Scotts Miracle Gro (SMG) opened fiscal Q1 2026 with revenue of US$354.4 million and a basic EPS loss of US$0.83. Earnings from discontinued operations weighed on the bottom line with a loss of US$77.2 million, while net income from ongoing operations came in at a loss of US$47.8 million. The company reported quarterly revenue of US$416.8 million in Q1 2025 and US$354.4 million in Q1 2026. Over the same period, basic EPS moved from a loss of US$1.21 to a loss of US$0.83. This sets up a quarter in which investors may focus on how these results flow through to underlying margins and cash generation.

See our full analysis for Scotts Miracle-Gro.

With the latest numbers on the table, the next step is to see how this earnings profile compares with the widely followed narratives around Scotts Miracle Gro, and where the fresh data may challenge those views.

Trailing US$163.5 million profit still includes US$83.8 million one off

• Over the last 12 months, Scotts Miracle Gro reported net income from ongoing operations of US$163.5 million and an US$83.8 million one off loss, which both feed into how solid that trailing profit really is.
• What stands out for a bullish view is that trailing basic EPS moved from a loss of US$0.61 in Q4 2024 to a profit of US$2.83 by Q1 2026. However, the US$83.8 million one off item in that same period means part of the recent profitability story is mixed with clean operating results and special charges.
  • Supporters can point to quarterly net income excluding extra items swinging from a loss of US$244 million in Q4 2024 to a profit of US$217.5 million in Q2 2025 and US$149.1 million in Q3 2025 as evidence of better earnings power.
  • At the same time, the one off US$83.8 million loss and US$73.8 million of earnings from discontinued operations in the trailing 12 months show that unusual items and portfolio changes are still a meaningful piece of the recent numbers.

📊 Read the full Scotts Miracle-Gro Consensus Narrative.

Q1 loss of US$47.8 million vs profitable trailing year

• For Q1 2026, net income from ongoing operations was a loss of US$47.8 million, while the trailing 12 month figure sits at a profit of US$163.5 million on US$3.4b of revenue, so the single quarter looks weaker than the full year snapshot.
• Bears argue that a single weak quarter can reveal pressure behind the headline improvement, and the Q1 2026 loss of US$47.8 million together with US$77.2 million of Q1 losses from discontinued operations shows that, even after a profitable trailing year, the business can still swing back into loss making territory.
  • Compared with Q4 2025, where the company recorded a larger loss of US$151.9 million on US$387.3 million of revenue, Q1 2026 still shows that the seasonally smaller revenue base around US$354.4 million is paired with negative earnings.
  • The shift from strong profits in Q2 2025 and Q3 2025, with net income excluding extra items of US$217.5 million and US$149.1 million, to two consecutive loss making quarters in Q4 2025 and Q1 2026 gives bears concrete quarterly swings to point to.

22.3x P/E, 4.2% yield and DCF value of US$60.57

• The shares trade around US$62.80 with a trailing P/E of 22.3x, a dividend yield of 4.2% and a DCF fair value estimate of US$60.57, so investors are paying a higher multiple than peers at 11.4x but below the wider US Chemicals industry at 25.7x.
• What challenges a purely bullish stance is that, while the company has moved to a trailing profit and earnings are forecast to grow around 16.7% a year, the 22.3x P/E sits above the peer average of 11.4x and the DCF fair value of US$60.57 is slightly below the current US$62.80 share price.
  • Supportive investors may focus on the combination of positive trailing earnings of US$163.5 million and the 4.2% dividend yield as reasons to accept a premium to peers.
  • More cautious holders can point to weak debt coverage by operating cash flow, together with the DCF fair value sitting under the market price, as reasons to question how much upside is already reflected in that 22.3x multiple.

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 Scotts Miracle-Gro'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

Recent results show two consecutive loss making quarters, ongoing one off items and weak debt coverage by operating cash flow, which together raise questions about financial resilience.

If that mix of losses and balance sheet pressure makes you cautious, shift your focus to solid balance sheet and fundamentals stocks screener (385 results) to quickly zero in on companies built on stronger financial footing.

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.