1 increased 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. Scent adjusted operating EBITDA1 was $148 million and adjusted operating EBITDA margin1 was 22.7% in the first quarter. On a comparable basis2, currency neutral adjusted operating EBITDA1 decreased (2)% as volume growth and productivity gains were more than offset by unfavorable price to input cost. Food Ingredients Segment
On a reported basis, first quarter sales were $839 million. On a comparable basis2, currency neutral sales1 increased 3% led by volume growth in nearly all businesses. Food Ingredients adjusted operating EBITDA1 was $114 million and adjusted operating EBITDA margin1 was 13.6% in the first quarter. On a comparable basis2, currency neutral adjusted operating EBITDA1 increased 12% driven by volume growth and productivity gains. Financial Guidance
The Company continues to expect full year 2026 sales to be in the range of $10.5 billion to $10.8 billion and full year 2026 adjusted operating EBITDA to be in the range of $2.05 billion to $2.15 billion. Full year guidance now includes two months (previously three months) of Soy Crush, Concentrates, and Lecithin business results with the divestiture closing on March 2, 2026 (previously expected to close on April 1, 2026).
The Company continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3% to 8%.
Based on recent market foreign exchange rates, the Company continues to expect that foreign exchange will have an approximately 1% positive impact on sales growth and have no impact on adjusted operating EBITDA growth in 2026.
The Company also continues to expect that divestitures will have an approximately 5% adverse impact on both sales and adjusted operating EBITDA growth in 2026.
Audio Webcast
A live webcast to discuss the Company’s first quarter 2026 financial results will be held on May 6, 2026, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company’s IR website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available on the Company’s website approximately one hour after the event and will remain available on IFF’s website for one year.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes statements that are not historical facts and are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the ongoing sale process for our Food Ingredients division), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the Company, are subject to change, and involve uncertainties that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.
The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.
We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.
Use of Non-GAAP Financial Measures
We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt to credit adjusted EBITDA.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors.
Comparable results for the first quarter exclude the impact of divestitures.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, divestiture costs, strategic initiatives costs, regulatory costs and other items.
Adjusted EPS ex Amortization excludes the impact of non-operational items including restructuring and other charges, divestiture costs, losses (gains) on business disposals, strategic initiatives costs, regulatory costs and other items that are not a part of recurring operations.
Free Cash Flow is operating cash flow (i.e., cash flow from operations) less capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items.
These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA under "Financial Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
International Flavors & Fragrances Inc.
Consolidated Statements of Income (Loss)
(Amounts in millions except per share data)
(Unaudited)
Three Months Ended March 31,
2026
2025
% Change
Net sales
$
2,741
$
2,843
(4
)%
Cost of sales
1,723
1,808
(5
)%
Gross profit
1,018
1,035
(2
)%
Research and development expenses
166
164
1
%
Selling and administrative expenses
427
461
(7
)%
Amortization of acquisition-related intangibles
146
143
2
%
Impairment of goodwill
—
1,153
NMF
Restructuring and other charges
6
17
(65
)%
Operating profit (loss)
273
(903
)
(130
)%
Interest expense
44
71
(38
)%
Losses on business disposals
7
—
NMF
Other expense, net
13
20
(35
)%
Income (loss) before taxes
209
(994
)
(121
)%
Provision for income taxes
39
23
70
%
Net income (loss)
170
(1,017
)
(117
)%
Net income attributable to non-controlling interests
1
1
—
%
Net income (loss) attributable to IFF shareholders
$
169
$
(1,018
)
(117
)%
Net income (loss) per share - basic and diluted
$
0.66
$
(3.98
)
Average number of shares outstanding - basic
256
256
Average number of shares outstanding - diluted
257
256
NMF Not meaningful
International Flavors & Fragrances Inc.
Condensed Consolidated Balance Sheets
(Amounts in millions)
(Unaudited)
March 31,
2026
December 31,
2025
Cash and cash equivalents
$
562
$
590
Receivables, net
1,830
1,731
Inventories
2,250
2,245
Assets held for sale
—
151
Prepaid expenses and other current assets
795
877
Total current assets
5,437
5,594
Property, plant and equipment, net
3,997
4,029
Goodwill and other intangibles, net
14,087
14,312
Other assets
1,623
1,604
Total assets
$
25,144
$
25,539
Short-term borrowings
$
1,078
$
1,254
Other current liabilities
2,567
2,679
Total current liabilities
3,645
3,933
Long-term debt
4,739
4,740
Non-current liabilities
2,607
2,680
Total Shareholders' equity including Non-controlling interests
14,153
14,186
Total liabilities and shareholders' equity
$
25,144
$
25,539
International Flavors & Fragrances Inc.
Consolidated Statements of Cash Flows
(Amounts in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
170
$
(1,017
)
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization
246
236
Deferred income taxes
(15
)
(61
)
Losses on business disposals
7
—
Stock-based compensation
16
19
Pension contributions
(5
)
(5
)
Impairment of goodwill
—
1,153
Changes in assets and liabilities, net of acquisitions:
Trade receivables
(107
)
(116
)
Inventories
(33
)
(92
)
Accounts payable
176
154
Accruals for incentive compensation
(140
)
(246
)
Other assets/liabilities, net
(58
)
102
Net cash provided by operating activities
257
127
Cash flows from investing activities:
Additions to property, plant and equipment
(165
)
(179
)
Net proceeds received from business disposals
198
—
Cash (paid) received on foreign currency forward contracts
(10
)
22
Net cash provided by (used in) investing activities
23
(157
)
Cash flows from financing activities:
Cash dividends paid to shareholders
(102
)
(102
)
Net (repayments) borrowings of commercial paper (maturities less than three months)
(160
)
292
Principal payments of debt
—
(16
)
Purchases of treasury stock
(35
)
—
Other, net
(4
)
(5
)
Net cash (used in) provided by financing activities
(301
)
169
Effect of exchange rate changes on cash and cash equivalents
(7
)
40
Net change in cash and cash equivalents
(28
)
179
Cash and cash equivalents at beginning of year
590
471
Cash and cash equivalents at end of period
$
562
$
650
The following table reconciles cash and cash equivalents between the Company's statement of cash flows for the periods ended March 31, 2026 and March 31, 2025 to the amounts reported on the Company's balance sheet:
AMOUNTS IN MILLIONS
March 31, 2026
December 31, 2025
March 31, 2025
December 31, 2024
Current assets
Cash and cash equivalents
$
562
$
590
$
613
$
469
Cash and cash equivalents included in Assets held for sale
—
—
37
2
Cash and cash equivalents
$
562
$
590
$
650
$
471
The Company had no restricted cash as of March 31, 2026 and December 31, 2025.
International Flavors & Fragrances Inc.
Reportable Segment Performance
(Amounts in millions)
(Unaudited)
Three Months Ended March 31, 2026
Taste
Food Ingredients
Health & Biosciences
Scent
Total
Net Sales
$
656
$
839
$
595
$
651
$
2,741
Cost of Sales
(375
)
(646
)
(327
)
(375
)
Research & development expenses
(43
)
(14
)
(55
)
(54
)
Selling & administrative expenses
(101
)
(99
)
(92
)
(92
)
Depreciation expense add-back (a)
16
34
32
18
Adjusted Operating EBITDA
$
153
$
114
$
153
$
148
$
568
Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA
$
568
Depreciation & Amortization
(246
)
Interest Expense
(44
)
Other Expense, net
(13
)
Restructuring and Other Charges (b)
(6
)
Losses on Business Disposals (d)
(7
)
Divestiture Costs (e)
(24
)
Strategic Initiative Costs (f)
(9
)
Regulatory Costs (g)
(10
)
Income Before Taxes
$
209
Segment Adjusted Operating EBITDA Margin
Taste
23.3
%
Food Ingredients
13.6
%
Health & Biosciences
25.7
%
Scent
22.7
%
Consolidated
20.7
%
International Flavors & Fragrances Inc.
Reportable Segment Performance
(Amounts in millions)
(Unaudited)
Three Months Ended March 31, 2025
Taste
Food Ingredients
Health & Biosciences
Scent
Pharma Solutions
Total
Net Sales
$
627
$
796
$
540
$
614
$
266
$
2,843
Cost of Sales
(377
)
(609
)
(298
)
(344
)
(180
)
Research & development expenses
(40
)
(12
)
(52
)
(55
)
(5
)
Selling & administrative expenses
(94
)
(92
)
(81
)
(86
)
(32
)
Depreciation expense add-back (a)
15
28
29
15
5
Adjusted Operating EBITDA
$
131
$
111
$
138
$
144
$
54
$
578
Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA
$
578
Depreciation & Amortization
(236
)
Interest Expense
(71
)
Other Expense, net
(20
)
Restructuring and Other Charges (b)
(17
)
Impairment of Goodwill (c)
(1,153
)
Divestiture Costs (e)
(51
)
Strategic Initiatives Costs (f)
(8
)
Regulatory Costs (g)
(11
)
Other (h)
(5
)
Loss Before Taxes
$
(994
)
Segment Adjusted Operating EBITDA Margin
Taste
20.9
%
Food Ingredients
13.9
%
Health & Biosciences
25.6
%
Scent
23.5
%
Pharma Solutions
20.3
%
Consolidated
20.3
%
(a)
There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results.
