International Flavors & Fragrances Inc. (IFF), headquartered in New York, produces and markets cosmetic active and natural health ingredients for use in various consumer products. Valued at $18.7 billion by market cap, the company flavors and fragrances are individual ingredients and compounds of a large number of ingredients that are blended, mixed, and reacted together to produce proprietary formulas.
Shares of this leading global creator of flavors and fragrances have underperformed the broader market over the past year. IFF has declined 5.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.3%. However, in 2026, IFF stock is up 9.4%, surpassing the SPX’s 8.1% rise on a YTD basis.
Narrowing the focus, IFF’s underperformance is also apparent compared to the State Street Materials Select Sector SPDR ETF (XLB). The exchange-traded fund has gained about 15.4% over the past year. Moreover, the ETF’s 10.7% returns on a YTD basis outshine the stock’s high single-digit gains over the same time frame.
IFF's underperformance stems from soft demand and price pressure in its commodity segments. Management noted that Middle East tensions and inflation are likely to weigh on 2026 results. In Fine Fragrance, slower consumer demand and supply chain issues, including packaging shortages, are expected to reduce volumes in the region.
On May 5, IFF reported its Q1 results, and its shares surged 17.2% in the following trading session. Its adjusted EPS of $1.25 surpassed Wall Street expectations of $1.08. The company’s revenue was $2.74 billion, beating Wall Street forecasts of $2.65 billion. IFF expects full-year revenue in the range of $10.5 billion to $10.8 billion.
For the current fiscal year, ending in December, analysts expect IFF’s EPS to grow 7.9% to $4.53 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 20 analysts covering IFF stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
The configuration has been consistent over the past three months.
On May 9, Berenberg Bank analyst maintained a “Hold” rating on IFF and set a price target of $84.80, implying a potential upside of 15.1% from current levels.
The mean price target of $92.04 represents a 24.9% premium to IFF’s current price levels. The Street-high price target of $105 suggests an ambitious upside potential of 42.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
