Shares of Teh J.M. Smucker Co. (SJ) experienced a significant drop in premarket trading Tuesday. This decline followed the release of a report indicating weaker-than-anticipated sales for the fiscal 2025 fourth quarter and lower profit projections for fiscal 2026,falling short of analysts’ expectations.

The company, known for its Smucker’s jellies and jams, JIF peanut butter, and Folgers coffee, reported adjusted earnings per share (EPS) of $2.31. Net sales decreased by 3% year-over-year,reaching $2.14 billion. According to Visible Alpha estimates, analysts had anticipated $2.24 in EPS and $2.19 billion in sales.

The company’s U.S. Retail Coffee segment saw an 11% increase in sales, reaching $738.6 million,while the International and Away From Home division experienced a 3% rise to $308.9 million. The U.S. Retail Frozen Handheld and Spreads segment remained flat at $449.8 million. however, there were declines in the Sweet Baked Snacks segment (26% decrease to $251.0 million) and the U.S. Retail Pet Food segment (13% decrease to $395.5 million).

Market analysts had foreseen a decline in sales for Smucker’s Sweet Baked Snacks and U.S. Retail Pet Foods divisions. Gains were projected for the U.S. Retail Coffee, U.S. Retail Frozen Handheld and Spreads, and International and Away From Home divisions.

Adjusted EPS Forecasted to Decline in Fiscal Year 2026

“continues to operate in a dynamic and evolving external environment, including tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation, and changes in consumer behaviors”

Smucker has released its initial fiscal 2026 projections, anticipating adjusted EPS to range from $8.50 to $9.50. This is a decrease from the $10.12 reported in fiscal 2025. Sales are expected to grow by 2% to 4% from the $8.73 billion recorded in the recently concluded fiscal year. Current analyst expectations are higher, with an adjusted EPS of $10.28 and revenue growth of approximately 2%.

The company stated that it “continues to operate in a dynamic and evolving external environment, including tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation, and changes in consumer behaviors that impact its fiscal year 2026 outlook.” Smucker added that these projections are “based on its current understanding of these factors.”

Shares of J.M. Smucker,which had increased by less than 2% as the beginning of the year,fell by 8.5% shortly after the report was made public.