(b)
Represents costs related to severance as part of the IFF Productivity Program.
(c)
For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit.
(d)
For 2026, primarily represents losses recognized as part of the divestiture of the Soy, Concentrates and Lecithin disposal group.
(e)
For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(f)
Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(g)
Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
(h)
For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company, in addition to consulting costs related to the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework.
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
For the three months ended March 31, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
Reconciliation of Selling and Administrative Expenses
First Quarter
(DOLLARS IN MILLIONS)
2026
2025
Reported (GAAP)
$
427
$
461
Divestiture Costs (c)
(24
)
(51
)
Strategic Initiative Costs (e)
(9
)
(8
)
Regulatory Costs (f)
(10
)
(11
)
Other (g)
—
(6
)
Adjusted (Non-GAAP)
$
384
$
385
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Net Income (Loss) and EPS
First Quarter
2026
2025
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
Income (Loss) before taxes
Provision for income taxes (h)
Net income (loss) attributable to IFF (i)
Diluted EPS
(Loss) Income before taxes
Provision for income taxes (h)
Net (loss) income attributable to IFF (i)
Diluted EPS
Reported (GAAP)
$
209
$
39
$
169
$
0.66
$
(994
)
$
23
$
(1,018
)
$
(3.98
)
Restructuring and Other Charges (a)
6
2
4
0.02
17
4
13
0.05
Impairment of Goodwill (b)
—
—
—
—
1,153
7
1,146
4.48
Divestiture Costs (c)
24
5
19
0.07
51
12
39
0.15
Losses on Business Disposals (d)
7
1
6
0.02
—
—
—
—
Strategic Initiative Costs (e)
9
3
6
0.03
8
2
6
0.02
Regulatory Costs (f)
10
3
7
0.03
11
3
8
0.03
Other (g)
—
—
—
—
5
1
4
0.02
Adjusted (Non-GAAP)
$
265
$
53
$
211
$
0.83
$
251
$
52
$
198
$
0.77
Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization
First Quarter
(DOLLARS AND SHARE AMOUNTS IN MILLIONS)
2026
2025
Numerator
Adjusted (Non-GAAP) Net Income
$
211
$
198
Amortization of Acquisition related Intangible Assets
146
143
Tax impact on Amortization of Acquisition related Intangible Assets (h)
36
35
Amortization of Acquisition related Intangible Assets, net of tax (j)
110
108
Adjusted (Non-GAAP) Net Income ex. Amortization
$
321
$
306
Denominator
Weighted average shares assuming dilution (diluted)
257
256
Adjusted (Non-GAAP) EPS ex. Amortization
$
1.25
$
1.20
(a)
Represents costs related to severance as part of the IFF Productivity Program.
(b)
For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit.
(c)
For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(d)
For 2026, primarily represents losses recognized as part of the divestiture of the Soy, Concentrates and Lecithin disposal group.
(e)
Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(f)
For 2026 and 2025, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance business.
(g)
For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company, in addition to consulting costs related to the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework.
(h)
The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments.
(i)
For 2026 and 2025, reported and adjusted net income (loss) are each decreased by income attributable to non-controlling interest of $1 million.
(j)
Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances Inc.
Debt Covenants
(Amounts in millions)
(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Credit Adjusted EBITDA to Net Loss
(DOLLARS IN MILLIONS)
Twelve Months Ended March 31, 2026
Net income
$
815
Interest expense
202
Income taxes
(24
)
Depreciation and amortization
972
Specified items(1)
(178
)
Non-cash items(2)
307
Credit Adjusted EBITDA
$
2,094
Net Debt to Total Debt
(DOLLARS IN MILLIONS)
March 31, 2026
Total debt(1)
$
5,850
Adjustments:
Cash and cash equivalents
562
Net debt
$
5,288
International Flavors & Fragrances Inc.
Comparable Reportable Segment Performance
(Amounts in millions)
(Unaudited)
The following information and schedule provides reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedule is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Three Months Ended March 31,
2026
2025
Net Sales
Taste(1)
$
656
$
621
Food Ingredients(2)
839
779
Health & Biosciences
595
540
Scent
651
614
Pharma Solutions(3)
—
—
Consolidated
$
2,741
$
2,554
Segment Adjusted Operating EBITDA(5)
Taste(1)
$
153
$
125
Food Ingredients(2)
114
108
Health & Biosciences
153
135
Scent
148
141
Pharma Solutions(3)
—
—
Total
568
509
Depreciation & Amortization
(246
)
(236
)
Interest Expense
(44
)
(71
)
Other Expense, Net
(13
)
(20
)
Restructuring and Other Charges
(6
)
(17
)
Impairment of Goodwill
—
(1,153
)
Losses on Business Disposals
(7
)
—
Divestiture Costs
(24
)
(51
)
Strategic Initiative Costs
(9
)
(8
)
Regulatory Costs
(10
)
(11
)
Other
—
(5
)
Impact of Business Divestitures(4)
—
69
Income (Loss) Before Taxes
$
209
$
(994
)
Segment Adjusted Operating EBITDA Margin
Taste
23.3
%
20.1
%
Food Ingredients
13.6
%
13.9
%
Health & Biosciences
25.7
%
25.0
%
Scent
22.7
%
23.0
%
Consolidated
20.7
%
19.9
%
____________________ (1)
Taste sales and segment adjusted operating EBITDA information exclude the results of the Rene Laurent business that was divested on December 1, 2025, to present fully comparable scenarios.
(2)
Food Ingredients sales and segment adjusted operating EBITDA information exclude the results of the Soy Crush, Concentrates, and Lecithin business (the “SCL disposal group”) that was divested on March 2, 2026, to present fully comparable scenarios.
(3)
Pharma Solutions sales and segment adjusted operating EBITDA information exclude the results of the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios.
(4)
Amounts exclude the results of the Rene Laurent business that was divested on December 1, 2025, the SCL disposal group that was divested on March 2, 2026, and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios.
(5)
Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Food Ingredients, Health & Biosciences, and Scent segments.
For the Three Months Ended March 31, 2025
Selling & Administrative Expenses
Total EBITDA Impact
Taste
$
3
$
(3
)
Food Ingredients
4
(4
)
Health & Biosciences
3
(3
)
Scent
3
(3
)
Total
$
13
$
(13
)
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
Comparable Foreign Exchange Impact
(Unaudited)
Q1 2026 Taste
Sales
Segment Adjusted Operating EBITDA
Segment Adjusted Operating EBITDA Margin
% Change - Reported
5%
17%
2.4%
Portfolio Impact
1%
6%
0.8%
% Change - Comparable
6%
22%
3.2%
Currency Impact
(4)%
(4)%
(0.1)%
% Change - Currency Neutral
2%
18%
3.1%
Q1 2026 Food Ingredients
Sales
Segment Adjusted Operating EBITDA
Segment Adjusted Operating EBITDA Margin
% Change - Reported
5%
3%
(0.3)%
Portfolio Impact
2%
3%
0.0%
% Change - Comparable
8%
6%
(0.3)%
Currency Impact
(5)%
6%
1.5%
% Change - Currency Neutral
3%
12%
1.2%
Q1 2026 Health & Biosciences
Sales
Segment Adjusted Operating EBITDA
Segment Adjusted Operating EBITDA Margin
% Change - Reported
10%
11%
0.1%
Portfolio Impact
0%
2%
0.6%
% Change - Comparable
10%
13%
0.7%
Currency Impact
(5)%
(6)%
(0.1)%
% Change - Currency Neutral
5%
7%
0.6%
Q1 2026 Scent
Sales
Segment Adjusted Operating EBITDA
Segment Adjusted Operating EBITDA Margin
% Change - Reported
6%
3%
(0.8)%
Portfolio Impact
0%
2%
0.5%
% Change - Comparable
6%
5%
(0.3)%
Currency Impact
(5)%
(7)%
(0.5)%
% Change - Currency Neutral
1%
(2)%
(0.8)%
Q1 2026 Consolidated
Sales
Adjusted Operating EBITDA
Adjusted Operating EBITDA Margin
% Change - Reported
(4)%
(2)%
0.4%
Portfolio Impact
11%
13%
0.4%
% Change - Comparable
7%
12%
0.8%
Currency Impact
(4)%
(4)%
0.3%
% Change - Currency Neutral
3%
8%
1.1%
____________________ Note: The sum of these items may not foot due to rounding.
Food ingredients maker International Flavors & Fragrances beat Wall Street expectations for first-quarter sales and profit on Tuesday, helped by steady demand for its products.
