Ingredion Cuts 2026 Earnings Outlook After Argo Miss

The Tip Desk · November 7, 2026 · 3 min read

Adjusted diluted EPS guidance is now $9.25 to $9.70 after third-quarter adjusted EPS of $2.28 and a 19% drop in operating income.

Ingredion Incorporated (INGR), a global provider of ingredient solutions to food and beverage manufacturers, cut its full-year 2026 earnings outlook after a third quarter in which reported and adjusted operating income both fell 19% from a year earlier.

Reported diluted earnings were $2.23 a share and adjusted diluted earnings were $2.28 a share, compared with $2.61 and $2.75 in the third quarter of 2025. The company now expects full-year 2026 reported diluted EPS of $8.04 to $8.49 and adjusted diluted EPS of $9.25 to $9.70, down from the ranges reaffirmed after the second quarter of $9.15 to $9.75 and $10.30 to $10.90.

Chairman, president and CEO Jim Zallie said the third-quarter results fell short of expectations, largely due to Argo’s slower-than-anticipated financial recovery, with incremental pressure from higher input costs and consumer softness. He said production at Argo remained stable for a second consecutive quarter and inventories are largely rebuilt, but that high manufacturing costs and softer food and beverage demand impacted profitable volume growth. The company said it is lowering the full-year outlook primarily to reflect the slower earnings recovery in Food & Industrial Ingredients—U.S./CAN, along with higher input costs and softer demand.

Net sales were $1,792 million, down 1% and down 3% excluding foreign exchange, primarily reflecting the sale of the majority stake in the Pakistan business. Excluding Pakistan, net sales increased 2%, driven by favorable foreign exchange and higher volumes in F&II–LATAM and Texture & Healthful Solutions. Reported operating income was $201 million and adjusted operating income was $206 million; excluding foreign exchange, both were down 21%.

Texture & Healthful Solutions net sales were $610 million, up 1% including and excluding foreign exchange, with volume contributing $12 million. The company said volume grew for the tenth consecutive quarter, supported by clean-label demand. Segment operating income was $95 million, down 10% (9% excluding FX), which the company attributed to unfavorable tapioca costs and manufacturing expense and unfavorable price mix, partially offset by volumes and operating expense.

Food & Industrial Ingredients–LATAM net sales were $624 million, up 7% (2% excluding FX). Operating income was $109 million, down 6% (10% excluding FX), driven primarily by Mexico’s transactional currency impact and the August earthquake in Colombia, partially offset by higher volumes.

Food & Industrial Ingredients–U.S./CAN net sales were $504 million, down 1% (0% excluding FX). Operating income was $52 million, a $29 million decrease from the prior year, from higher manufacturing expenses at Argo and volume declines, partially offset by favorable price mix.

All Other net sales were $54 million, down 55%, reflecting the Pakistan sale. The segment’s operating loss widened to $11 million from $4 million.

For full-year 2026, the company now expects net sales to be flat, or flat to up low single digits excluding Pakistan. Reported operating income is expected down low double digits and adjusted operating income down mid-teens. Segment operating-income outlooks: Texture & Healthful Solutions flat to up low single digits; F&II–LATAM down mid-to-high single digits; F&II–U.S./CAN down 35–40%; All Other operating loss still about $15 million. Cash from operations is now expected at $650 million to $750 million; capital expenditures remain about $450 million to $490 million.

At September 30, 2026, total debt was $1.8 billion and cash including short-term investments was $993 million. The company declared a quarterly dividend of $0.83 a share on September 17, the 12th consecutive year of dividend increases, and said it is on track to complete its $100 million full-year share-repurchase target.