Ingredion Q4 Earnings Miss Expectations, Stock Rises Despite Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy INGR?
Source: seekingalpha
Ingredion Inc's stock rose by 3.35% and reached a 20-day high despite the broader market decline, with the Nasdaq-100 down 1.19% and the S&P 500 down 0.55%.
The company reported a Q4 non-GAAP EPS of $2.53, missing expectations by $0.08, and a revenue of $1.76 billion, down 2.2% year-over-year, which fell short of market expectations. This disappointing performance reflects weak demand amid macroeconomic uncertainties, leading to a cautious outlook for 2026 with EPS expectations ranging between $11.00 and $11.80, below the consensus of $11.38. Despite these challenges, the stock's rise suggests a potential sector rotation or investor optimism in the face of broader market weakness.
The implications of these results may lead to increased stock price volatility as investors reassess Ingredion's positioning in health-focused food trends. The cautious future outlook could undermine investor confidence, but the stock's performance today indicates a divergence from the overall market sentiment.
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Analyst Views on INGR
Wall Street analysts forecast INGR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INGR is 125.50 USD with a low forecast of 119.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 118.890
Low
119.00
Averages
125.50
High
136.00
Current: 118.890
Low
119.00
Averages
125.50
High
136.00
About INGR
Ingredion Incorporated is a global ingredient solutions provider serving customers in nearly 120 countries. The Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. Its segments include Texture & Healthful Solutions (T&HS), Food & Industrial Ingredients - Latin America (F&II - LATAM) and Food & Industrial Ingredients - U.S./Canada (F&II - U.S./Canada). Its product lines include starches and sweeteners, animal feed products and edible corn oil. Its starch-based products include both food-grade and industrial starches, as well as biomaterials and non-GMO (genetically modified organism) products. Its sweetener products include glucose syrups, high maltose syrups, high fructose corn syrup, caramel color, dextrose, polyols, maltodextrins, glucose and syrup solids, high-intensity sweeteners, and various non-GMO products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ingredion Reports Mixed Q4 2025 Earnings Results
- Sales Decline: Ingredion reported net sales of $1.8 billion in Q4 2025, a 2% decrease year-over-year, reflecting ongoing challenges in the Food and Industrial Ingredients sector, particularly in the soft beverage sweetener market.
- Slight Margin Decrease: The gross margin for Q4 2025 was 24.5%, slightly lower than expected due to rising manufacturing costs, although the full-year gross margin improved to 25.3%, indicating overall profitability enhancement.
- Operating Income Growth: The company reported operating income of $1.016 billion for the full year 2025, with an adjusted figure of $1.028 billion, showcasing strong performance in the Texture and Healthful Solutions segment, which drove a 4.5% year-over-year increase in earnings per share.
- Strategic Investments and Cost Savings: Ingredion achieved $59 million in Cost2Compete savings in 2025, exceeding the $50 million target, while also investing in a starch modernization project in Indianapolis and expanding a blending center in Maryland, further enhancing production capabilities.
See More
Ingredion Reports Q4 2025 Earnings with Strategic Insights and Challenges
- Performance Highlights: Ingredion reported full-year net sales of $7.2 billion for 2025, down 3% year-over-year, yet gross profit increased by 2% with a gross margin rise to 25.3%, indicating resilience amid challenges.
- Growth Drivers: The company achieved its seventh consecutive quarter of volume growth in Texture and Healthful Solutions, up 4%, driven by strong demand for clean label ingredients, particularly in the Asia Pacific and U.S./Canada markets.
- Strategic Investments: The completion of a starch modernization project at the Indianapolis facility and the expansion of the Belcamp blending center are expected to increase revenue potential by $30 million annually, enhancing the competitiveness of customized solutions.
- Future Outlook: For 2026, net sales are anticipated to grow modestly, with adjusted EPS expected to range between $11 and $11.80, despite operational challenges at the Argo facility and rising manufacturing costs.
See More
Ingredion Q4 Earnings Miss Expectations with Lower Revenue
- Earnings Performance: Ingredion reported a Q4 non-GAAP EPS of $2.53, missing expectations by $0.08, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $1.76 billion, down 2.2% year-over-year, fell short of market expectations, reflecting weak demand amid macroeconomic uncertainties that negatively impacted performance.
- Cautious Future Outlook: Ingredion expects its 2026 reported and adjusted EPS to range between $11.00 and $11.80, below the consensus of $11.38, suggesting a lack of confidence in future growth that may affect stock performance.