For the quarter ended March 2026, International Flavors (IFF - Free Report) reported revenue of $2.74 billion, down 3.6% over the same period last year. EPS came in at $1.25, compared to $1.20 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.65 billion, representing a surprise of +3.44%. The company delivered an EPS surprise of +16.01%, with the consensus EPS estimate being $1.08.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how International Flavors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Health & Biosciences: $595 million versus $558.02 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.Net Sales- Scent: $651 million versus $645.55 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Net Sales- Taste: $656 million compared to the $645.93 million average estimate based on four analysts.Net Sales- Food Ingredients: $839 million versus $795.84 million estimated by four analysts on average.Adjusted Operating EBITDA- Health & Biosciences: $153 million versus $149.53 million estimated by four analysts on average.Adjusted Operating EBITDA- Food Ingredients: $114 million versus $108.21 million estimated by four analysts on average.Adjusted Operating EBITDA- Taste: $153 million versus the four-analyst average estimate of $135.15 million.Adjusted Operating EBITDA- Scent: $148 million compared to the $149.69 million average estimate based on four analysts.View all Key Company Metrics for International Flavors here>>>
Shares of International Flavors have returned -2.4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
International Flavors (IFF - Free Report) came out with quarterly earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.2 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.01%. A quarter ago, it was expected that this ingredients producer for food, cosmetics and consumer products industries would post earnings of $0.85 per share when it actually produced earnings of $0.8, delivering a surprise of -5.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
International Flavors, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $2.74 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.44%. This compares to year-ago revenues of $2.84 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
International Flavors shares have added about 4% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for International Flavors?While International Flavors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for International Flavors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $2.74 billion in revenues for the coming quarter and $4.42 on $10.65 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Neo Performance Materials Inc. (NOPMF - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +137.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Neo Performance Materials Inc.'s revenues are expected to be $130.33 million, up 7.2% from the year-ago quarter.
Key Takeaways IFF reported Q1 EPS of $1.25, beating estimates, with sales topping consensus despite a 3.6% YoY decline.IFF saw margin expansion and 11.6% EBITDA growth driven by productivity gains and broad volume increases.IFF reaffirmed 2026 guidance and is advancing Food Ingredients divestiture to unlock shareholder value. International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of $1.25 per share in first-quarter 2026, up 4.2% year over year. The result beat the Zacks Consensus Estimate of $1.08 by 15.7%.
Including one-time items, the company reported earnings of 66 cents per share against the prior-year quarter’s loss of $3.98.
International Flavors’ quarterly net sales were $2.741 billion, down 3.6% from the year-ago period but 3.4% above the $2.65 billion consensus mark. On a comparable currency-neutral basis, sales increased 3%, supported by volume gains across all four segments.
IFF's Q1 Margins Improved on Productivity GainsBelow the top line, IFF’s quarter reflected better operating execution despite the headline sales decline. In the reported quarter, IFF’s cost of goods sold was down 5% year over year to $1.7 billion. Gross profit dipped 1.6% to around $1 billion. The gross margin came in at 37.1% compared with 36.4% in the year-ago quarter.
Research and development expenses decreased 7.4% year over year to $427 million. Selling and administrative expenses inched up 1.2% to $166 million in the quarter. Adjusted operating EBITDA came in at $568 million, up 11.6% from the prior-year quarter’s $509 million. The adjusted operating EBITDA margin was 20.7% compared with the year-ago quarter’s 17.9%.
On a comparable currency-neutral basis, adjusted operating EBITDA improved 8% compared with the prior year, aided by volume growth and productivity gains.
International Flavors' Segments Show Broad Volume GrowthNet sales in the Taste segment increased 5.6% year over year to $656 million in quarter. The figure surpassed our estimate of $649 million. On a comparable basis, currency neutral sales rose 2% with broad-based growth in all regions. The segment’s adjusted operating EBITDA was $153 million, down 29% year over year. Our estimate for the segment’s adjusted EBITDA was $139 million.
Net sales in the Food Ingredients segment rose 7.7% year over year to $839 million in the March-ended quarter. The figure beat our estimate of $797 million. On a comparable basis, currency neutral sales rose 3% attributed to volume growth in nearly all businesses. The adjusted operating EBITDA was $114 million, up 5.6% year over year. Our estimate for the segment’s adjusted EBITDA was $118 million.
Sales generated in the Health & Bioscience segment were $595 million compared with the year-earlier quarter’s $540 million. Our estimate was $558 million. On a comparable basis, currency neutral sales were up 5% with growth in nearly all businesses, led by Animal Nutrition and Food Biosciences. The adjusted operating EBITDA was $153 million in the quarter, up 13.3% year over year. Our estimate for the segment’s adjusted EBITDA was $169 million.
The Scent segment’s sales were $651 million, up 6% year over year. Our projection was $637 million. On a comparable basis, currency neutral sales inched up 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. The adjusted operating EBITDA increased 5% year over year to $148 million. Our model had projected EBITDA of $158 million.
International Flavors' Cash Flow Rose, Leverage SteadyCash generation improved meaningfully with International Flavors generating $257 million in cash from operating activities in the first quarter, higher than $1.27 million in the prior-year quarter. Free cash flow was at $92 million after $165 million of capital expenditures.
IFF had cash and cash equivalents of $562 million at the end of the first quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at the quarter-end compared with $4.74 billion at the end of 2025. Net debt to credit adjusted EBITDA was 2.5x.
International Flavors Maintains 2026 GuidanceLooking ahead, IFF reaffirmed its full-year 2026 guidance despite what management described as an unsettled operating environment. The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.
International Flavors continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3-8%.
IFF's Food Ingredients Review and Portfolio ActionsPortfolio actions remained a key part of the quarter’s narrative. IFF said it is progressing a disciplined sale process for its Food Ingredients business as it works to maximize value for shareholders. The company also updated the timing assumptions embedded in its full-year view following the divestiture of its Soy Crush, Concentrates and Lecithin business, which closed on March 2, 2026.
IFF Stock’s Price PerformanceIn the past year, the company’s shares have lost 6% against the industry’s growth of 4.6%.
Image Source: Zacks Investment Research
International Flavors’ Zacks RankIFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Chemical - Specialty Stocks in Q1Linde plc (LIN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $4.33, up 10% from $3.95 a year ago. The figure topped the Zacks Consensus Estimate of $4.27 by 1.41%.
Total quarterly revenues of $8.78 billion rose 8% from $8.11 billion recorded in the year-ago period. The top line beat the Zacks Consensus Estimate of $8.51 billion by 3.17%. The strong quarterly results can be attributed to higher pricing and incremental project start-ups, which supported underlying growth.
PPG Industries, Inc. (PPG - Free Report) delivered adjusted earnings of $1.83 per share in the first quarter of 2026, up 6.4% year over year and in line with the Zacks Consensus Estimate.
Revenues came in at $3.93 billion, up 6.7% from the year-ago quarter and ahead of the consensus mark of $3.84 billion by 2.4%. Results benefited from higher selling prices and a sizable foreign currency translation lift, while organic sales increased 1% year over year.
The Sherwin-Williams Company (SHW - Free Report) reported first-quarter 2026 earnings of $2.15 per share, up 7.5% from the year-ago quarter figure of $2.
Barring one-time items, earnings were $2.35 per share. The bottom line beat the Zacks Consensus Estimate of $2.24, delivering an earnings surprise of 4.9%.
Revenues were $5.67 billion, up 6.8% year over year and ahead of the Zacks Consensus Estimate of $5.57 billion. Net income rose 6.1% to $534.7 million, representing 9.4% of net sales, as management pointed to growth initiatives and share gains despite soft demand conditions. Sherwin-Williams attributed the improvement primarily to higher sales and moderating raw material costs, partially offset by the dilutive impact of the Suvinil acquisition.
Advancing sustainable, high-quality naturals through end‑to‑end stewardship
GRASSE, France--(BUSINESS WIRE)--LMR Naturals by IFF — a global leader in natural ingredients for perfumery, cosmetics and flavors — will debut its latest innovations at the International Exhibition of Raw Materials for Perfumery (SIMPPAR), May 26–27 in Grasse. During the industry event, IFF will unveil new additions to its LMR Hearts collection, highlighting its naturals expertise and pioneering science.
“Responsible innovation has always been central to LMR,” said Bertrand de Préville, general manager of LMR. “Our strength lies in our ability to master the full range of natural technologies to support perfumers’ creativity. We’re connecting nature, science and creation to drive sustainable growth and deliver added value to our customers at global scale.”
