Scotts Miracle-Gro Q3 2026 sales fall as hydroponics bets rise

Scotts Miracle-Gro (SMG) will release its third-quarter earnings for 2026 on November 6, giving investors another look at how the lawn and garden giant is navigating shifting consumer habits and rising costs.

The call comes as the company faces pressure from both sides: demand for home-improvement and outdoor living surged during the pandemic, but that tailwind is fading as inflation cools discretionary spending. Scotts has also been expanding into hydroponics and cannabis-adjacent products, betting on long-term growth in controlled-environment agriculture. Analysts will be watching whether those bets are paying off as legacy lawn-and-garden sales slow.

In Q2 2026, Scotts reported net sales of $1.45 billion, up 3% year-over-year, but gross margins slipped to 34% from 37% a year earlier as input costs rose. The company reaffirmed its full-year guidance, though executives cautioned that retail inventory levels remain elevated, which could crimp orders in the back half of the year. Investors will likely press management on pricing power, inventory burn-off, and the pace of its hydroponics rollout.

What’s at stake is Scotts’ ability to balance its traditional business with newer high-margin segments. If the earnings call signals weaker demand or margin compression, the stock could come under pressure. But if hydroponics shows real traction, the company may finally justify its diversification push. Either way, November 6 will be a key test for a stock that’s been a rollercoaster since the pandemic boom peaked.