- Potential Market Reaction Risks: Given the disappointing results, investors may adopt a cautious stance towards Ingredion's future performance, potentially leading to increased stock price volatility and impacting the company's positioning in health-focused food trends.
See More
Ingredion Set to Announce Q4 Earnings on February 3rd
- Earnings Announcement: Ingredion (INGR) is scheduled to release its Q4 earnings on February 3rd before market open, with consensus EPS estimate at $2.61, reflecting a 0.8% year-over-year decline, and revenue estimate at $1.79 billion, down 0.6% year-over-year, indicating challenges in the current economic environment.
- Historical Performance Review: Over the past two years, Ingredion has beaten EPS estimates 88% of the time, yet has failed to surpass revenue estimates, suggesting strong profitability but difficulties in revenue growth, which may concern investors.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen three upward revisions and two downward, while revenue estimates have faced no upward revisions and four downward adjustments, reflecting a cautious market outlook on Ingredion's future performance that could impact investor confidence.
- Market Reaction: Following the Q3 earnings report, Barclays downgraded Ingredion's rating, indicating market concerns about its growth potential, while Palm Valley Capital Fund purchased Ingredion shares in Q4, suggesting that some investors remain optimistic about its long-term prospects.
See More
Ingredion CFO James Gray Announces Retirement Effective March 31
- Executive Change: Ingredion announced the retirement of Executive Vice President and CFO James Gray effective March 31, and while a successor has yet to be named, this move may impact investor confidence in the company's financial stability.
- Market Reaction: Following the announcement of Gray's retirement, Ingredion's stock performance is under scrutiny, particularly against the backdrop of macroeconomic uncertainty and health-focused food trends, intensifying investor expectations for future financial leadership.
- Financial Performance: Ingredion's recent Q3 2025 earnings report indicates that despite challenges, the company's market positioning aligns with health food trends, potentially providing a solid strategic direction for the incoming CFO.
- Rating Downgrade: After the Q3 results were released, Barclays downgraded Ingredion's rating, reflecting a cautious market sentiment regarding the company's future performance, especially in light of the executive transition.
See More
Lyric Appoints Halsey Wise as CEO to Drive Growth in Payment Integrity AI
- Leadership Change: Lyric announces the immediate appointment of Halsey Wise as CEO, succeeding Raj Ronanki, who transitions to an advisory role, reflecting a commitment to leadership continuity and strategic direction.
- Industry Experience: Wise brings over 30 years of experience in leading healthcare and software companies, having served as CEO of Intergraph and MedAssets, and is expected to leverage his extensive industry knowledge to drive innovation and market expansion at Lyric.
- Platform Advantage: Lyric's AI-driven platform, Lyric42, is built on 35 years of clinical expertise and integrates real-time data across 190 million lives, aiming to reduce wasted healthcare spending and ensure fast, accurate payments, thereby enhancing client transparency and satisfaction.
- Market Recognition: Lyric has been recognized as the 2025 Best in KLAS for Pre-payment Accuracy and Integrity, underscoring its leadership position in the industry and commitment to delivering value to clients, which is expected to further strengthen its competitive edge.
See More
Ingredion Reports Mixed Q4 2025 Earnings Results
- Sales Decline: Ingredion reported net sales of $1.8 billion in Q4 2025, a 2% decrease year-over-year, reflecting ongoing challenges in the Food and Industrial Ingredients sector, particularly in the soft beverage sweetener market.
- Slight Margin Decrease: The gross margin for Q4 2025 was 24.5%, slightly lower than expected due to rising manufacturing costs, although the full-year gross margin improved to 25.3%, indicating overall profitability enhancement.
- Operating Income Growth: The company reported operating income of $1.016 billion for the full year 2025, with an adjusted figure of $1.028 billion, showcasing strong performance in the Texture and Healthful Solutions segment, which drove a 4.5% year-over-year increase in earnings per share.
- Strategic Investments and Cost Savings: Ingredion achieved $59 million in Cost2Compete savings in 2025, exceeding the $50 million target, while also investing in a starch modernization project in Indianapolis and expanding a blending center in Maryland, further enhancing production capabilities.
See More
Ingredion Reports Q4 2025 Earnings with Strategic Insights and Challenges
- Performance Highlights: Ingredion reported full-year net sales of $7.2 billion for 2025, down 3% year-over-year, yet gross profit increased by 2% with a gross margin rise to 25.3%, indicating resilience amid challenges.
