Kraft Heinz (KHC) Q1 2026 Earnings
How Did KHC Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +0.73%.
Did KHC Beat Earnings? Q1 2026 Results
Yes. Kraft Heinz reported Q1 2026 earnings of $0.58 a share on May 6, 2026, beating the $0.50 consensus estimate by 15.4%. Revenue was $6.0B against a $5.9B estimate.
Kraft Heinz delivered a stronger-than-expected first quarter, posting adjusted EPS of $0.58 against a consensus estimate of $0.50, a 15.38% beat that extended the company's streak of topping Wall Street's earnings expectations to four consecutive quarters. Revenue came in at $6.05 billion, ahead of the $5.88 billion estimate by 2.85% and up 0.8% year over year, though the surface-level headline masked underlying pressure, with organic net sales slipping 0.4% as volume weakness in coffee, cold cuts, and Indonesia weighed on results. A sharply lower tax provision, $211 million versus $304 million a year ago, was the single most material driver lifting GAAP net income 11.9% to $799 million even as Adjusted Operating Income fell 11.8% to $1.06 billion amid heavier marketing spend and manufacturing cost inflation. Free cash flow was a genuine bright spot, jumping 58.9% to $766 million. For the full year, management reiterated guidance for Adjusted EPS of $1.98 to $2.10, with organic net sales expected to decline 1.5% to 3.5%, reflecting a volatile consumer backdrop and roughly $600 million in planned incremental investments.
- Pricing increases in certain categories to mitigate higher input costs contributed 0.8pp to organic net sales
- Volume/mix declined 1.2pp, driven by declines in coffee, cold cuts, and Indonesia
- Increased advertising expenses pressured Adjusted Operating Income
- Inflationary pressures in manufacturing and logistics costs outpaced efficiency initiatives
- Lower income tax expense boosted GAAP net income and diluted EPS
- Favorable working capital changes from inventory optimization and improved supplier payment terms drove operating cash flow growth of 39.7%
- Certain nonrecurring procurement cost recoveries partially offset cost headwinds
- Favorable foreign currency impact of 1.9pp on reported net sales
“Our first quarter results demonstrate steady progress, and I am encouraged by the early signs of momentum we're building. The investments we made in 2025 are now driving early traction, with improving market share trends, particularly within must-win parts of our portfolio like Taste Elevation. This is proof that our brands respond well when we invest behind them.”
Kraft Heinz CEO, on the earnings call
What Was Kraft Heinz's Outlook in Q1 2026?
Kraft Heinz reiterated its full-year 2026 outlook: Organic Net Sales down 1.5% to 3.5% (including ~100 bps SNAP headwind); Constant Currency Adjusted Operating Income down 14% to 18% (reflecting ~$600 million in incremental investments and ~300 bps headwind from lapping lower variable compensation in 2025); Adjusted Gross Profit Margin down 25 to 75 basis points; Adjusted EPS of $1.98 to $2.10; effective tax rate on Adjusted EPS of approximately 25%; interest expense of approximately $920 million; other income of approximately $200 million; and Free Cash Flow Conversion of approximately 100%.
KHC YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $6.0B | $6.0B | +0.8% |
| Gross Profit | $2.2B | $2.1B | +7.5% |
| Operating Income | $1.1B | $1.2B | −4.3% |
| Net Income | $799.0M | $712.0M | +12.2% |
KHC Revenue by Segment
KHC Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.