International Flavors & Fragrances Inc. Q3 2026 Earnings Recap

IFF shares fell 4.9% after earnings, despite the company raising the low end of its full-year guidance. The likely concern is weaker near-term profitability in Q4, particularly in Health & Biosciences, where management cited higher costs and continued market softness.

Key Takeaways

• First-nine-month sales grew 4% and EBITDA rose 7%, on a currency-neutral basis; adjusted operating EBITDA margin improved 50 basis points.
• Q3 sales grew across all segments. Taste and Scent delivered mid-single-digit growth, while Health & Biosciences posted modest growth.
• Free cash flow was $371 million for the first nine months, up $245 million versus last year; IFF also completed a $500 million accelerated share repurchase.
• Management raised the lower end of both full-year guidance ranges, but flagged Q4 profitability softness, particularly in Health & Biosciences.
• The planned sale of Food Ingredients for about $4.3 billion remains on track to close by the end of the first half of 2027; the SCL sale is complete, and divestitures of several other businesses are expected to close by year-end.