International Flavors (IFF) Down 14.1% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for International Flavors (IFF). Shares have lost about 14.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

International Flavors Q4 Earnings Miss Estimates, Sales Dip Y/Y

International Flavors reported adjusted earnings of 80 cents per share in fourth-quarter 2025, missing the Zacks Consensus Estimate of 85 cents. The company posted adjusted EPS of 93 cents in the year-ago quarter, including the impacts of divestiture and integration-related costs, and other non-recurring costs.

Excluding these, the company posted an adjusted EPS of 97 cents in the fourth quarter of 2024.

Including one-time items, the company reported earnings of 7 cents per share against the prior-year quarter’s loss of 23 cents.

International Flavors’ net sales were $2.59 billion in the December-end quarter, down 6.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.51 billion. In the quarter, currency-neutral sales inched up 1%, aided by mid-single-digit growth in Health & Biosciences and Scent, and a low-single-digit performance in Taste.

International Flavors’ Q4 Gross Margin Improves Y/Y

In the reported quarter, IFF’s cost of goods sold was down 5.1% year over year to $1.7 billion. Gross profit fell 9.1% to $891 million. The gross margin came in at 34.4% compared with 35.4% in the year-ago quarter.

Research and development expenses increased 2.4% year over year to $174 million. Selling and administrative expenses rose 12.8% to $383 million in the fourth quarter. Adjusted operating EBITDA came in at $437 million, up 7.2% from the prior-year quarter’s $471 million. The adjusted operating EBITDA margin was 16.9% compared with the year-ago quarter’s 17%.

IFF’s Q4 Segmental Performances

Net sales in the Taste segment increased 2.1% year over year to $588 million in the December-end quarter. The adjusted operating EBITDA was $94 million, up 8% year over year.

Net sales in the Food Ingredients segment fell 2.1% year over year to $802 million in the December-end quarter. The adjusted operating EBITDA was $82 million, up 18% year over year.

Sales generated in the Health & Bioscience segment were $586 million compared with the year-earlier quarter’s $555 million.The adjusted operating EBITDA was $155 million in the quarter, up 14% year over year.

The Scent segment’s sales were $610 million, up 5.5% year over year. The adjusted operating EBITDA remained flat year over year at $106 million.

International Flavors’ Q4 Cash Flow & Balance Sheet Updates

IFF had cash and cash equivalents of $590 million at the end of 2025, up from $469 million at the end of 2024. Long-term debt was $4.74 billion at the 2025 end compared with $7.56 billion at the end of 2024.

International Flavors generated $0.85 billion in cash from operating activities in 2025, down from $1.07 billion in the prior year.

IFF’s 2025 Performance

The company reported adjusted earnings of $4.20 per share in 2025, missing the Zacks Consensus Estimate of $4.28. The company posted adjusted earnings of $4.22 in 2024. Including one-time items, the company reported a loss of $1.46 per share against the prior year’s earnings of $1.04.

International Flavors’ net sales were $10.89 billion in 2025, down 5.2% year over year. The top line surpassed the Zacks Consensus Estimate of $10.82 billion. In the year, currency-neutral sales rose 2%. The upside was driven by volume growth, productivity gains and favorable net pricing.

International Flavors’ 2026 Guidance

The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -7.58% due to these changes.

VGM Scores

At this time, International Flavors has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, International Flavors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

International Flavors belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Linde (LIN), has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Linde reported revenues of $8.76 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $4.20 for the same period compares with $3.97 a year ago.

For the current quarter, Linde is expected to post earnings of $4.27 per share, indicating a change of +8.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Linde. Also, the stock has a VGM Score of C.

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International Flavors & Fragrances Inc. (IFF): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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