J.M. Smucker Q1 2027 earnings beat, raises fiscal 2027 forecast

J.M. Smucker Q1 2027 earnings beat, raises fiscal 2027 forecast

Wed, August 26, 2026 at 4:27 PM GMT+3 2 min read

• SJM +2.21%
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J.M. Smucker reported fiscal first-quarter results on Wednesday that exceeded analyst expectations and raised its full-year earnings forecast, driven in part by tariff refunds and stronger coffee sales.

For the quarter ended July 31, Smucker earned an adjusted $3.24 a share, compared with $1.90 in the same period last year. That surpassed the Wall Street consensus estimate of $2.22 a share, according to Barron's. The adjusted earnings figure included an 84-cent-per-share benefit from tariff refunds received during the quarter. Net sales rose 5% to $2.22 billion, the company said.

On a GAAP basis, net income was $324.3 million, compared to a net loss of $43.9 million in the same period a year earlier. Gross profit more than doubled, rising 106%, and included approximately $115 million in tariff refunds.

The coffee business led the way. U.S. retail coffee revenue reached $807.8 million, a 13% increase year over year, with segment profit surging 124% to $300 million, the company said. Smucker credited higher coffee prices as the primary driver of overall net sales growth, alongside volume gains in Uncrustables sandwiches. The Sweet Baked Snacks segment was a weak spot, with net sales falling 7% to $236.5 million and segment profit declining 13%.

Free cash flow swung to $337.3 million from negative $94.9 million a year earlier, the company said.

Based on the first-quarter performance, Smucker raised its fiscal 2027 full-year outlook. The company now expects adjusted earnings per share of $10.50 to $11.00, up from its prior guidance range of $9.75 to $10.25. The updated forecast includes a net benefit of approximately 60 cents per share related to the tariff refunds received in the quarter. Wall Street had forecast full-year adjusted earnings of $10.07 a share, according to Barron's.

The company also narrowed its expected net sales decline to between 1% and 2% for the fiscal year, compared to a prior forecast of a 3% to 4% decline, and raised its free cash flow outlook to approximately $1.1 billion from $1.0 billion.

Smucker noted that its updated guidance does not assume any impacts from new tariffs, changes to existing tariffs, or changes to the refunds received in the first quarter.

"Our first quarter results exceeded our expectations for both net sales and adjusted earnings per share," Chief Executive Officer, President and Chair of the Board Mark Smucker said in a statement.

Shares of J.M. Smucker climbed to $129.98 in premarket trading Wednesday, a gain of 3.6%.