Zacks Research Issues Pessimistic Outlook for IFF Earnings

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for International Flavors & Fragrances to $0.67 from $1.14 and maintained a “Strong Sell” rating, citing weaker expected profitability.
• IFF recently reported quarterly EPS of $0.82, missing the $1.07 consensus estimate, while revenue of $1.95 billion fell short of the $2.62 billion forecast despite rising 1.8% year over year.
• The company declared a quarterly dividend of $0.40 per share and authorized a $2.5 billion share buyback, covering up to 12.1% of outstanding shares; broader analyst sentiment remains more favorable, with a “Moderate Buy” consensus and a $92.16 price target.

International Flavors & Fragrances Inc. (NYSE:IFF - Free Report) - Stock analysts at Zacks Research decreased their Q3 2026 earnings per share estimates for International Flavors & Fragrances in a note issued to investors on Tuesday, August 18th. Zacks Research analyst Team now expects that the specialty chemicals company will earn $0.67 per share for the quarter, down from their previous estimate of $1.14. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for International Flavors & Fragrances' current full-year earnings is $3.06 per share. Zacks Research also issued estimates for International Flavors & Fragrances' Q4 2026 earnings at $0.73 EPS, FY2026 earnings at $3.14 EPS, Q1 2027 earnings at $0.98 EPS, Q2 2027 earnings at $0.89 EPS, Q3 2027 earnings at $0.92 EPS, Q4 2027 earnings at $0.91 EPS, FY2027 earnings at $3.71 EPS, Q1 2028 earnings at $1.11 EPS, Q2 2028 earnings at $1.11 EPS and FY2028 earnings at $4.31 EPS.

International Flavors & Fragrances (NYSE:IFF - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The specialty chemicals company reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.25). The firm had revenue of $1.95 billion for the quarter, compared to analyst estimates of $2.62 billion. International Flavors & Fragrances had a return on equity of 7.11% and a net margin of 2.78%.The company's quarterly revenue was up 1.8% compared to the same quarter last year. During the same period last year, the firm earned $1.15 EPS.

A number of other research firms have also recently commented on IFF. Oppenheimer lifted their price objective on International Flavors & Fragrances from $88.00 to $90.00 and gave the stock an "outperform" rating in a research report on Thursday, May 7th. Benchmark upped their price objective on International Flavors & Fragrances from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft cut their price target on shares of International Flavors & Fragrances from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Monday, June 1st. BNP Paribas Exane boosted their price objective on International Flavors & Fragrances from $85.00 to $95.00 in a research note on Thursday, May 7th. Finally, Barclays boosted their target price on shares of International Flavors & Fragrances from $90.00 to $96.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. Thirteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $92.16.

International Flavors & Fragrances Trading Up 2.8%

Shares of International Flavors & Fragrances stock opened at $83.23 on Thursday. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.06 and a quick ratio of 1.72. The business has a 50 day moving average price of $79.32 and a 200 day moving average price of $76.14. The company has a market capitalization of $21.24 billion, a P/E ratio of 76.36, a P/E/G ratio of 3.01 and a beta of 0.93. International Flavors & Fragrances has a 1 year low of $59.14 and a 1 year high of $89.32.

International Flavors & Fragrances Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Friday, September 18th. International Flavors & Fragrances's payout ratio is 146.79%.

International Flavors & Fragrances declared that its Board of Directors has approved a share buyback plan on Tuesday, August 4th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the specialty chemicals company to buy up to 12.1% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

Insider Activity at International Flavors & Fragrances

In other International Flavors & Fragrances news, insider De Mendonca Ana Paula Teles sold 5,718 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $83.19, for a total transaction of $475,680.42. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael Deveau sold 8,825 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $85.55, for a total value of $754,978.75. Following the transaction, the executive vice president directly owned 5,199 shares of the company's stock, valued at $444,774.45. This represents a 62.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 15,543 shares of company stock worth $1,315,659. 1.07% of the stock is owned by company insiders.

Institutional Trading of International Flavors & Fragrances

Large investors have recently added to or reduced their stakes in the business. DNB Asset Management AS boosted its holdings in shares of International Flavors & Fragrances by 0.3% in the fourth quarter. DNB Asset Management AS now owns 53,741 shares of the specialty chemicals company's stock worth $3,622,000 after buying an additional 139 shares during the period. MML Investors Services LLC raised its holdings in shares of International Flavors & Fragrances by 0.8% during the fourth quarter. MML Investors Services LLC now owns 17,249 shares of the specialty chemicals company's stock worth $1,162,000 after acquiring an additional 140 shares in the last quarter. State of Michigan Retirement System lifted its holdings in shares of International Flavors & Fragrances by 0.3% during the 4th quarter. State of Michigan Retirement System now owns 69,515 shares of the specialty chemicals company's stock valued at $4,685,000 after buying an additional 200 shares during the last quarter. Manning & Napier Advisors LLC lifted its stake in International Flavors & Fragrances by 0.5% in the fourth quarter. Manning & Napier Advisors LLC now owns 42,033 shares of the specialty chemicals company's stock valued at $2,855,000 after acquiring an additional 203 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in International Flavors & Fragrances by 55.7% in the first quarter. Geneos Wealth Management Inc. now owns 587 shares of the specialty chemicals company's stock worth $46,000 after purchasing an additional 210 shares in the last quarter. 96.02% of the stock is currently owned by institutional investors.

Key International Flavors & Fragrances News

Here are the key news stories impacting International Flavors & Fragrances this week:

• Positive Sentiment: IFF is trading above both its 50-day and 200-day moving averages and near its 52-week high, indicating continued technical momentum. However, the provided reports do not identify a new fundamental catalyst for the move.
• Neutral Sentiment: CEO Erik Fyrwald is scheduled to participate in a Barclays Global Consumer Conference fireside chat on Sept. 10. Investors may look for updates on strategy, operating performance and capital allocation, although no new guidance was provided. IFF to Webcast Fireside Chat at Barclays Global Consumer Conference
• Negative Sentiment: Zacks Research repeatedly cut its earnings forecasts for IFF and maintained a “Strong Sell” rating. Estimates were reduced for Q3 and Q4 2026, all four quarters of 2027, and the first two quarters of 2028. Full-year EPS forecasts fell to $3.14 for 2026 from $4.45, $3.71 for 2027 from $4.81, and $4.31 for 2028 from $5.21. The reductions point to weaker expected profitability and could pressure valuation, particularly given IFF’s elevated reported P/E ratio.
• Negative Sentiment: The most significant quarterly revision was for Q3 2026 EPS, cut to $0.67 from $1.14. Forecasts for Q4 2026, Q1 2027, Q2 2027 and Q3 2027 were also lowered substantially, suggesting analysts expect near-term earnings pressure rather than a one-quarter issue.
• Negative Sentiment: An insider sold 5,718 IFF shares for approximately $476,000 at an average price of $83.19. A single insider transaction is not conclusive, but it adds a modest negative signal for investors monitoring management confidence. SEC insider transaction filing
• Negative Sentiment: Recent commentary has also questioned IFF’s capital allocation and overall investment outlook, reinforcing concerns about earnings quality and shareholder returns. IFF: 2026 Confirms Poor Capital Allocation

International Flavors & Fragrances Company Profile

International Flavors & Fragrances Inc NYSE: IFF is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.

IFF's research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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