Four New LMR Hearts Introduced at SIMPPAR
LMR Naturals’ new LMR Hearts, each developed through long‑term sourcing partnerships, sustainable agricultural practices and precision molecular distillation and fractionation at LMR’s Grasse site include:
Lavandin Heart France, with a strong coumarin profile for a more gourmand note Armoise Heart Morocco, which is richer in thujones for a fresher, more diffusive impact Ylang Heart Madagascar, offering a unique “extra grade”, creamy and solar olfactive profile Geranium Heart Egypt, featuring a fruity-lychee profile without conventional minty aspects “These new Hearts illustrate how science and sourcing expertise can elevate natural ingredients,” said Bernard Blerot, VP R&D Naturals at IFF. “They provide greater purity and focus while maintaining the integrity of the natural material and demonstrate our team’s scientific stewardship.”
Natural Ingredients Innovation
The four LMR Hearts launched at SIMPPAR follow several natural ingredient innovations introduced earlier this year, including:
Tonka Bean CO₂ Absolute, produced using renewable supercritical CO₂ extraction at LMR’s Aumont‑Aubrac facility in France Osmanthus Absolute Fruity China, a fruit‑forward interpretation developed as a captive natural for IFF perfumers Pulpextract™ Passion Fruit and Raspberry, two new fruit ingredients offering vivid, juicy profiles exclusively for IFF perfumers Each new natural ingredient responds to sustained consumer interest in fruity and gourmand fragrance notes, which IFF insights show make up a significant and enduring share of women’s fragrances. LMR strives to continuously expand the perfumer’s palette with naturals that combine innovation, sustainability and olfactive expression.
These launches support IFF’s 25‑year investment in LMR and sustainable, natural materials, embedding pioneering science — from seed and cultivation to harvesting and extraction — in perfumers' creativity at scale. In late May, IFF will further strengthen this integrated ecosystem with the inauguration of the Domaine des Naturals LMR in Grasse, a dedicated experimental field for raw materials that underscores its long‑term commitment to the future of naturals and innovation.
LMR Naturals’ integrated natural ingredients platform combines long‑term sourcing partnerships, agronomy‑led sustainability programs and internally operated extraction technologies — including molecular distillation, fractionation, CO₂ extraction and more. By operating these technologies on its own sites, LMR Naturals and its internal team of experts can focus on the most desirable olfactive molecules as selected by perfumers. With this approach, LMR Naturals delivers traceable, sustainable and performance‑driven natural ingredients for fine fragrance and other applications.
About LMR Naturals by IFF
Founded in 1983 by Monique Rémy and acquired by IFF in 2000, LMR Naturals is a trademarked capability within IFF dedicated to the development of high‑quality, innovative and sustainably sourced natural ingredients. LMR Naturals supports perfumers worldwide with a broad portfolio of naturals across fine fragrance, beauty, personal care, home care and flavorists with taste applications.
For more information, visit https://www.iff.com/scent/lmr-naturals/.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love — advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 SharesMarketBeat
CocaCola Company (The) (NYSE:KO - Get Free Report) EVP Jennifer Mann sold 23,984 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the transaction, the executive vice president owned 157,400 shares of the company's stock, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
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Read CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 Shares
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Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,054 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $60.37, for a total transaction of $15,759,829.98. Following the completion of the sale, the insider owned 2,671,855 shares in the company, valued at $161,299,886.35. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
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Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the transaction, the insider owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
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Travis Boersma Sells 749,999 Shares of Dutch Bros (NYSE:BROS) StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 749,999 shares of Dutch Bros stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $60.39, for a total transaction of $45,292,439.61. Following the completion of the sale, the chairman owned 2,671,855 shares of the company's stock, valued at $161,353,323.45. This represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Advancing science‑led flavor innovation where vanilla is grown
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF)—a global leader in flavors, fragrances, food ingredients, health & bioscience—today announced the opening of its Vanilla Innovation Center in Madagascar, reinforcing vanilla as a strategic and priority tonality for IFF and strengthening its ability to innovate at origin.
“The opening of the center marks an important step in how we approach vanilla innovation,” said Adam Jańczuk, Ph.D., senior vice president, research, creation and design, Taste, IFF. “By strengthening our presence at origin, we connect science, creativity and sustainability more closely, responding to climate changes, safeguarding quality and creating value across the supply chain.”
Located in Toamasina, Madagascar’s principal seaport, near vanilla growing areas and post‑harvest processing activities, the 650‑square‑meter center brings together lab analysis, extraction, scent and flavor creation, and application development in a single site. By embedding these capabilities close to the crop, IFF can better understand natural variability and translate on‑the‑ground insights into tailored solutions for customers globally.
As one of the world’s most complex natural ingredients, vanilla is shaped by climate, post‑harvest handling and curing methods. The innovation space supports IFF’s ability to follow the ingredient’s journey from origin extraction and in‑field testing, through advanced lab analysis to flavor creation—providing a seamless path that deepens material understanding, shortens development cycles and enables solutions informed by real crop conditions.
Innovating at origin strengthens sustainability and resilience across the vanilla supply and value chain. Proximity to growing areas enables closer collaboration with farmer networks, improved traceability and ethical sourcing, and a faster response to climate‑related changes. This direct connection between growing conditions and flavor design strengthens the foundation for innovation, delivering better‑tasting vanilla with greater consistency in quality and supply, while helping customers bring distinctive vanilla experiences to market with confidence.
The Vanilla Innovation Center features:
Lab analysis capabilities that apply contaminant and disease-detection protocols to safeguard product integrity, alongside molecular profiling to decode and develop distinctive IFF signatures Extraction facilities with scalable rigs to explore vanilla types and optimize extraction and post-harvest variables Flavor creation unit that enables tailored regional profiles, including Application Lab capabilities for dairy, bakery and confectionery to validate performance in real market prototypes The Bloomery, a research greenhouse showcasing diverse vanilla varieties and supporting future exploration of varietal performance and post-harvest techniques The Vanilla Innovation Center also serves as a hub for knowledge sharing and capability building. Together with the dedicated RE-MASTER VANILLA™ team, it delivers hands‑on training, workshops and laboratory programs that bring together experts, customers and local teams—advancing best practices and strengthening vanilla innovation capabilities.
“This center is built to turn insight into action,” said Marcus Pesch, vice president, research and development, Taste, IFF. “By bringing science, flavor creation and application development together at origin, we can work more collaboratively with customers, improve speed and consistency, and deliver solutions that are market‑ready and grounded in the realities of vanilla production.”
Fully integrated into IFF’s global vanilla network, the Madagascar facility complements existing capabilities across sourcing, extraction, flavor design and application development. Discoveries generated at the hub will translate into new tools, insights and capabilities for IFF’s creation teams. This enables flavors to be crafted in each region according to local consumer preferences, while supporting a more resilient and sustainable future for one of the world’s most valued natural ingredients.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
This is business-to-business information intended for food and supplement producers and is not intended for the final consumer. This information is based on our own research and development work and is, to the best of our knowledge, reliable. However, nothing herein shall constitute a guarantee or warranty with respect to products of IFF or its affiliates or information contained herein and IFF does not assume any liability or risk involved in the use of its products or the information contained herein, as conditions of use are beyond our control. Statements concerning possible use of products of IFF or its affiliates are not to be construed as recommendations for any use which would violate any patent rights, regulations or statutory restrictions. Manufacturers should check local regulatory status of any claims according to the intended use of their product.
Have you evaluated the performance of International Flavors' (IFF - Free Report) international operations during the quarter that concluded in March 2026? Considering the extensive worldwide presence of this ingredients producer for food, cosmetics and consumer products industries, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into IFF's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The recent quarter saw the company's total revenue reaching $2.74 billion, marking a decline of 3.6% from the prior-year quarter. Next, we'll examine the breakdown of IFF's revenue from abroad to comprehend the significance of its international presence.
A Dive into IFF's International Revenue TrendsEurope, Africa and Middle East accounted for 34.6% of the company's total revenue during the quarter, translating to $949 million. Revenues from this region represented a surprise of +3.34%, with Wall Street analysts collectively expecting $918.31 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Africa and Middle East contributed $889 million (34.3%) and $952 million (33.5%) to the total revenue, respectively.
Of the total revenue, $348 million came from Latin America during the last fiscal quarter, accounting for 12.7%. This represented a surprise of -1.02% as analysts had expected the region to contribute $351.57 million to the total revenue. In comparison, the region contributed $343 million, or 13.3%, and $353 million, or 12.4%, to total revenue in the previous and year-ago quarters, respectively.
Greater Asia generated $656 million in revenues for the company in the last quarter, constituting 23.9% of the total. This represented a surprise of +5.58% compared to the $621.35 million projected by Wall Street analysts. Comparatively, in the previous quarter, Greater Asia accounted for $612 million (23.6%), and in the year-ago quarter, it contributed $670 million (23.6%) to the total revenue.
Revenue Forecasts for the International MarketsWall Street analysts expect International Flavors to report a total revenue of $2.73 billion in the current fiscal quarter, which suggests a decline of 1.1% from the prior-year quarter. Revenue shares from Europe, Africa and Middle East, Latin America and Greater Asia are predicted to be 34%, 13%, and 23%, corresponding to amounts of $928.87 million, $355.61 million, and $628.5 million, respectively.
