$1.13 EPS Leads Sensient Results Despite Revenue Miss
Key Facts
Sensient Technologies reported results on October 30 for the third quarter ended September 30, 2026, posting earnings per share of $1.13, $0.04 above analysts’ estimate of $1.09. Revenue, by contrast, was $455.8 million, below the consensus estimate of $459.05 million, despite rising from a year earlier. In its filing with the U.S. Securities and Exchange Commission, the company said reported revenue increased 10.6% from the third quarter of 2025. Reported EPS rose 29.9% from 87 cents in the year-earlier period. The results therefore showed year-over-year growth in revenue and earnings, with EPS topping estimates while revenue fell short.
Revenue was $455.8 million, compared with $412.1 million in the third quarter of 2025, and rose 10.2% on a local-currency basis, according to the company’s statement. Revenue growth in the same period a year earlier was slower, rising 5.0% to $412.1 million from $392.6 million in the third quarter of 2024. On earnings, Sensient said reported operating income increased 25.5% to $72.4 million, from $57.7 million a year earlier. The comparison, however, includes $3.3 million in portfolio improvement plan costs recorded in the third quarter of 2025, while no similar costs were recorded in the current quarter. In the second quarter of 2026, revenue was $462.1 million, up 11.6% year over year, and operating income was $76.7 million, up 32.9%.
Growth in the Color Group led revenue performance among the two groups for which the statement provided figures: its revenue increased 18.1% to $210.3 million compared with the third quarter of 2025. The company attributed the increase mainly to strong sales volume growth. The Flavors & Extracts Group’s revenue rose 3.5% to $210.0 million year over year. Sensient said growth in the group came mainly from higher prices and increased sales volume. The figures show different growth drivers between the groups: volume expansion was the main factor in Colors, while both pricing and volume contributed in Flavors & Extracts.
Reported EPS rose to $1.13 from 87 cents in the third quarter of 2025, while adjusted diluted EPS on a local-currency basis increased 17.7%, according to Sensient’s statement. Reported EPS had risen 13.0% year over year in the third quarter of 2025, climbing to 87 cents from 77 cents in the year-earlier period. Chief Executive Paul Manning said the results reflected “the strength of our strategy and our unwavering focus on our customers.” He added that he was encouraged by “the momentum across our businesses, the opportunities in our markets, and the investments we are making to support growth.” He also said he remained “very confident in our performance in 2026 and beyond,” linking his optimism to the strategy, customer focus, momentum and investments.
For its full-year outlook, the company raised the low end of its 2026 GAAP diluted EPS forecast to $4.15 from $4.10, while keeping the high end at $4.20. Sensient maintained its forecast for local-currency revenue growth in the high-single-digit to low-double-digit range. It also expected adjusted EBITDA growth on a local-currency basis in the mid- to high-teens range. The guidance puts the new EPS low end above the company’s previous forecast, while the high end is unchanged. Its local-currency revenue growth forecast remains in the same range the company announced for the year.
Sensient shares fell 4.96% in premarket trading after the results were announced, according to Investing.com, following revenue that missed analysts’ consensus despite EPS topping their estimate. The stock closed at $131.53 on October 29, according to EL7 data. The decline figure is for premarket trading on October 30, while $131.53 is the closing price in the previous session. EL7 data did not provide the high or low for the October 29 session. The company’s 2026 fiscal-year guidance, including its EPS range and local-currency revenue growth, remains the main indication it has given for the period ahead.