The J. M. Smucker Company (SJM) Q4 2026 [Q&A] earnings summary

Executive summary

• Fiscal 2026 ended with strong momentum, with Q4 net sales up 6% year-over-year and adjusted EPS rising 20% to $2.77.

• Strategic priorities include organic volume growth, profitability improvement, and disciplined capital deployment.

• Portfolio optimization, brand investments, and divestitures of Sweet Baked Snacks value brands and VoortmanⓇ business support long-term growth.

• Free cash flow for FY26 reached $1.2 billion, with strong cash provided by operations at $1.5 billion.

• FY27 outlook provided, anticipating continued focus on growth and capital discipline.

Financial highlights

• Q4 FY26 net sales were $2,268.1 million, up 6% year-over-year; adjusted operating income rose 14% to $482.1 million.

• Adjusted EPS for Q4 FY26 was $2.77; full-year adjusted EPS was $9.15, down 10% year-over-year.

• Free cash flow for FY26 was $1.2 billion, with Q4 free cash flow at $483.9 million.

• FY26 adjusted EBITDA was $1.84 billion (20.3% of net sales).

• FY26 total debt repayment was $720 million; dividends paid totaled $464.7 million.

Outlook and guidance

• FY27 net sales expected to decline 3–4%, with Q1 flat and deflationary impact from coffee flowing through from Q2 onward.

• Adjusted EPS guidance for FY27 is $9.75–$10.25, up 7–12% from FY26.

• Free cash flow guidance for FY27 is around $1 billion, with $325 million in capital expenditures.

• FY27 guidance assumes mid-single-digit deflation, mainly from green coffee, and low single-digit inflation in packaging, ingredients, and transportation.

• Adjusted gross profit margin expected at ~38%; SD&A expenses to rise ~5%.