For the full year, a total revenue of $10.7 billion is expected for the company, reflecting a decline of 1.7% from the year before. The revenues from Europe, Africa and Middle East, Latin America and Greater Asia are expected to make up 34.3%, 13.1%, and 23.2% of this total, corresponding to $3.67 billion, $1.4 billion, and $2.48 billion, respectively.
Key TakeawaysInternational Flavors' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At the moment, International Flavors has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceThe stock has witnessed an increase of 11.8% over the past month versus the Zacks S&P 500 composite's an increase of 9.1%. In the same interval, the Zacks Basic Materials sector, to which International Flavors belongs, has registered an increase of 0.7%. Over the past three months, the company's shares saw a decrease of 2.4%, while the S&P 500 increased by 7.1%. In comparison, the sector experienced an increase of 1.6% during this timeframe.
Key Takeaways IFF targets growth from rising flavors and fragrances demand, especially in emerging markets.International Flavors completed key divestitures to sharpen focus on core high-return businesses.IFF cut net debt leverage to 2.5X and returned $137M via dividends and share repurchases. International Flavors & Fragrances Inc. (IFF - Free Report) is well-positioned to benefit from demand for a variety of consumer products containing flavors and fragrances going forward. Its disciplined approach to capital allocation is expected to drive growth in the upcoming years.
The company is simplifying its portfolio, including the completed soy business divestiture and an active Food Ingredients sale process, which could support deleveraging and focus investment on core businesses in the upcoming years.
What Aids IFF’s Stock?Demand for Flavors & Fragrances: International Flavors is well-positioned to benefit from demand for a variety of consumer products containing flavors and fragrances going forward. Anticipated growth in emerging markets will likely be a key catalyst.
Moreover, International Flavors is focused on gaining share in emerging markets. Backed by the company’s global presence, diversified business platform, broad product portfolio, and global and regional customer base, it will be able to capitalize on the expansion in flavors and fragrances markets. This is expected to help the company deliver long-term growth. Its focus on driving greater efficiencies throughout the business through costs and productivity initiatives, margin improvement and acquisition-related synergies continues to drive profits.
Strategic Portfolio Actions: To drive growth, the company plans to step up its investment in high-return businesses such as Flavors, Fragrances, Health, Cultures & Food Enzymes. In May 2025, International Flavors completed the divestiture of its Pharma Solutions business unit to Roquette and its nitrocellulose business to Czechoslovak Group.
At the beginning of the first quarter of 2025, the company separated its Nourish segment into the Taste and Food Ingredients segments as a part of a broader strategy to reorganize businesses around end markets. Portfolio actions remained a key part of the company’s first-quarter narrative. In March 2026, it completed the sale of its commodity soy crush, concentrates and lecithin business to Bunge for $110 million. This aligns with International Flavors’ portfolio optimization goals and includes evaluating strategic alternatives for the Food Ingredients segment.
It is now progressing with a disciplined sales process for its Food Ingredients business, as it works to maximize value for shareholders. These endeavors will enable the company to focus on its core business operations, strengthen its balance sheet and maximize shareholder returns.
Disciplined Capital Allocation: International Flavors continues to maintain a disciplined approach to capital allocation even as it focuses on accelerating growth through organic investments and strategic acquisitions, while returning significant capital to shareholders. It continues to effectively manage its balance sheet by taking necessary actions to generate strong cash flow and maintain ample liquidity by reducing operational and capital expenses.
The company ended the first quarter of 2026 with a net debt to credit-adjusted EBITDA of 2.5X, a significant reduction from 3.9X in 2025. The company returned $102 million via dividends and repurchased $35 million of shares, while management reiterated a disciplined capital allocation framework anchored around maintaining leverage near current levels.
Near-Term Concerns for International FlavorsThe company highlighted that its most direct exposure to the Middle East conflict sits in the Scent business, particularly Fine Fragrance. It expects Fine Fragrance volumes in the Middle East to be affected in the second quarter of 2026 due to slower demand and temporary customer supply chain issues, such as getting packaging into the region. This is likely to impact the company’s second-quarter margins.
International Flavors continues to incur high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost reduction efforts, these factors are likely to dent margins for the balance of the year. International Flavors’ manufacturing expenses are expected to increase to support higher demand.
IFF Stock’s Price PerformanceIn the past year, the company’s shares have gained 2.9% compared with the industry’s growth of 5%.
Image Source: Zacks Investment Research
International Flavors’ Zacks Rank & Stocks to ConsiderInternational Flavors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB sports a Zacks Rank #1 (Strong Buy) at present, while APD and ASM carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have soared 203.1% so far this year.
The Zacks Consensus Estimate for Air Products and Chemicals’ current-year earnings is pegged at $13.20 per share, indicating a 9.7% year-over-year rise. APD has an average trailing four-quarter earnings surprise of 2.9%. Air Products and Chemicals’ shares have gained 10.1% in a year’s time.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 113.4% in a year’s time.
Furthering IFF’s leadership in natural ingredients for perfumery.
GRASSE, France--(BUSINESS WIRE)--LMR Naturals by IFF—a global leader in natural ingredients for perfumery, cosmetics and flavors—today inaugurated its new experimental field, Domaine des Naturels LMR. The field is dedicated to advancing research in natural ingredients, preserving Grasse’s agricultural heritage and expanding education in naturals. The inauguration, attended by Grasse Mayor Jérôme Viaud, a long-standing supporter of the perfume industry, underscores IFF and LMR’s ongoing commitment to the region.
“This inauguration reflects over two decades of continuous investment in Grasse and in naturals,” said Ana Paula Mendonça, president, Scent, IFF. “With Domaine des Naturels LMR, we are bringing together innovation, preservation and knowledge sharing to shape the next chapter of natural ingredients, powered by deep scientific expertise and a truly global innovation network. What matters most is what this unlocks for our customers: more creative freedom, more distinctive ingredients, and ultimately true differentiation.”
Driving sustainable innovation in naturals
The 1.8-hectare experimental field operates as an integrated research and development platform. Located near LMR’s Grasse headquarters and its high-end creation site, L’Atelier du Parfumeur, Domaine des Naturels LMR enables a seamless approach from seed to fragrance.
Sabrya Meflah, president of fine fragrance, Scent, IFF, said, “The Domaine des Naturels LMR is a fantastic creative playground for our artists of perfumery to find inspiration and invent the signatures of tomorrow, building on our unique Grasse and global innovation ecosystem.”
Acquired by IFF in 2025, the field builds on the legacy of pioneering farmer Constant Viale, its former owner. Domaine des Naturels LMR maintains a collection of endemic species, including rose, jasmine, tuberose, iris, narcissus and olive trees. Combining traditional cultivation methods with advanced agronomic approaches, LMR continues to protect and develop Grasse’s distinctive know-how. Terraced farming, organic practices and biodiversity initiatives help preserve both the landscape and its ecological balance.
The experimental field allows local teams to explore plant varieties, refine cultivation techniques and assess bio-based inputs under real-world conditions. By integrating agronomy, extraction and perfumery—supported by a multidisciplinary team of more than 10 botanical experts—LMR enhances its ability to design, validate and scale distinctive natural raw materials while supporting more resilient agricultural systems. With a comprehensive approach to sustainability, the field includes diversified water sourcing, support for pollinators and the development of habitats for local wildlife, further strengthening LMR’s long-standing commitment to environmental stewardship.
Stewardship and education
Domaine des Naturels LMR also serves as an immersive environment dedicated to natural ingredients education, offering customers, partners and perfumers direct insight into the realities of sourcing and cultivating natural materials.
The site will gradually host the LMR Naturals Academy, with training programs and hands-on experiences to deepen expertise and ensure the transmission of this specialized knowledge.
“By bringing together innovation, heritage and education, LMR Naturals by IFF continues to shape what comes next for naturals,” said Bertrand de Préville, general manager of LMR Naturals by IFF. “We’re anchored in Grasse, connected to a global network and driven by a long-term vision.”
Since acquiring LMR Naturals in 2000, IFF has steadily invested in Grasse. Building on the pioneering vision of LMR founder Monique Rémy, this sustained commitment continues to elevate standards in natural ingredients by blending science, agriculture and the art of perfumery. It also anchors Grasse within a global research network spanning Brazil, the United States, Asia and beyond, enabling knowledge generated at Domaine des Naturels LMR to extend across IFF’s 14 innovation platforms worldwide.
