Sensient Technologies Corporation delivered a strong third-quarter performance, posting a nearly 30% jump in diluted earnings per share as robust demand for its colors, flavors and specialty ingredients drove double-digit revenue growth.
The Milwaukee-based manufacturer reported revenue of $455.8 million for the quarter ended September 30, 2026, up 10.6% from $412.1 million in the same period last year. Revenue growth was 10.2% on a local currency basis.
Operating income surged 25.5% to $72.4 million, compared with $57.7 million a year earlier, while net earnings climbed 30.8% to $48.3 million from $37 million.
Diluted earnings per share rose 29.9% to $1.13, against 87 cents in the third quarter of 2025. On an adjusted local currency basis, diluted EPS increased 17.7%.
The company attributed its performance to growth across its three business segments, with its Color Group emerging as a major growth driver on the back of strong volume gains.
“Sensient delivered an exceptional third quarter, with results that reflect the strength of our strategy and unwavering focus on our customers.
"As we look ahead, I am encouraged by the momentum across our business, the opportunities in our markets, and the investments we are making to support growth. I remain very confident about our performance in 2026 and beyond,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.
The Color Group recorded the strongest revenue growth among Sensient's three segments, with third-quarter revenue jumping 18.1% to $210.3 million from $178.2 million a year earlier. On a local currency basis, revenue grew 17%.
The segment's operating income climbed 22% to $46.1 million, compared with $37.7 million in the year-ago quarter, reflecting the strength of volume growth.
The Flavors & Extracts Group generated revenue of $210 million, up 3.5% from $203 million in the third quarter of 2025. Growth was driven primarily by higher prices and increased volumes. Segment operating income rose 8.8% to $30.5 million from $28 million.
Asia Pacific also delivered strong gains. Revenue increased 12.4% to $47.3 million from $42.1 million, supported by higher volumes and prices across the region. Operating income jumped 29.6% to $12.4 million from $9.5 million.
Corporate and other operating expenses declined to $16.5 million from $17.6 million in the prior-year quarter. However, adjusted expenses on a local currency basis increased by $2.2 million, primarily due to higher performance-based compensation costs.
Sensient's strong quarterly performance added to solid growth in the first nine months of 2026.
Revenue for the nine months ended September 30 increased 11.1% to $1.35 billion from $1.22 billion in the corresponding period last year. Operating income jumped 27.8% to $215.9 million, while net earnings surged 32% to $143.9 million from $109 million.
Diluted earnings per share for the nine-month period increased to $3.37 from $2.56, representing growth of 31.6%.
Capital expenditure also increased significantly. Purchases of property, plant and equipment reached $105.8 million during the first nine months, compared with $57.8 million a year earlier.
Net cash generated from operating activities stood at $75.3 million, down from $83.3 million in the corresponding 2025 period.
Sensient maintained its full-year revenue and adjusted earnings growth expectations while raising the lower end of its diluted EPS guidance.
The company now expects 2026 GAAP diluted earnings per share of between $4.15 and $4.20, compared with its previous range of $4.10 to $4.20.
It continues to project high single-digit to low double-digit local currency revenue growth and mid-teen to high-teen growth in local currency adjusted EBITDA and adjusted diluted EPS.
