International Flavors & Fragrances reported higher third-quarter sales but a loss from continuing operations as the New York company continued separating businesses designated for sale. The company's filing with the Securities and Exchange Commission shows why both figures matter: underlying demand improved across its operating divisions, while accounting charges connected to assets held for sale reduced reported profit.
Net sales from continuing operations were $1.94 billion, up 4 percent from $1.87 billion in the 2025 quarter. IFF calculated comparable currency-neutral growth of 5 percent after excluding divestiture and exchange-rate effects. Taste sales were $687 million, Health and Biosciences generated $566 million, and Scent produced $689 million. On the company's adjusted basis, each division recorded year-over-year growth.
Reported results were less favorable. IFF recorded a $134 million loss from continuing operations before taxes and a diluted continuing-operations loss of 50 cents per share. A $236 million loss on assets classified as held for sale was the largest unusual item shown in the filing's income statement. That charge helps explain the distance between the GAAP loss and management's adjusted operating measure.
Adjusted operating earnings before interest, taxes, depreciation and amortization were $403 million, with a 20.8 percent margin. The company also reported adjusted earnings per share excluding amortization of 83 cents. Those are non-GAAP figures built by removing specified expenses and other items. They can help compare operations over time, but they do not replace the cash-flow statement, balance sheet or reported earnings required under accounting rules.
Cash generation improved over the first nine months. Operating cash flow for continuing and discontinued operations was $820 million, up $288 million from the prior-year period. IFF defined free cash flow as operating cash flow minus capital spending and reported $371 million, an increase of $245 million. The company also completed a $500 million accelerated share-repurchase authorization, a use of capital that reduces shares but does not itself improve the operating business.
Management raised the bottom of its full-year ranges. IFF now expects 2026 sales of $7.5 billion to $7.6 billion, compared with an earlier $7.4 billion to $7.6 billion range. Its adjusted operating EBITDA forecast is $1.55 billion to $1.60 billion, up at the low end from $1.53 billion. The comparable currency-neutral sales-growth range moved to 3 to 4 percent, and the adjusted EBITDA-growth range to 5 to 8 percent.
The outlook still carries execution risk. IFF said profitability could soften in the fourth quarter, particularly in Health and Biosciences, because of higher costs and reinvestment. The planned Food Ingredients divestiture is expected to close by the end of the second quarter of 2027, subject to the transaction process. Until separation is complete, continuing and discontinued operations will make simple year-over-year comparisons less intuitive.
The quarter therefore presents two simultaneous stories. Demand and cash flow strengthened, supporting a narrower and slightly higher forecast, while the portfolio overhaul produced a substantial reported loss. Investors and employees following the transformation should track the closing of the divestiture, debt measures and the conversion of adjusted growth into reported profit. The SEC filing provides the reconciliations needed to keep those measures distinct. It also shows the balance-sheet context: cash was $272 million on September 30, inventories were $1.45 billion and long-term debt was $4.74 billion. Those figures help readers assess liquidity and working capital alongside the headline sales growth.
Primary sources: IFF third-quarter results filed at the SEC; IFF Form 8-K filing index at the SEC. Reviewed November 5, 2026. Development: Results filed November 3, 2026.