Smuckers Sales Rise, Losses Deepen And the Stock Still Falls

The J. M. SmuckerSJM-- (SJM), ranking by market capitalization, reported its fiscal 2026 Q3 earnings on Feb 26th, 2026. The company delivered stronger-than-expected revenue growth but faced deepening losses, with guidance revised to a narrower sales growth range while maintaining profit expectations.

Revenue

The total revenue of The J. M. Smucker increased by 7.0% to $2.34 billion in 2026 Q3, up from $2.19 billion in 2025 Q3. The U.S. Retail Coffee segment led with $908.20 million, while the U.S. Retail Frozen Handheld and Spreads segment contributed $454 million. The U.S. Retail Pet Foods segment generated $417.10 million, and the Sweet Baked Snacks segment reported $224.80 million. International and Away From Home operations added $335.30 million, rounding out the $2.34 billion total.

Earnings/Net Income

The J. M. Smucker’s losses deepened to $6.79 per share in 2026 Q3 from a loss of $6.22 per share in 2025 Q3 (9.2% wider loss). Meanwhile, the company’s net loss widened to $-724.20 million in 2026 Q3, representing a 9.3% increase from the $-662.30 million loss recorded in 2025 Q3. The EPS result reflects a deterioration in profitability.

Price Action

The stock price of The J. M. Smucker has edged down 1.44% during the latest trading day, has climbed 5.87% during the most recent full trading week, and has jumped 11.86% month-to-date.

Post-Earnings Price Action Review

The strategy of buying J. M. Smucker (SJM) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in poor performance over the past three years. The strategy yielded a return of -20.99%, significantly underperforming the benchmark return of 55.34%. The excess return was -76.33%, and the strategy's CAGR was -5.76%, indicating substantial losses and lack of growth. The strategy also had a high maximum drawdown of 40.84% and a Sharpe ratio of -0.23, reflecting significant volatility and risk.

CEO Commentary

Mark Smucker, CEO, President, and Chair, highlighted "strong results" in a dynamic environment, noting Q3 net sales and adjusted EPS exceeded expectations due to "leading brands" and "disciplined cost management." Strategic priorities include "engaging and delighting consumers" through "attractive categories," "brand-building," and "omnichannel presence." The leadership team remains "confident" in fiscal 2026 outcomes, emphasizing "top-line growth, profitability, and long-term shareholder value."

Guidance

The Company updated fiscal 2026 guidance: net sales growth of 3.5-4.0% (excluding $134.7M from divestitures), adjusted EPS of $8.75-$9.25, free cash flow of $975M, capital expenditures of $325M, and an adjusted effective tax rate of 24.0%. Guidance reflects a fire’s $38M impact on contract manufacturing sales but maintains adjusted EPS and cash flow expectations.

Additional News

1. Board Appointments: J. M. Smucker appointed Woo-Sung Chung and David Singer to its board following a "constructive engagement" with investor Elliott Investment Management, signaling a shift in corporate governance.

2. Portfolio Realignment: The company divested underperforming brands, including Voortman and certain Sweet Baked Snacks entities, to focus on core growth areas like coffee and frozen foods.

3. Hostess Stabilization: Management signaled progress in stabilizing Hostess, a key frozen snack brand, amid ongoing portfolio optimization efforts.