Shares of The J.M. Smucker Co. (NYSE: SJM) plunged 15% on Tuesday after the company delivered mixed results for the fourth quarter of 2025. While earnings came ahead of expectations, revenues fell short. The branded foods provider anticipates a dynamic operating environment in fiscal year 2026 with likely impacts from tariffs, input inflation and shifts in consumer behavior.
Mixed results
In the fourth quarter of 2025, JM Smucker’s net sales decreased 3% year-over-year to $2.14 billion, missing estimates of $2.19 billion. On a GAAP basis, the company reported a net loss of $6.85 per share. Adjusted earnings per share fell 13% YoY to $2.31 but surpassed analysts’ expectations of $2.25.
Business performance
In Q4, sales in the Coffee segment increased 11%, mainly driven by price increases for the Folgers and Café Bustelo brands. SJM continues to see inflation in green coffee and after rolling out two price increases last fiscal year, it is working on implementing two more this year. As a result, it anticipates some price elasticity of demand impact to volume. The company also expects continued resilience in the at-home coffee category.
Sales remained flat in the Frozen Handheld and Spreads segment, with the Uncrustables sandwiches brand maintaining its growth while Smucker’s fruit spreads and Jif peanut butter saw declines. Pet Foods segment sales dropped 13% with pressure in the dog snacks category caused by lower discretionary spend and inflationary pressures. SJM continued to see growth in the cat food category helped by its Meow Mix brand.
The Sweet Baked Snacks segment continues to be impacted by inflationary pressures and reduced discretionary spend along with weakness in the convenience channel. Sales for this segment decreased 26% in Q4.
SJM continues to focus its resources on key brands such as Uncrustables, Café Bustelo, Meow-Mix, Milk-Bone, and Hostess, where it sees the biggest opportunity for growth. The Uncrustables brand continues to see strong momentum with product innovation and production expansion. The company plans to expand this brand into the convenience channel to drive further growth. The Uncrustables brand is on track to generate over $1 billion in sales by the end of fiscal year 2026.
The Café Bustelo brand is one of the fastest-growing brands in the at-home coffee category and it is benefiting from product innovation. The company anticipates double-digit sales growth for this brand in the coming year. The Meow-Mix and Milk-Bone brands are anticipated to benefit from product innovation and the pet humanization trend.
Outlook
Looking ahead to fiscal year 2026, JM Smucker expects a dynamic operating environment impacted by tariffs, high green coffee costs, policy changes, and value-seeking customers. The company expects net sales growth of 2-4% and comparable sales growth of 3.5-5.5% for FY2026. SJM anticipates the highest impact from tariffs to be on green coffee. Adjusted EPS is expected to be $8.50-9.50.
In the first quarter of 2026, net sales are expected to decline low-single-digits, comparable sales are expected to remain flat, and adjusted EPS is expected to decline approx. 25%.
