McCormick (MKC) has wrapped up FY 2025 with fourth quarter revenue of US$1,850.4 million and basic EPS of US$0.84, supported by net income of US$226.6 million. This sets a clear marker for how its full year played out. The company has seen quarterly revenue move from US$1,605.5 million in Q1 2025 to US$1,850.4 million in Q4 2025. Over the same period, basic EPS moved from US$0.60 to US$0.65 and then to US$0.84, giving investors a clear view of how sales and per share earnings have tracked into year end as they consider margin resilience and the sustainability of recent profit levels.

See our full analysis for McCormick.

With the headline numbers on the table, the next step is to see how McCormick's reported performance aligns with the prevailing earnings and dividend narratives that investors have been following.

TTM revenue holds around US$6.8b

• Over the last twelve months to Q4 2025, McCormick generated about US$6.8b in revenue and US$789.4 million in net income, with basic EPS at US$2.94.
• What stands out for the bullish view is that earnings are assessed as high quality while five year EPS growth of about 1.1% a year sits alongside this US$6.8b revenue base. This supports the idea of a steady franchise but also raises the question of how much of the roughly 7.8% forecast earnings growth is already reflected in the current TTM EPS of US$2.94.
  • Supporters of the bullish case can point to TTM net income of US$789.4 million and an 11.5% net margin as evidence that profitability has held close to last year’s 11.7% level.
  • On the other hand, the modest 0.1% earnings growth over the last year compared to the 1.1% five year average shows that recent profit expansion has been relatively muted even as revenue reached US$6.8b.

Have a closer look at how these earnings trends fit into McCormick's longer term growth story and valuation narrative. 📊 Read the full McCormick Consensus Narrative.

Margins steady near 11.5% despite higher sales

• Net profit margin over the last year was 11.5% compared with 11.7% the year before, while quarterly net income moved from US$162.3 million in Q1 2025 to US$226.6 million in Q4 2025 as revenue rose from US$1,605.5 million to US$1,850.4 million over the same period.
• Bulls arguing that McCormick offers resilient profitability can point to the narrow margin movement between 11.7% and 11.5%. That same stability, however, also tests how much operating leverage is available when revenue across the last twelve months increased to US$6.8b and quarterly net income in FY 2025 ranged from US$162.3 million to US$226.6 million.
  • Support for the bullish stance comes from the fact that TTM net income of US$789.4 million is close to the prior year’s US$788.5 million, which aligns with the idea of steady earnings quality.
  • At the same time, critics of the bullish narrative can point to last year’s earnings growth of only 0.1% and the small margin shift from 11.7% to 11.5% as evidence that, while stable, profitability has not accelerated meaningfully despite higher quarterly revenue.

Valuation signals vs US$61.20 share price

• At a share price of US$61.20, McCormick is trading on a P/E of 20.8x, below the US Food industry average of 21.6x and peer average of 22.8x, with a DCF fair value of about US$104.84 and an analyst price target of US$77.00, while the dividend yield is 3.14%.
• Skeptics focused on valuation risk may highlight McCormick’s high debt level. Even so, the combination of a 3.14% yield, a P/E below both industry and peer averages, a DCF fair value of US$104.84 and an analyst target of US$77.00 versus the current US$61.20 price presents a mix of income and potential upside that challenges a purely bearish stance based only on leverage concerns.
  • Bears point to the high level of debt as a key financial risk, but the company’s net profit margin of 11.5% and TTM net income of US$789.4 million suggest the business currently services that capital structure from a solid earnings base.
  • At the same time, the relatively modest five year earnings growth of 1.1% a year and 0.1% growth in the last year give bears some support when they question how quickly cash flows might expand to reduce leverage, despite the apparent discount to the US$104.84 DCF fair value and US$77.00 analyst target.
  Next Steps

  Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on McCormick's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

  See What Else Is Out There

  McCormick’s modest 0.1% earnings growth, 1.1% five year EPS trend and high debt level highlight limited momentum in expanding profitability while carrying leverage.

  If that mix of slow earnings progress and a geared balance sheet feels uncomfortable, check out solid balance sheet and fundamentals stocks screener (389 results) to focus on companies built on stronger financial footing and cleaner debt profiles.

  This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.