McCormick (MKC) is expected to reiterate fiscal 2026 guidance at its Q3 results on Oct. 1, UBS said in a note Wednesday.

UBS analysts expect fiscal Q3 EPS of $0.74, slightly below Visible Alpha consensus of $0.76. They forecast revenue to be slightly above the Street, and gross margin to be roughly in-line.

The report said consumption trends have remained relatively muted, while inflationary pressures have re-emerged as a key concern for the broader sector.

Despite a challenging macro environment, the report said the base case expectation is for the company to reiterate fiscal 2026 guidance next week.

The pending transaction with Unilever's (UL) foods business

continues to weigh on the stock, though next week's merger-related disclosures could provide greater clarity, the note said.

"While valuation appears compelling relative to history, we believe greater visibility into the topline trajectory and the upcoming merger is required before becoming more constructive," the report said.

UBS kept its neutral rating and a price target of $52.

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