About LMR Naturals by IFF
Founded in 1983 by Monique Rémy and acquired by IFF in 2000, LMR Naturals is a trademarked capability within IFF dedicated to the development of high‑quality, innovative and sustainably sourced natural ingredients. LMR Naturals supports perfumers worldwide with a broad portfolio of naturals across fine fragrance, beauty, personal care, home care and flavorists with taste applications. For more information, visit https://www.iff.com/scent/lmr-naturals/.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
LMR Naturals by IFF—a global leader in natural ingredients for perfumery, cosmetics and flavors—today inaugurated its new experimental field, Domaine des Naturels LMR. The field is dedicated to advancing research in natural ingredients, preserving Grasse’s agricultural heritage and expanding education in naturals. The inauguration, attended by Grasse Mayor Jérôme Viaud, a long-standing supporter of the perfume industry, underscores IFF and LMR’s ongoing commitment to the region.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260527694524/en/
At Domaine des Naturels LMR, R&D experts research new natural species, variety breeding, cultivation methods and production techniques.
“This inauguration reflects over two decades of continuous investment in Grasse and in naturals,” said Ana Paula Mendonça, president, Scent, IFF. “With Domaine des Naturels LMR, we are bringing together innovation, preservation and knowledge sharing to shape the next chapter of natural ingredients, powered by deep scientific expertise and a truly global innovation network. What matters most is what this unlocks for our customers: more creative freedom, more distinctive ingredients, and ultimately true differentiation.”
Driving sustainable innovation in naturals
The 1.8-hectare experimental field operates as an integrated research and development platform. Located near LMR’s Grasse headquarters and its high-end creation site, L’Atelier du Parfumeur, Domaine des Naturels LMR enables a seamless approach from seed to fragrance.
Sabrya Meflah, president of fine fragrance, Scent, IFF, said, “The Domaine des Naturels LMR is a fantastic creative playground for our artists of perfumery to find inspiration and invent the signatures of tomorrow, building on our unique Grasse and global innovation ecosystem.”
Acquired by IFF in 2025, the field builds on the legacy of pioneering farmer Constant Viale, its former owner. Domaine des Naturels LMR maintains a collection of endemic species, including rose, jasmine, tuberose, iris, narcissus and olive trees. Combining traditional cultivation methods with advanced agronomic approaches, LMR continues to protect and develop Grasse’s distinctive know-how. Terraced farming, organic practices and biodiversity initiatives help preserve both the landscape and its ecological balance.
The experimental field allows local teams to explore plant varieties, refine cultivation techniques and assess bio-based inputs under real-world conditions.By integrating agronomy, extraction and perfumery—supported by a multidisciplinary team of more than 10 botanical experts—LMR enhances its ability to design, validate and scale distinctive natural raw materials while supporting more resilient agricultural systems. With a comprehensive approach to sustainability, the field includes diversified water sourcing, support for pollinators and the development of habitats for local wildlife, further strengthening LMR’s long-standing commitment to environmental stewardship.
Stewardship and education
Domaine des Naturels LMR also serves as an immersive environment dedicated to natural ingredients education, offering customers, partners and perfumers direct insight into the realities of sourcing and cultivating natural materials.
The site will gradually host the LMR Naturals Academy, with training programs and hands-on experiences to deepen expertise and ensure the transmission of this specialized knowledge.
“By bringing together innovation, heritage and education, LMR Naturals by IFF continues to shape what comes next for naturals,” said Bertrand de Préville, general manager of LMR Naturals by IFF. “We’re anchored in Grasse, connected to a global network and driven by a long-term vision.”
Since acquiring LMR Naturals in 2000, IFF has steadily invested in Grasse. Building on the pioneering vision of LMR founder Monique Rémy, this sustained commitment continues to elevate standards in natural ingredients by blending science, agriculture and the art of perfumery. It also anchors Grasse within a global research network spanning Brazil, the United States, Asia and beyond, enabling knowledge generated at Domaine des Naturels LMR to extend across IFF’s 14 innovation platforms worldwide.
About LMR Naturals by IFF
Founded in 1983 by Monique Rémy and acquired by IFF in 2000, LMR Naturals is a trademarked capability within IFF dedicated to the development of high‑quality, innovative and sustainably sourced natural ingredients. LMR Naturals supports perfumers worldwide with a broad portfolio of naturals across fine fragrance, beauty, personal care, home care and flavorists with taste applications. For more information, visit https://www.iff.com/scent/lmr-naturals/.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
Transaction advances portfolio transformation, sharpens focus on higher-growth, higher-margin businesses, strengthens balance sheet, and enhances value creation for shareholders
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF), a global leader in flavors, fragrances, food ingredients, and health and biosciences, today announced that it has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners, a leading global private markets manager, in a transaction that values the business at approximately $4.3 billion, representing an enterprise value-to-EBITDA multiple of approximately 10x. As part of the transaction, IFF has chosen to retain an approximately 10% minority equity interest in the business, or approximately $200 million, permitting continued collaboration and cooperation between IFF and Food Ingredients and allowing IFF and its shareholders to participate in future value creation under its new ownership.
The transaction marks a significant step in IFF’s portfolio transformation and is expected to strengthen the company’s focus on its innovation-driven businesses: Taste, Scent, and Health & Biosciences. Following the transaction, IFF will be a more focused company with improved cash flow characteristics, greater financial flexibility, and a stronger position to achieve its growth and profitability objectives.
“This transaction represents an important strategic milestone in our ongoing portfolio optimization initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments,” said Erik Fyrwald, CEO of IFF. “By simplifying our portfolio to where we can create the greatest value, IFF will accelerate innovation, drive investment in R&D, and further integrate our biotechnology and naturals capabilities more effectively across our global platform. Importantly, by retaining a minority stake in Food Ingredients, we will continue to participate in the future upside of a strong business under dedicated ownership. This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.”
IFF’s Food Ingredients business is a globally recognized leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients serving multinational food and beverage customers. In 2025, the Food Ingredients business that will be divested generated nearly $3.1 billion in annual sales and approximately $430 million of EBITDA.
“We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business,” Fyrwald added. “We are confident CVC is the right owner for its next chapter and that this transaction creates significant value for IFF shareholders while giving Food Ingredients an excellent platform for future success.”
“We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. portfolio,” said Lorne Somerville, managing partner and co-head of North American private equity at CVC. “The business has built a strong position in an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean-label products. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth.”
James Christopoulos, partner at CVC, added: “The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth. We look forward to partnering with the team and with IFF as co-shareholders to accelerate the next phase of growth through scale and commercial expansion.”
Transaction Benefits and Portfolio Positioning
Over the last several years, IFF has taken decisive action to simplify its portfolio, sharpen strategic focus, and strengthen its financial foundation. Including this transaction, IFF has divested 13 non-core businesses, generating nearly $10 billion in gross proceeds, which have supported balance sheet improvement and reinvestment in the company’s highest-return businesses.
Upon completion of the Food Ingredients transaction, IFF will be centered on three market-leading businesses serving attractive end markets supported by long-term megatrends in health, well-being, food, and sustainability. Each business is well positioned for strong revenue and EBITDA growth opportunities and powered by shared naturals and biosciences capabilities:
Taste: Unique, technology-enabled flavor solutions for global food and beverage customers Scent: Leading positions in fine fragrance, consumer fragrance across personal and home care categories, and fragrance ingredients Health & Biosciences: Innovation-led solutions spanning probiotics, enzymes, cultures, and bioactive health ingredients With a more streamlined portfolio, IFF expects to be better positioned to accelerate innovation, improve execution, enhance free cash flow conversion, and deliver a stronger long-term financial profile. Over time, in a normalized environment, IFF expects to achieve mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth, underpinned by the differentiated and innovation-led nature of its remaining business.
Use of Proceeds and Financial Impact
IFF expects to receive net cash proceeds of approximately $3.8 billion at closing, reflecting the rolled-over equity, customary purchase price adjustments, costs incurred to stand up and carve out the business and taxes. The company intends to prioritize use of proceeds toward:
Debt reduction to accelerate deleveraging and reinforce balance sheet strength Targeted share repurchases, as authorized by the Board of Directors Reinvestment in high-return growth and high-return opportunities across the core portfolio The transaction is expected to be dilutive to adjusted EPS in the first 12 months following closing, prior to the benefits from capital deployment and any actions to address stranded overhead costs. IFF believes the strategic and financial benefits of a more focused portfolio, stronger balance sheet and improved cash generation profile outweigh the near-term earnings impact. Furthermore, the company has implemented a plan to address all of the stranded overhead costs that are a consequence of the transaction. IFF is also reiterating its previously communicated full-year 2026 guidance ranges. The company expects full year 2026 sales to be in the range of $10.5 billion to $10.8 billion and full year 2026 adjusted operating EBITDA to be in the range of $2.05 billion to $2.15 billion. IFF continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3% to 8%.
Transaction Details
The transaction is expected to close by the end of the second quarter of 2027, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals, where required. As part of the retained 10% equity interest, IFF will also hold a board seat in the new company.
J.P. Morgan Securities LLC (lead) and BofA Securities are serving as IFF’s financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates is serving as legal advisor.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes statements that are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the anticipated closing date of the sale of our Food Ingredients division), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the company, are subject to change, and involve uncertainties that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) 4 volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.
