McCormick & Company, Incorporated (NYSE:MKC) is included among the Dividend Growth Stocks: 25 Aristocrats.

On January 26, Barclays analyst Andrew Lazar cut his price objective on McCormick & Company, Incorporated (NYSE:MKC) to $67 from $72. The analyst maintained an Equal Weight rating after the company reported fourth-quarter results. He noted that management had already hinted in the fiscal third quarter that it might favor protecting volumes over near-term earnings growth in fiscal 2026. What changed after the last report were new headwinds. Lazar noted that the faster pace of the company’s enterprise resource planning rollout and tax-related drag were not entirely on investors’ radar.

Just days earlier, on January 22, McCormick warned that profits for the 2026 financial year are likely to face pressure. Higher costs linked to tariffs and raw materials are weighing on margins. Trade uncertainty has pushed up commodity prices, and ongoing investments in manufacturing sites and brand marketing have added another layer of costs.

On the post-earnings call, CEO Brendan Foley spoke candidly about the environment. Inflation, volatile commodity prices and macro conditions drove incremental costs that hurt margins. He also said that about 50% of the incremental tariffs on McCormick products are still in place and that the inflation linked to those tariffs has not gone away.

Looking ahead, the company expects the tariffs to add about $50 million in incremental costs in fiscal 2026. McCormick imports several key spices, including pepper and herbs, leaving it exposed when input prices rise. Deutsche Bank analyst Steve Powers said stocks could remain under pressure in the near term after the weak quarter and cautious outlook. Over time, it sees support from continued demand for everyday flavor products and the company’s acquisition of McCormick de Mexico.

McCormick & Company, Incorporated (NYSE: MKC) manufactures and sells spices, seasoning blends, seasonings and other flavor products in global markets.

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