IFF Q2 2026: sales up 2%, GAAP EPS $0.20, divestiture reshapes portfolio
IFF's second quarter looks better underneath than the headline. Continuing-operations sales rose 2.0% to $1.95 billion and comparable currency-neutral sales rose 6.0%, while adjusted EPS ex amortization of $0.82 came in below the $1.13 consensus EPS estimate. Read the GAAP and the adjusted numbers together, because this quarter's story is a portfolio being rebuilt, not a business accelerating.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.20, but only $0.13 of that came from continuing operations, because $82 million of acquisition-related amortization, $71 million of regulatory costs and other items sit between GAAP profit and adjusted profit. Adjusted EPS excluding amortization was $0.82, up from $0.77 a year earlier yet well short of the $1.13 consensus estimate. That shortfall is the number to sit with: the underlying business improved, but it did not earn what the Street expected this quarter.
Sales were $1.95 billion, up 2.0% from $1.92 billion a year earlier, on a continuing-operations basis that now excludes the Food Ingredients and SCL disposal groups. Comparable currency-neutral sales, which strips out divestitures and currency, rose 6.0%, led by 8.0% growth in Scent, 5.0% in Health & Biosciences and 4.0% in Taste. Put the discontinued businesses back in and total IFF sales were $2.78 billion for the quarter.
IFF introduced full-year 2026 guidance on a continuing-operations basis: sales of $7.4 billion to $7.6 billion and adjusted operating EBITDA of $1.53 billion to $1.60 billion. The $7.5 billion sales mid-point is far below the $10.65 billion guided last quarter, but it excludes about $3.2 billion of sales tied to the businesses being divested, so this is a re-basing of the reporting boundary rather than a demand downgrade. Management states the underlying performance in the three remaining business units is consistent with previous guidance.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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