The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.
We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.
Use of Non-GAAP Financial Measures
We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; and (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors.
Comparable results exclude the impact of divestitures.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, divestiture costs, strategic initiatives costs, regulatory costs and other items.
These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA under “Use of Proceeds and Financial Impact” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
About CVC
CVC is a leading global private markets manager with a network of 29 office locations throughout EMEA, the Americas, and Asia, with approximately €209 billion of assets under management. CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, for which CVC funds have secured commitments of over €257 billion from some of the world's leading pension funds and other institutional investors. Funds managed or advised by CVC’s private equity strategy are invested in approximately 150+ companies worldwide, which have combined annual sales of over €240 billion and employ over 660,000 people. For further information about CVC please visit: https://www.cvc.com/. Follow us on LinkedIn.
IFF (NYSE: IFF), a global leader in flavors, fragrances, food ingredients, and health and biosciences, today announced that it has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners, a leading global private markets manager, in a transaction that values the business at approximately $4.3 billion, representing an enterprise value-to-EBITDA multiple of approximately 10x. As part of the transaction, IFF has chosen to retain an approximately 10% minority equity interest in the business, or approximately $200 million, permitting continued collaboration and cooperation between IFF and Food Ingredients and allowing IFF and its shareholders to participate in future value creation under its new ownership.
The transaction marks a significant step in IFF’s portfolio transformation and is expected to strengthen the company’s focus on its innovation-driven businesses: Taste, Scent, and Health & Biosciences. Following the transaction, IFF will be a more focused company with improved cash flow characteristics, greater financial flexibility, and a stronger position to achieve its growth and profitability objectives.
“This transaction represents an important strategic milestone in our ongoing portfolio optimization initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments,” said Erik Fyrwald, CEO of IFF. “By simplifying our portfolio to where we can create the greatest value, IFF will accelerate innovation, drive investment in R&D, and further integrate our biotechnology and naturals capabilities more effectively across our global platform. Importantly, by retaining a minority stake in Food Ingredients, we will continue to participate in the future upside of a strong business under dedicated ownership. This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.”
IFF’s Food Ingredients business is a globally recognized leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients serving multinational food and beverage customers. In 2025, the Food Ingredients business that will be divested generated nearly $3.1 billion in annual sales and approximately $430 million of EBITDA.
“We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business,” Fyrwald added. “We are confident CVC is the right owner for its next chapter and that this transaction creates significant value for IFF shareholders while giving Food Ingredients an excellent platform for future success.”
“We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. portfolio,” said Lorne Somerville, managing partner and co-head of North American private equity at CVC. “The business has built a strong position in an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean-label products. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth.”
James Christopoulos, partner at CVC, added: “The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth. We look forward to partnering with the team and with IFF as co-shareholders to accelerate the next phase of growth through scale and commercial expansion.”
Transaction Benefits and Portfolio Positioning
Over the last several years, IFF has taken decisive action to simplify its portfolio, sharpen strategic focus, and strengthen its financial foundation. Including this transaction, IFF has divested 13 non-core businesses, generating nearly $10 billion in gross proceeds, which have supported balance sheet improvement and reinvestment in the company’s highest-return businesses.
Upon completion of the Food Ingredients transaction, IFF will be centered on three market-leading businesses serving attractive end markets supported by long-term megatrends in health, well-being, food, and sustainability. Each business is well positioned for strong revenue and EBITDA growth opportunities and powered by shared naturals and biosciences capabilities:
Taste: Unique, technology-enabled flavor solutions for global food and beverage customers Scent: Leading positions in fine fragrance, consumer fragrance across personal and home care categories, and fragrance ingredients Health & Biosciences: Innovation-led solutions spanning probiotics, enzymes, cultures, and bioactive health ingredients With a more streamlined portfolio, IFF expects to be better positioned to accelerate innovation, improve execution, enhance free cash flow conversion, and deliver a stronger long-term financial profile. Over time, in a normalized environment, IFF expects to achieve mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth, underpinned by the differentiated and innovation-led nature of its remaining business.
Use of Proceeds and Financial Impact
IFF expects to receive net cash proceeds of approximately $3.8 billion at closing, reflecting the rolled-over equity, customary purchase price adjustments, costs incurred to stand up and carve out the business and taxes. The company intends to prioritize use of proceeds toward:
Debt reduction to accelerate deleveraging and reinforce balance sheet strength Targeted share repurchases, as authorized by the Board of Directors Reinvestment in high-return growth and high-return opportunities across the core portfolio The transaction is expected to be dilutive to adjusted EPS in the first 12 months following closing, prior to the benefits from capital deployment and any actions to address stranded overhead costs. IFF believes the strategic and financial benefits of a more focused portfolio, stronger balance sheet and improved cash generation profile outweigh the near-term earnings impact. Furthermore, the company has implemented a plan to address all of the stranded overhead costs that are a consequence of the transaction. IFF is also reiterating its previously communicated full-year 2026 guidance ranges. The company expects full year 2026 sales to be in the range of $10.5 billion to $10.8 billion and full year 2026 adjusted operating EBITDA to be in the range of $2.05 billion to $2.15 billion. IFF continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3% to 8%.
Transaction Details
The transaction is expected to close by the end of the second quarter of 2027, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals, where required. As part of the retained 10% equity interest, IFF will also hold a board seat in the new company.
J.P. Morgan Securities LLC (lead) and BofA Securities are serving as IFF’s financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates is serving as legal advisor.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes statements that are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the anticipated closing date of the sale of our Food Ingredients division), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the company, are subject to change, and involve uncertainties that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) 4 volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.
The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.
We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.
Use of Non-GAAP Financial Measures
We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; and (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors.
Comparable results exclude the impact of divestitures.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, divestiture costs, strategic initiatives costs, regulatory costs and other items.
These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA under “Use of Proceeds and Financial Impact” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience.Learn more at iff.com, LinkedIn, Instagram and Facebook.
About CVC
CVC is a leading global private markets manager with a network of 29 office locations throughout EMEA, the Americas, and Asia, with approximately €209 billion of assets under management. CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, for which CVC funds have secured commitments of over €257 billion from some of the world's leading pension funds and other institutional investors. Funds managed or advised by CVC’s private equity strategy are invested in approximately 150+ companies worldwide, which have combined annual sales of over €240 billion and employ over 660,000 people. For further information about CVC please visit: https://www.cvc.com/. Follow us on LinkedIn.
Food Ingredients business is a global supplier of texturants, emulsifiers, plant-based solutions and other specialty ingredients for major food and beverage customers. The business generated nearly $3.1 billion in sales and about $430 million in EBITDA in 2025.
• Intl Flavors & Fragrances stock is showing upward bias. Where is IFF stock headed?
DetailsAs part of the deal, International Flavors & Fragrances will retain an approximately 10% minority stake in the business, valued at around $200 million.
It will enable ongoing collaboration with the Food Ingredients unit and allow IFF shareholders to participate in future upside under the new ownership structure.
The transaction is expected to close by the end of the second quarter of 2027, subject to regulatory approvals.
IFF expects around $3.8 billion in net cash proceeds from the deal. The company expects to primarily use it for debt reduction, share repurchases, and reinvestment into higher-return growth opportunities.
Strategic FocusThe divestiture is part of IFF’s strategy to sharpen its focus on higher-growth and higher-margin businesses, enhancing its financial flexibility and value creation for shareholders.
The transaction is expected to sharpen its focus on core innovation-led segments, including Taste, Scent, and Health and Biosciences.
Notably, the Food Ingredients sale marks another step in IFF’s portfolio simplification strategy, bringing total divestitures to 13 non-core businesses and nearly $10 billion in gross proceeds in recent years.
Synergies & GuidanceThe company expects the deal to be dilutive to adjusted EPS over the first 12 months.
Meanwhile, International Flavors & Fragrances reaffirmed its FY26 outlook, expecting sales of $10.5 billion–$10.8 billion and adjusted operating EBITDA of $2.05 billion–$2.15 billion.
The company also maintained its currency-neutral growth expectations, with sales growth of 1% to 4% and adjusted EBITDA growth of 3%–8% for the year.
IFF Earnings Preview and Analyst EstimatesInternational Flavors & Fragrances is slated to provide its next financial update on Aug. 4, 2026 (estimated).
EPS Estimate: $1.12 (Down from $1.15) Revenue Estimate: $2.70 billion (Down from $2.76 billion) Valuation: P/E of 24.2x (Indicates fair valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $93.18. Recent analyst moves include:
Barclays: Overweight (Raises target to $90 on May 8) Citigroup: Buy (Raises target to $96 on May 7) JP Morgan: Overweight (Raises target to $92 on May 7) Top ETFs Holding IFF StockSignificance: Because IFF carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
IFF Stock Price Activity: International Flavors & Fragrances shares were down 0.15% at $77.92 at publication on Friday, according to Benzinga Pro data.
