Ingredion (NYSE:INGR) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Ingredion beat quarterly estimates: EPS came in at $2.82 versus the $2.71 consensus, while revenue reached $1.85 billion, up 0.9% year over year and slightly above expectations.
• Performance was mixed: Texture & Healthful Solutions delivered 7% volume growth and strong operating income, but adjusted operating income fell 5% and input-cost pressures, including tapioca prices up more than 40%, weighed on results.
• Strategic and shareholder developments advanced: the Tate & Lyle acquisition received shareholder approval, the Argo facility returned to normal production, and Ingredion maintained a $0.82 quarterly dividend while guiding to fiscal 2026 EPS of $10.30–$10.90.

Ingredion (NYSE:INGR - Get Free Report) released its earnings results on Tuesday. The company reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.71 by $0.11, FiscalAI reports. The business had revenue of $1.85 billion for the quarter, compared to analysts' expectations of $1.83 billion. Ingredion had a net margin of 9.36% and a return on equity of 15.86%. The company's quarterly revenue was up .9% on a year-over-year basis. During the same period last year, the company earned $2.87 earnings per share. Ingredion updated its FY 2026 guidance to 10.300-10.900 EPS.

Here are the key takeaways from Ingredion's conference call:

• Second-quarter results were mixed: net sales rose 1% to $1.85 billion, while adjusted operating income fell 5% to $258 million and adjusted EPS declined $0.05 year over year.
• Texture & Healthful Solutions remained the growth engine, with volume up 7% for the ninth consecutive quarter and operating income reaching its second-highest level ever, supported by clean-label, protein, fiber, and health-and-wellness demand.
• Argo’s operational recovery progressed: the facility returned to normal production rates by the end of June, and management expects margins to improve toward historical levels by year-end, although some costs will continue flowing through inventory in the third quarter.
• The Tate & Lyle acquisition cleared shareholder approval, advancing the regulatory process; Ingredion continues to cite $130 million in expected run-rate synergies by 2030, more than 15% adjusted EPS accretion in the first full year, and a path to below 2.5x net leverage within 18 months of closing.
• Input-cost and regional pressures remain: tapioca prices are up more than 40% since the start of the year, while Mexico’s macroeconomic and currency headwinds persist; full-year adjusted operating income is now expected to decline mid-single digits, with U.S./Canada operating income down 20%–25%.

Ingredion Stock Up 1.1%

Shares of INGR traded up $1.08 during trading on Tuesday, reaching $101.50. The company's stock had a trading volume of 164,372 shares, compared to its average volume of 744,930. The company has a market cap of $6.40 billion, a price-to-earnings ratio of 9.77, a P/E/G ratio of 0.84 and a beta of 0.62. The company has a quick ratio of 1.83, a current ratio of 2.76 and a debt-to-equity ratio of 0.40. The company has a fifty day moving average of $99.93 and a two-hundred day moving average of $108.39. Ingredion has a twelve month low of $94.44 and a twelve month high of $130.48.

Ingredion Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Wednesday, July 1st were given a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend was Wednesday, July 1st. Ingredion's dividend payout ratio is presently 31.60%.

Wall Street Analysts Forecast Growth

INGR has been the topic of a number of research analyst reports. Benchmark reiterated a "buy" rating on shares of Ingredion in a report on Tuesday, June 9th. Barclays dropped their price target on Ingredion from $128.00 to $120.00 and set an "equal weight" rating for the company in a research note on Wednesday, May 6th. Oppenheimer lowered Ingredion from an "outperform" rating to a "market perform" rating in a research note on Monday, June 8th. UBS Group reiterated a "neutral" rating and set a $114.00 target price on shares of Ingredion in a report on Thursday, May 7th. Finally, Weiss Ratings cut shares of Ingredion from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $122.43.

Institutional Trading of Ingredion

Several institutional investors have recently added to or reduced their stakes in INGR. Los Angeles Capital Management LLC acquired a new position in shares of Ingredion in the 4th quarter worth approximately $36,000. Caitong International Asset Management Co. Ltd lifted its stake in Ingredion by 166.4% during the third quarter. Caitong International Asset Management Co. Ltd now owns 381 shares of the company's stock worth $47,000 after purchasing an additional 238 shares during the last quarter. DV Equities LLC bought a new position in Ingredion during the fourth quarter worth $55,000. Johnson Financial Group Inc. boosted its holdings in Ingredion by 221.0% in the third quarter. Johnson Financial Group Inc. now owns 626 shares of the company's stock worth $76,000 after purchasing an additional 431 shares during the period. Finally, Quarry LP boosted its holdings in Ingredion by 246.6% in the fourth quarter. Quarry LP now owns 766 shares of the company's stock worth $84,000 after purchasing an additional 545 shares during the period. 85.27% of the stock is owned by institutional investors and hedge funds.

About Ingredion

Ingredion Incorporated is a global ingredient solutions company specializing in the production and sale of starches, sweeteners, nutrition ingredients and biomaterials derived primarily from corn and other plant-based raw materials. The company serves a diverse set of industries, including food and beverage, brewing, pharmaceuticals and personal care, providing functional ingredients that enhance texture, stability, flavor and nutritional value in a wide array of end products.

The company's product portfolio comprises native and modified starches, high-fructose corn syrup, dextrose, maltodextrins, specialty sweeteners and various texturizers.

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