Abstract

Sensient Technologies will report its latest quarter on February 13, 2026 Pre-Market, and investors are watching revenue growth, margin resilience, and EPS trends as the company navigates mix and pricing dynamics in its core businesses.

Market Forecast

Consensus indicators for Sensient Technologies point to current-quarter revenue of $397.47 million, an adjusted EBIT of $50.80 million, and adjusted EPS of $0.79, implying year-over-year growth of 5.28%, 17.05%, and 22.66%, respectively. Forecast commentary implies continued gross profit margin support in the mid-30% area and a constructive trajectory for net profitability; adjusted EPS growth is expected to outpace revenue on mix and operating efficiency.

Management’s business narrative emphasizes steady momentum in core flavors and fragrances and ongoing pricing discipline, with the pipeline supportive of mid‑single‑digit revenue expansion and margin recovery. The business area with the greatest upside is flavors and fragrances, underpinned by product innovation and commercial wins, which is expected to contribute $196.997 million last quarter and to expand year over year from a healthier demand mix.

Last Quarter Review

Sensient Technologies reported last quarter revenue of $412.11 million, a gross profit margin of 34.45%, GAAP net profit attributable to shareholders of $36.96 million, a net profit margin of 8.97%, and adjusted EPS of $0.96, with year-over-year growth of 4.97% on revenue and 20.00% on adjusted EPS.

A notable highlight was adjusted operating performance exceeding internal and external expectations, as EBIT of $61.03 million topped forecasts, reflecting disciplined cost control and mix improvement. In terms of main businesses, flavors and fragrances delivered $196.997 million, pigments recorded $173.161 million, and Asia-Pacific contributed $41.95 million; the mix indicates broad-based demand with the flavors and fragrances unit holding the largest revenue share and positive year-over-year momentum.

Current Quarter Outlook

Main business: Flavors and Fragrances

The flavors and fragrances operation remains the central earnings engine this quarter, supported by continued pricing realization and a favorable mix of value-added solutions. With last quarter revenue at $196.997 million and improving conversion on recent commercial wins, the segment is positioned to sustain mid‑single‑digit top‑line growth. Margin drivers include moderating input cost inflation and procurement benefits, which, together with disciplined SG&A, support leverage on the projected revenue uptick. Demand from consumer staples customers is stabilizing, while project pipelines with global accounts suggest improved throughput compared with the prior year. As a result, adjusted EPS growth is anticipated to exceed revenue growth, reflecting scale effects and better mix within the portfolio.

Most promising business: Flavors and Fragrances innovation-led demand

Within the portfolio, innovation-led solutions in flavors and fragrances represent the strongest near-term growth potential. Recent customer launches and reformulation projects indicate increasing adoption of higher-margin applications, which should drive both revenue and gross margin accretion. The segment’s $196.997 million baseline last quarter provides a robust platform for expansion, with the current-quarter forecast for company-wide revenue growth of 5.28% implying incremental contribution from new wins. Pricing actions taken in prior periods are holding, and mix is tilting toward complex systems and natural formulations, which generally carry higher contribution margins. Execution risks center on customer timing and supply chain cadence; however, the trajectory into this quarter suggests a constructive setup for margin capture.

Stock-price drivers this quarter

Share performance into and after the print will be sensitive to the balance of revenue growth versus margin execution, given expectations for adjusted EBIT of $50.80 million and adjusted EPS of $0.79. Outperformance on gross profit margin around the mid‑30% level would validate the operating model’s resilience and support multiple stability. Conversely, any sign of volume softness in pigments or elongated customer inventory adjustments could cap upside even if headline EPS meets expectations. Investors will also parse commentary on order intake, pricing sustainability, and segment mix, which will shape views on the durability of double‑digit adjusted EPS growth implied for the current quarter. Clarity on capital allocation priorities and cash conversion would provide additional support to the outlook.

Analyst Opinions

Across recent analyst and institutional commentary, the prevailing stance skews bullish, with a majority highlighting improving margin dynamics and stable demand in core flavors and fragrances against manageable macro headwinds. Positive views emphasize the healthy spread between projected revenue growth of 5.28% and adjusted EPS growth of 22.66%, citing ongoing cost discipline and mix benefits as key drivers. Several well-followed institutions expect Sensient Technologies to deliver in-line to modestly better results, with upside risk if flavors and fragrances mix tilts further toward higher-value applications and if cost efficiencies materialize faster than anticipated. The constructive tone is tempered by watchfulness on pigments volume trends and broader consumer demand elasticity, yet overall expectations remain tilted toward a clean execution and reaffirmation of a gradual margin recovery path.