International Flavors & Fragrances Inc. (IFF), headquartered in New York, produces and markets cosmetic active and natural health ingredients for use in various consumer products. Valued at $19.2 billion by market cap, the company flavors and fragrances are individual ingredients and compounds of a large number of ingredients that are blended, mixed, and reacted together to produce proprietary formulas. The leading global creator of flavors and fragrances is expected to announce its fiscal second-quarter earnings for 2026 after the market closes on Tuesday, Aug. 4.
Ahead of the event, analysts expect IFF to report a profit of $1.13 per share on a diluted basis, down 1.7% from $1.15 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect IFF to report EPS of $4.55, up 8.3% from $4.20 in fiscal 2025. Its EPS is expected to rise 8.4% year over year to $4.93 in fiscal 2027.
IFF stock has underperformed the S&P 500 Index’s ($SPX) 20.3% gains over the past 52 weeks, with shares up marginally during this period. Similarly, it underperformed the State Street Materials Select Sector SPDR ETF’s (XLB) 11.3% returns over the same time frame.
IFF's underperformance stems from soft demand and price pressure in its commodity segments. Management noted that Middle East tensions and inflation are likely to weigh on 2026 results. In Fine Fragrance, slower consumer demand and supply chain issues, including packaging shortages, are expected to reduce volumes in the region.
On May 5, IFF reported its Q1 results, and its shares surged 17.2% in the following trading session. Its adjusted EPS of $1.25 surpassed Wall Street expectations of $1.08. The company’s revenue was $2.74 billion, beating Wall Street forecasts of $2.65 billion. IFF expects full-year revenue in the range of $10.5 billion to $10.8 billion.
Analysts’ consensus opinion on IFF stock is bullish, with a “Strong Buy” rating overall. Out of 21 analysts covering the stock, 14 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and five give a “Hold.” IFF’s average analyst price target is $91.39, indicating a potential upside of 22.4% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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