The J.M. Smucker Company reported a 71% year-over-year increase in adjusted earnings per share to $3.24 for the fiscal 2027 first quarter, driven by approximately $115 million in tariff refunds. GAAP net income per diluted share totaled $3.03. Net sales rose 5% to $2.22 billion, with U.S. Retail Coffee sales up 13% to $807.8 million.
Adjusted gross profit climbed 28% to $950.2 million, expanding gross margins by 760 basis points to 42.8%. Adjusted operating income increased 46% to $540.7 million, with operating margins up 690 basis points to 24.4%. Free cash flow surged to $337.3 million from a negative $94.9 million in the prior-year period, while net debt declined to $6.69 billion as of July 31, 2026.
Segment performance showed strong gains in U.S. Retail Coffee, where segment profit rose 124% to $300 million and margins expanded by 1,840 basis points to 37.1%. U.S. Retail Frozen Handheld and Spreads posted a 13% increase in segment profit to $129.7 million, while Away From Home segment profit grew 19% to $61.2 million. In contrast, U.S. Retail Pet Foods segment profit declined 2% to $98.9 million, and Sweet Baked Snacks segment profit fell 13% to $29.9 million.
Full-year fiscal 2027 guidance was raised, with adjusted EPS now projected in a range of $10.50 to $11.00, up from the prior range of $9.75 to $10.25. The company also lifted free cash flow guidance to $1.1 billion and narrowed its net sales decline outlook to 2.0% to 1.0%, improved from the prior guidance of a 4.0% to 3.0% decline. The updated EPS guidance includes a net benefit of approximately $0.60 from tariff refunds, offset by planned reinvestments in selling, distribution, and administrative expenses.
Smucker’s stock rose 2.67% to $128.80 following the announcement, maintaining a 3.57% dividend yield with 56 consecutive years of payouts.
