SJM · The J. M. Smucker Company

The J. M. Smucker Co. reported solid fiscal Q4 2026 results, with revenue of $2,268.1 million (+6% YoY) and adjusted EPS of $2.77 (+20%). The top-line growth was entirely driven by net price realization (+10 points), particularly in coffee and sweet baked goods, which offset a 4-point volume/mix decline. Gross profit rose 5% to $862.1 million, though margins tightened slightly due to higher commodity costs and tariffs. Operating income swung to a gain of $444.5 million from a loss of $599.1 million in the prior year, which had been burdened by large goodwill and intangible impairment charges. Segment performance was led by U.S. Retail Coffee (+12% revenue to $830.6 million) on strong pricing, while Away From Home surged 15% to $228.3 million, benefiting from both pricing and volume growth in Uncrustables and coffee. The Sweet Baked Snacks segment contracted 5% on volume weakness. Management highlighted the company's strategic focus on organic volume growth, profitability improvement, and disciplined capital deployment. For fiscal 2027, the company guided for a modest revenue decline of 3-4%, reflecting lower net price realization and volume/mix headwinds, but expects adjusted EPS to rise 7-12% to $9.75-$10.25, implying margin recovery. Free cash flow is targeted at $1.0 billion, with capital expenditures of $325 million. The guidance does not assume new or changed tariffs, leaving some uncertainty. Overall, the quarter demonstrated pricing power and cost control, and the forward outlook suggests earnings growth despite a softer top line, reinforcing confidence in the company's transformation.