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Key Takeaways IFF agreed to sell its Food Ingredients business to CVC Capital Partners for $4.3 billion.IFF expects $3.8 billion in net cash proceeds for debt reduction, buybacks and growth investments.IFF says that the sale sharpens focus on higher-growth businesses and supports long-term growth goals. International Flavors & Fragrances Inc. (IFF - Free Report) 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.
IFF’s Benefits From the DealThe Food Ingredients business generated $3.1 billion in 2025 with $430 million of EBITDA. The deal values the business at $4.3 billion, which represents an enterprise value of about 10X its EBITDA. International Flavors has decided to retain around 10% minority equity interest in the business to allow its shareholders to participate in future value creation under its new ownership.
At closing, International Flavors will receive net cash proceeds of $3.8 billion. The company aims to use the cash proceeds for debt reduction, targeted share repurchases, and reinvestment in high-return growth and high-return opportunities across the core portfolio.
IFF expects the deal to close by the end of the second quarter of 2027, subject to closing conditions.
International Flavors’ Focus on Portfolio TransformationIFF has been actively simplifying and sharpening its portfolio over the past several years. The sale of the Food Ingredients business marked the divestment of 13 non-core businesses for International Flavors. These sales generated about $10 billion in gross proceeds, supporting the company’s balance sheet improvement.
The sale of the Food Ingredients business will help International Flavors concentrate resources on its higher-growth, higher-margin segments. The company will center its operations around three industry-leading businesses that target high-growth markets, driven by global trends in health, well-being, food and sustainability.
The company expects long-term revenue growth in the mid-single digits and adjusted EBITDA growth in the high-single digits. The upside will be driven by the differentiated and innovation-led nature of its core business.
IFF Stock’s Price PerformanceIn the past year, the company’s shares have gained 2.9% compared with the industry’s growth of 3.3%.
Image Source: Zacks Investment Research
International Flavors’ Zacks Rank & Stocks to ConsiderIFF currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB sports a Zacks Rank #1 (Strong Buy) at present, and APD and ASM carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 203.1% so far this year.
The Zacks Consensus Estimate for Air Products and Chemicals’ current-year earnings is pegged at $13.20 per share, indicating a 9.7% year-over-year rise. APD has an average trailing four-quarter earnings surprise of 2.9%. Air Products and Chemicals’ shares have gained 10.1% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares soared 113.4% in a year.
It has been about a month since the last earnings report for International Flavors (IFF - Free Report) . Shares have lost about 11.3% 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 the most recent earnings report in order to get a better handle on the important drivers.
IFF Q1 Earnings Beat Estimates on Volume Growth & Productivity GainsInternational Flavors reported adjusted earnings of $1.25 per share in first-quarter 2026, up 4.2% year over year. The result beat the Zacks Consensus Estimate of $1.08 by 15.7%.
Including one-time items, the company reported earnings of 66 cents per share against the prior-year quarter’s loss of $3.98.
International Flavors’ quarterly net sales were $2.741 billion, down 3.6% from the year-ago period but 3.4% above the $2.65 billion consensus mark. On a comparable currency-neutral basis, sales increased 3%, supported by volume gains across all four segments.
IFF's Q1 Margins Improved on Productivity GainsBelow the top line, IFF’s quarter reflected better operating execution despite the headline sales decline. In the reported quarter, IFF’s cost of goods sold was down 5% year over year to $1.7 billion. Gross profit dipped 1.6% to around $1 billion. The gross margin came in at 37.1% compared with 36.4% in the year-ago quarter.
Research and development expenses decreased 7.4% year over year to $427 million. Selling and administrative expenses inched up 1.2% to $166 million in the quarter. Adjusted operating EBITDA came in at $568 million, up 11.6% from the prior-year quarter’s $509 million. The adjusted operating EBITDA margin was 20.7% compared with the year-ago quarter’s 17.9%.
On a comparable currency-neutral basis, adjusted operating EBITDA improved 8% compared with the prior year, aided by volume growth and productivity gains.
International Flavors' Segments Show Broad Volume GrowthNet sales in the Taste segment increased 5.6% year over year to $656 million in the quarter. On a comparable basis, currency neutral sales rose 2% with broad-based growth in all regions. The segment’s adjusted operating EBITDA was $153 million, down 29% year over year.
Net sales in the Food Ingredients segment rose 7.7% year over year to $839 million in the March-ended quarter. On a comparable basis, currency neutral sales rose 3% attributed to volume growth in nearly all businesses. The adjusted operating EBITDA was $114 million, up 5.6% year over year.
Sales generated in the Health & Bioscience segment were $595 million compared with the year-earlier quarter’s $540 million. On a comparable basis, currency neutral sales were up 5% with growth in nearly all businesses, led by Animal Nutrition and Food Biosciences. The adjusted operating EBITDA was $153 million in the quarter, up 13.3% year over year.
The Scent segment’s sales were $651 million, up 6% year over year. On a comparable basis, currency neutral sales inched up 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. The adjusted operating EBITDA increased 5% year over year to $148 million.
International Flavors' Cash Flow Rose, Leverage SteadyCash generation improved meaningfully with International Flavors generating $257 million in cash from operating activities in the first quarter, higher than $1.27 million in the prior-year quarter. Free cash flow was at $92 million after $165 million of capital expenditures.
IFF had cash and cash equivalents of $562 million at the end of the first quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at the quarter-end compared with $4.74 billion at the end of 2025. Net debt to credit adjusted EBITDA was 2.5x.
International Flavors Maintains 2026 GuidanceLooking ahead, IFF reaffirmed its full-year 2026 guidance despite what management described as an unsettled operating environment. The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.
International Flavors continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3-8%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, International Flavors has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, International Flavors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerInternational Flavors is part of the Zacks Chemical - Specialty industry. Over the past month, Quaker Chemical (KWR - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Quaker Chemical reported revenues of $480.48 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $1.63 for the same period compares with $1.58 a year ago.
For the current quarter, Quaker Chemical is expected to post earnings of $1.61 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Quaker Chemical. Also, the stock has a VGM Score of C.
Driving growth for high-performance, sustainable solutions, while enabling customers to avoid 27.2 million metric tons of CO₂e emissions
NEW YORK--(BUSINESS WIRE)--IFF (NYSE: IFF) — a global leader in flavors, fragrances, food ingredients and health & biosciences — released its 2025 Do More Good Report, highlighting the company’s commitment to creating better products and experiences for people and the planet. IFF’s increasingly nature-based portfolio underscores the central role of sustainability and positions its innovation at the intersection of biology and chemistry. Through continued investment in R&D, expanded global innovation partnerships and measurable impact across the value chain, the report demonstrates how IFF is reducing environmental impact while delivering differentiated performance and long-term value for customers and consumers.
“IFF’s 2025 Do More Good Report shows clear progress in advancing nature-based solutions and strengthening our portfolio,” said Erik Fyrwald, CEO of IFF. “We continue sharpening our focus on high-value, science-led growth and winning with customers by delivering differentiated solutions that accelerate their success.”
This year’s report features key accomplishments across the organization and the impact of IFF’s innovation through four core pillars aligned with the report’s theme, “The Science of Possible”: Conscious Sourcing, Intentional Innovation, Operating for the Future and Partnerships of Impact. The report includes advances in nature-based ingredients, biodegradable encapsulation technologies such as ENVIROCAP and next-generation biomaterials, as well as targeted partnerships that strengthen supply resilience and innovation at origin — from sustainable vanilla sourcing in Madagascar to applied citrus research in Florida and forest-based fragrance development in Brazil.
Key highlights from the 2025 Do More Good Report include:
Customer-centric sustainability: IFF-enabled products helped avoid 27.2 million metric tons of carbon dioxide equivalent emissions in 2025 — 19.2 times more than the company’s own manufacturing emissions. Innovation for impact: About 77% of new products launched between 2023–25 had a sustainability value proposition in support of people and planet, according to our internal Innovation for Sustainability Assessment Tool. Advancing supply chain sustainability: Seventy natural ingredients were certified For Life by ECOCERT, supporting conservation and improving farmer livelihoods. Operational excellence: The company’s safety performance achieved a 21% reduction in its total recordable incident rate from the prior year. In addition, 100% of employees completed business ethics training. IFF’s sustainability leadership continues to be recognized by top global benchmarks like Dow Jones Best In Class Indices (North America), 2025 EcoVadis Gold, CDP Climate A List, USA TODAY’s America’s Climate Leaders 2025, and Newsweek’s America’s Most Responsible Companies 2025, among many others. Explore the full 2025 Do More Good Report.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in taste, scent, food ingredients, health and biosciences, we’re innovating for the future. Every day, we deliver groundbreaking, sustainable solutions that elevate products people love — advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook.