- Growth Drivers: The company achieved its seventh consecutive quarter of volume growth in Texture and Healthful Solutions, up 4%, driven by strong demand for clean label ingredients, particularly in the Asia Pacific and U.S./Canada markets.
- Strategic Investments: The completion of a starch modernization project at the Indianapolis facility and the expansion of the Belcamp blending center are expected to increase revenue potential by $30 million annually, enhancing the competitiveness of customized solutions.
- Future Outlook: For 2026, net sales are anticipated to grow modestly, with adjusted EPS expected to range between $11 and $11.80, despite operational challenges at the Argo facility and rising manufacturing costs.
See More
Ingredion Q4 Earnings Miss Expectations with Lower Revenue
- Earnings Performance: Ingredion reported a Q4 non-GAAP EPS of $2.53, missing expectations by $0.08, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $1.76 billion, down 2.2% year-over-year, fell short of market expectations, reflecting weak demand amid macroeconomic uncertainties that negatively impacted performance.
- Cautious Future Outlook: Ingredion expects its 2026 reported and adjusted EPS to range between $11.00 and $11.80, below the consensus of $11.38, suggesting a lack of confidence in future growth that may affect stock performance.
- Potential Market Reaction Risks: Given the disappointing results, investors may adopt a cautious stance towards Ingredion's future performance, potentially leading to increased stock price volatility and impacting the company's positioning in health-focused food trends.
See More
Ingredion Set to Announce Q4 Earnings on February 3rd
- Earnings Announcement: Ingredion (INGR) is scheduled to release its Q4 earnings on February 3rd before market open, with consensus EPS estimate at $2.61, reflecting a 0.8% year-over-year decline, and revenue estimate at $1.79 billion, down 0.6% year-over-year, indicating challenges in the current economic environment.
- Historical Performance Review: Over the past two years, Ingredion has beaten EPS estimates 88% of the time, yet has failed to surpass revenue estimates, suggesting strong profitability but difficulties in revenue growth, which may concern investors.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen three upward revisions and two downward, while revenue estimates have faced no upward revisions and four downward adjustments, reflecting a cautious market outlook on Ingredion's future performance that could impact investor confidence.
- Market Reaction: Following the Q3 earnings report, Barclays downgraded Ingredion's rating, indicating market concerns about its growth potential, while Palm Valley Capital Fund purchased Ingredion shares in Q4, suggesting that some investors remain optimistic about its long-term prospects.
See More
Ingredion CFO James Gray Announces Retirement Effective March 31
- Executive Change: Ingredion announced the retirement of Executive Vice President and CFO James Gray effective March 31, and while a successor has yet to be named, this move may impact investor confidence in the company's financial stability.
- Market Reaction: Following the announcement of Gray's retirement, Ingredion's stock performance is under scrutiny, particularly against the backdrop of macroeconomic uncertainty and health-focused food trends, intensifying investor expectations for future financial leadership.
- Financial Performance: Ingredion's recent Q3 2025 earnings report indicates that despite challenges, the company's market positioning aligns with health food trends, potentially providing a solid strategic direction for the incoming CFO.
- Rating Downgrade: After the Q3 results were released, Barclays downgraded Ingredion's rating, reflecting a cautious market sentiment regarding the company's future performance, especially in light of the executive transition.
See More
Lyric Appoints Halsey Wise as CEO to Drive Growth in Payment Integrity AI
- Leadership Change: Lyric announces the immediate appointment of Halsey Wise as CEO, succeeding Raj Ronanki, who transitions to an advisory role, reflecting a commitment to leadership continuity and strategic direction.
- Industry Experience: Wise brings over 30 years of experience in leading healthcare and software companies, having served as CEO of Intergraph and MedAssets, and is expected to leverage his extensive industry knowledge to drive innovation and market expansion at Lyric.
- Platform Advantage: Lyric's AI-driven platform, Lyric42, is built on 35 years of clinical expertise and integrates real-time data across 190 million lives, aiming to reduce wasted healthcare spending and ensure fast, accurate payments, thereby enhancing client transparency and satisfaction.
- Market Recognition: Lyric has been recognized as the 2025 Best in KLAS for Pre-payment Accuracy and Integrity, underscoring its leadership position in the industry and commitment to delivering value to clients, which is expected to further strengthen its competitive edge.
See More
