IFF US S&P 500Russell 1000 Earnings call · transcribed from the recording
International Flavors & Fragrances (IFF) · Q3 2026 results and valuation
Share price: $82.65 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 5 Aug 2026
Net income turned to a loss from a profit last quarter. Management sounded very upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned loss
Net income vs Q2 2026
Outlook given
Net income -55.0M vs 50.0M
Revenue −0.6%
2 · How management spoke
Very upbeat
More upbeat than 93% of company calls
Answers to analysts: very upbeat, in line with the script.
Similar to last call.
3 · What stood out
Guidance
In Q4, International Flavors & Fragrances expects continued sales growth driven by volume increases.
Valuation
Is International Flavors & Fragrances undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$82.65
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+30.8% for 10 yrs
Fair value / share
$-15.65
Buy below
$-11.74
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
In Q4, International Flavors & Fragrances is expecting that price to input costs to be unfavorable due to some of this lag impact, but it expects as it moves through 2027, it will close this gap...
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Figure
As International Flavors & Fragrances shared last quarter, it agreed to sell the food ingredients business to CBC Capital Partners for about $4.3...
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Fading
Margin are improving following the Food Ingredients divestiture, International Flavors & Fragrances' continuing operations business unit margins are temporarily impacted by approximately $100 million…
Source quote
“margin are improving following the Food Ingredients divestiture, our continuing operations business unit margins are temporarily impacted by approximately $100 million... These stranded costs are temporary dissynergies that previously supported the Food Ingredients business but will remain with IFF post transaction close.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Since profitability was also strong, with EBITDA growing 10% to $139 million, volume growth was the primary driver of the increase in profitability.”
“With a simpler operating model and strengthening manufacturing network, we will be better positioned to accelerate innovation, improve execution, enhance free cash flow conversion, and deliver a stronger long-term growth...”
“At the same time, we are investing in profitable growth opportunities while doubling down on the innovative creativity and technology solutions expertise our customers expect from IFS.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.94B | 1.95B | −0.6% | 1.87B | +3.9% |
| Gross profit | 825.0M | 853.0M | −3.3% | 799.0M | +3.3% |
| Operating income | 160.0M | 158.0M | +1.3% | 191.0M | −16.2% |
| Net income | -55.0M | 50.0M | Turned loss | 40.0M | Turned loss |
| EPS | -0.22 | 0.20 | Turned loss | 0.16 | Turned loss |
| P/E today 116.4 | 117.6 | 74.0 | +43.6 | 12-mo loss | — |
Topics
Most discussed now
- Please note that all sales and EBITDA growth numbers that International Flavors & Fragrances will be speaking to on the call are...
- These results show the progress International Flavors & Fragrances is making in executing its volume and productivity-focused strategy, and…
- In sense, sales grew a strong 6% to $689 million.
- Really the focus internally is how do International Flavors & Fragrances balances the short-term separation piece, but also making sure it…
- International Flavors & Fragrances' strong innovation pipeline is starting to deliver new products to enable us to continue to move on that…
Faded since Q2 2026
- Dropped While the Middle Eastern crisis continues, International Flavors & Fragrances is factoring in a softer Q3, really thinking about part of it…
- Fading International Flavors & Fragrances' free cash flow position in the first half of 2026 finished at $378 million, which was up $284 million...
- Fading The team made strong progress improving net working capital, driven by effective...
- Fading Adjusted operating EBITDA was $408 million, up 6% versus the prior year, driven by strong volume growth and continued productivity...
Latest announcements
Official filings, newest first.
- Director or officer change; Articles or bylaws amended · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine