DailyIQ
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Sector:Basic MaterialsAll sectors
Last updated 1 hour ago

IFF·International Flavors & Fragrances Inc.

$.
-. (-.%)
After Hours
High
$79.63
Open
$79.13
Market Cap
19.79B
52W High
$84.45
Low
$76.97
P. Close
$77.53
P/E
23.23
52W Low
$59.14
Fwd P/E
16.08
DailyIQ Est.
$94.31
Technical Score (1D)
73
BUY
News Sentiment
47
MIXED
International Flavors & Fragrances announced that it will divest its food‑ingredients business, a move slated to close by 2027, signaling a strategic pivot toward higher‑margin specialty segments. The divestiture will free capital and management bandwidth for the company’s health‑and‑biosciences unit, which already accounts for roughly 30 % of IFF’s profits. By shedding a lower‑margin food‑ingredients line, IFF can concentrate on the rapidly expanding probiotics and enzyme markets, where growth prospects and pricing power are stronger. The shift is expected to streamline operations, reduce operating complexity, and potentially improve earnings per share over the next decade. Investors should monitor the progress of regulatory approvals and the final transaction structure, as any delays could affect the timing of capital reallocation. The divestiture also raises the question of how the company will maintain its custom formulation capabilities for food, beverage, and personal‑care customers without the food‑ingredients platform. Market participants will watch for any changes in IFF’s product mix and gross‑margin profile that could alter its competitive positioning. Finally, the announcement may prompt a reassessment of IFF’s valuation multiples, as the focus on higher‑margin segments could justify a premium to peers still heavily invested in food‑ingredients.
Earnings Summary
International Flavors & Fragrances (IFF) is a global specialty chemicals company that creates and distributes flavors, fragrances, and specialty ingredients across four segments—Nourish, Health & Biosciences, Scent, and Pharma Solutions—serving food, beverage, health, and pharmaceutical markets. Operating within the basic materials sector, IFF leverages a diversified portfolio to deliver sensory and functional solutions worldwide. In the most recent quarters, IFF reported Q4 2025 revenue of $2.589 billion, up 5.7% from the $2.441 billion of Q1 2026, while EPS rose from $0.80 to $1.25—a 56% increase—highlighting a rebound in profitability after a modest decline in Q2 2025. The company beat consensus estimates in three of the last four quarters, with Q4 2024 and Q1 2025 both exceeding EPS expectations, but missed the Q4 2025 target, underscoring a mixed earnings trajectory. Historically, IFF has shown a mixed YoY growth pattern: revenue fell 6.5% in Q4 2025 versus Q4 2024 and 3.6% in Q1 2026 versus Q1 2025, while EPS dipped 17% in Q4 2025 but climbed 4% in Q1 2026, indicating that revenue declines have not consistently translated into earnings misses. Recent news highlights a UBS price‑target cut to $84 amid short‑term valuation concerns, juxtaposed with a Morgan Stanley upgrade to an overweight rating and a $95 target that reflects confidence in margin improvement; the launch of the SENSORA pro‑fragrance platform is positioned to broaden product offerings and potentially lift revenue and margins. Investors should watch for the Q2 2026 earnings release for guidance on EPS and revenue, monitor the adoption and sales impact of the SENSORA platform, and keep an eye on short‑interest trends and consumer‑goods spending data that could influence demand for IFF’s specialty ingredients.

EPS

EstBeatMiss
$0.73$0.88$1.02$1.17$1.32Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.12 - -
Q1'26$1.08$1.25+15.3%
Q4'25$0.83$0.80-3.8%
Q3'25$1.02$1.05+3.3%
Q2'25$1.12$1.15+2.5%
Q1'25$1.14$1.20+5.7%

Revenue

EstBeatMiss
$2.5B$2.6B$2.7B$2.8B$2.9BQ1'25Q2'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.7B - -
Q1'26$2.7B$2.7B+2.7%
Q4'25$2.5B$2.6B+2.7%
Q3'25 - - -
Q2'25 - $2.8B -
Q1'25 - $2.8B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

IFF Stock Snapshot

IFF is currently trading at $77.53, giving International Flavors & Fragrances Inc. a market cap of 19.79B and a P/E ratio of 23.2. Today's range spans $76.97–$79.63, with shares opening at $79.13 and moving up $0.00 (0.0%) from the prior close. DailyIQ's technical score sits at 73/100 (BUY) with a news sentiment reading of 47/100.

Over the past year IFF has traded between $59.14 and $84.45 - the current price is +31.1% off the 52-week low and -8.2% from the high. 26 analysts cover the stock with a Buy consensus and a mean 12-month target of $91.21 (range $71.00–$105.00), implying upside of +17.6%.

Relative strength is the story for International Flavors & Fragrances Inc. (IFF) in Basic Materials right now. Technical score 73/100 (BUY), sentiment neutral at 47/100, price $77.53 (in the upper portion of its 52-week range). The current P/E ratio stands at 23.2. The 19.79B market cap keeps this name on institutional screens, and the bullish setup means sector rotation inflows from Basic Materials have a natural landing spot here. Annual range: $59.14–$84.45.

Earnings revision cycles in large-cap Basic Materials names tend to compound: when technicals confirm a BUY thesis (73/100) and news sentiment (47/100, neutral) supports the narrative, analyst upgrades follow price rather than lead it. At $77.53 (in the upper portion of its 52-week range), IFF's position within the $59.14–$84.45 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.