Kraft Heinz Company
Q2 2026 Earnings
Market Reaction
Did KHC Beat Earnings? Q2 2026 Results
Kraft Heinz Co. delivered a stronger-than-expected second quarter, beating Wall Street on both the top and bottom lines and extending its streak of consensus EPS beats to five consecutive quarters. The packaged food giant posted adjusted EPS of $0.56, topping the $0.53 consensus estimate by 5.60%, while revenue of $6.26 billion cleared the $6.12 billion estimate by 2.40%, even as net sales slipped 1.4% year over year. The key driver behind the top-line resilience was a 1.3 percentage point pricing tailwind, particularly in coffee and ready-to-drink beverages, which helped offset a 2.6 percentage point drag from volume and mix. Emerging Markets stood out as a bright spot, growing 10.4% on broad-based price and volume gains, while North America remained under pressure. Encouraged by better-than-expected brand performance, management raised its full-year Organic Net Sales outlook to a decline of 0.5% to 2.0% and lifted adjusted EPS guidance to $2.03 to $2.09, even as it committed to roughly $700 million in incremental brand investment for the year.
- Pricing increases in coffee and ready-to-drink beverages to offset higher input costs
- Emerging Markets volume/mix growth of 4.0 percentage points
- Favorable working capital changes, particularly in accounts payable, drove operating cash flow improvement
- Easter timing shift created approximately 100 basis point volume/mix headwind
- Inventory pull forward provided approximately 80 basis point volume/mix benefit
- Volume/mix declines in meats and spoonables categories
“We delivered another solid quarter, with results that exceeded our expectations across U.S. Retail, Global Away From Home, and Emerging Markets. Our brands are resonating with consumers, and our share performance is improving. The progress we are seeing gives us the confidence to raise our Organic Net Sales outlook for the year.”
Kraft Heinz CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, Kraft Heinz raised its Organic Net Sales outlook to down 0.5% to down 2.0% (from down 1.5% to down 3.5%), including an approximate 100 basis point impact from incremental SNAP headwinds. Constant Currency Adjusted Operating Income is expected to decline 16% to 18%. Adjusted Gross Profit Margin is expected to be down 10 to 50 basis points versus the prior year. Adjusted EPS is expected to be $2.03 to $2.09 (raised from $1.98 to $2.10), with an effective tax rate on Adjusted EPS of approximately 24.5%, interest expense of approximately $890 million, and other income of approximately $200 million. Free Cash Flow Conversion is expected to be approximately 110%. Incremental investments are being increased by $100 million to approximately $700 million in 2026.
KHC YoY Financials
KHC Revenue by Segment
KHC Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.