10-Q · May 5, 2026
Sensient Technologies reported a strong Q1 2026 with revenue of $435.8 million and EPS of $1.04, both exceeding analyst expectations. The results marked an 11.1% year-over-year revenue growth, with notable improvements…
Earnings analysis · 10-Q
SXT earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Sensient delivered a strong Q2, with revenue of $462.1 million up 11.6% year over year, GAAP EPS of $1.20 up 36.4%, and operating margin expanding to 16.6% from 13.9%. Color led performance, with revenue up 20.6% and…
Read full summary
Sensient delivered a strong Q2, with revenue of $462.1 million up 11.6% year over year, GAAP EPS of $1.20 up 36.4%, and operating margin expanding to 16.6% from 13.9%. Color led performance, with revenue up 20.6% and operating income up 40.1%, while Flavors & Extracts and Asia Pacific also grew. The principal offset is cash conversion: six-month capex of $67.5 million exceeded $34.8 million of operating cash flow, contributing to a $62.8 million increase in net debt.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.2
What stood out
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Revenue grew 11.6% to $462.1 million
Q2 revenue was $462.1 million, up 11.6% from $414.2 million a year earlier. Foreign exchange contributed approximately 2% of quarterly revenue growth, while management cited higher volumes and selling prices as the primary drivers.
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Margins and operating profit expanded
Gross margin expanded 290 basis points year over year to 37.4% from 34.5%, and operating margin rose 270 basis points to 16.6% from 13.9%. Operating income increased 32.9% to $76.7 million.
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EPS increased 36.4% to $1.20
GAAP diluted EPS rose 36.4% to $1.20 from $0.88, while net earnings increased 36.6% to $51.4 million from $37.6 million.
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Color delivered 21% sales growth
Color was the principal growth engine: revenue increased 20.6% to $216.1 million and segment operating income rose 40.1% to $54.5 million. Management attributed growth partly to natural-colors conversion volumes, pricing, product mix, FX, and tariff refunds.
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All three operating segments grew
All operating segments expanded. Flavors & Extracts revenue increased 4.9% to $213.2 million, while Asia Pacific revenue increased 11.3% to $47.6 million.
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Portfolio optimization costs ended
The Portfolio Optimization Plan generated no costs in Q2 2026, versus $3.3 million of costs in Q2 2025. The company states that all actions contemplated under the plan are complete.
What to watch
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Capex exceeded operating cash flow
Six-month operating cash flow was $34.8 million, down from $39.3 million, while capital expenditures increased to $67.5 million from $38.0 million. This produced calculated six-month free cash flow of negative $32.7 million and reflects inventory cash usage and natural-colors conversion investment.
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Debt funding needs remain elevated
Net debt increased $62.8 million in the first six months of 2026, primarily to support natural-colors conversion capital expenditures. Management expects to increase indebtedness further in the short term for operating and capital-expenditure cash requirements.
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Tariff-refund benefit will not recur
The $4.8 million of tariff refunds improved Q2 gross margin by approximately 100 basis points and operating margin by approximately 100 basis points. Management received approximately $5 million of IEEPA refunds through June 30, 2026 and does not anticipate additional refunds, while expecting incremental tariff costs on certain materials and finished goods.
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Higher debt and input costs pressure profits
Interest expense increased to $8.2 million in Q2 2026 from $7.4 million in Q2 2025 because average outstanding debt increased. Higher raw-material costs and performance-based executive compensation also partially offset volume and pricing gains.
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No material risk-factor updates
Item 1A states there were no material changes to risk factors previously disclosed in the Form 10-K for the year ended December 31, 2025.
Management's outlook
The 10-Q does not provide numerical EPS or revenue guidance. Management expects short-term indebtedness to increase to fund natural-colors conversion operations and capital expenditures; it received approximately $5 million of IEEPA tariff refunds as of June 30, 2026 and does not anticipate further refunds.
Earlier filings 4
10-K · February 13, 2026
Sensient (SXT) presents a stable top-line recovery in 2025 with full-year revenue of approximately $1.611 billion (sum of quarterly revenues) and modest margin improvement, while free cash flow declined to $38 million…
10-Q · November 5, 2024
Sensient reported Q3 revenue of $392,613,000, up $28,784,000 (+7.9%) versus Q3 2023, with gross margin expanding to 33.2% and diluted EPS modestly higher at $0.77. All three reportable segments grew revenue and segment…
10-Q · August 7, 2024
Sensient reported Q2 revenue of $403.525M, up $29.212M (+7.8%) versus Q2 2023, but gross margin compressed slightly to 32.4% and operating income fell to $49.657M (-$1.934M vs. Q2 2023). Diluted EPS declined to $0.73…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.