IFF · 10-Q · 2026Q2 · Full report

Operating Expense Trends

INTERNATIONAL FLAVORS & FRAGRANCES INC · 2026-08-04 · Importance 42 · Surprise 14 · In source text

Second-quarter R&D expense was unchanged at $170 million, representing 8.7% of sales versus 8.9% in 2025. Second-quarter S&A expense increased $28 million to $437 million, or 22.4% of sales, primarily because of higher incentive compensation and regulatory costs. Six-month R&D declined $1 million to $324 million, while six-month S&A declined $28 million to $771 million as lower divestiture-related consulting costs and divestiture impacts outweighed higher incentive compensation and regulatory costs.

Key facts

• S&A expenses increased $28 million to $437 million (22.4% of sales) in Q2 2026 compared to $409 million (21.3% of sales) in Q2 2025 primarily driven by higher incentive compensation expense and regulatory costs. source
• R&D expenses decreased $1 million to $324 million (8.4% of sales) in the first six months of 2026 compared to $325 million (8.2% of sales) in the 2025 period. source
• Amortization expenses increased to $166 million in the first six months of 2026 compared to $162 million in the 2025 period, primarily driven by the impact of foreign currency exchange rates. source
• R&D expenses were flat at $170 million in the second quarter of 2026 (8.7% of sales) and in the second quarter of 2025 (8.9% of sales). source
• Other expense, net, was $33 million in the first six months of 2026 compared to $39 million in the 2025 period, primarily due to decreased foreign exchange losses partially offset by increased pension-related benefit. source
• Amortization of acquisition-related intangibles was $82 million in the second quarter of 2026 and 2025. source
• Other expense, net, remained flat at $20 million in the second quarter of 2026 and 2025. source

Impact estimates