ATLANTA, August 1, 2026, 5:03 p.m. EDT — U.S. markets wrapped up trading for the weekend.
Newell Brands Inc. NASDAQ:NWL ended Friday trading at $5.60, rising 8.95%. The company reported its first quarterly sales increase in over four years. Shares reached $7.13 before giving up the bulk of those gains.
The turnaround revealed a division in the outcomes. Newell’s rebound in sales seems more widespread. The company’s increased full-year profit outlook was less definite.
Newell’s initial full-year normalized EPS guidance midpoint advanced by 17 cents, climbing from 58 cents to 75 cents.
This equaled the 17-cent gain from 2025 IEEPA tariff reimbursements. Management included this recovery on both sides of its forecast. Without the benefit, the range of $0.56 to $0.60 remained the same.
The gap in quarterly EPS is also reflected.
| Second-quarter normalized EPS breakdown | Per share |
|---|---|
| Normalized EPS as reported | $0.42 |
| Deduct: recovery of 2025 tariff fees | ($0.17) |
| Deduct: recovery related to Q1 2026 tariffs | ($0.04) |
| Estimated EPS without both recoveries | $0.21 |
| Newell’s previous guidance for second-quarter | $0.16–$0.19 |
| Normalized EPS for second-quarter 2025 | $0.24 |
On that strict measure, Newell topped its guidance ceiling by two cents, but remained three cents below the figure achieved a year earlier.
Sales provided a clearer indication. Net sales climbed 3.0% to $2.0 billion. Core sales were up 2.3%. Normalized gross margin expanded by 520 basis points to reach 40.8%.
Expansion was seen across more areas, with five out of six business units reporting growth. U.S. net sales increased by roughly 5%. Growth was recorded in seven of Newell’s ten leading brands.
The figures by segment indicate the areas that saw the most improvement.
| Segment | Net sales | Core-sales change | Normalized margin | Year-earlier margin |
|---|---|---|---|---|
| Home & Commercial Solutions | $903 million | -0.4% | 7.5% | 4.9% |
| Learning & Development | $851 million | +4.9% | 36.9% | 25.6% |
| Outdoor & Recreation | $240 million | +3.7% | 3.8% | 5.6% |
The majority of margin growth came from Learning & Development. Graco experienced a robust double-digit increase in U.S. retail sales. The company’s market share climbed by 2.7 percentage points since the start of the year. Although outdoor sales were higher, margins in that segment declined.
Newell additionally raised its early outlook for 2026 sales and cash flow. The EPS adjustment was higher, but the entire midpoint boost results from tariff recovery.
| Preliminary full-year 2026 measure | Updated outlook | Previous outlook |
|---|---|---|
| Net sales growth | +1% to +2% | 0% to +2% |
| Core sales growth | 0% to +1% | -1% to +1% |
| Normalized operating margin | 10.0%–10.4% | 8.6%–9.2% |
| Normalized EPS | $0.73–$0.77 | $0.56–$0.60 |
| Operating cash flow | Approximately $400 million | $350 million–$400 million |
The reported improvement in operating margin should be adjusted similarly. Without factoring in the 2025 tariff recovery, management projects a margin of 8.6% to 9.0%, with a midpoint of 8.8%, around 50 basis points higher than in 2025.
Inflation continues to pose a challenge. Newell has raised its expected pressure from inflation to roughly $200 million, double its previous forecast. Chief Executive Chris Peterson said that refunds and higher profitability would “effectively offset” this rise. As a result, there should be no need for “significant pricing action,” he said. The Wall Street Journal
Lauren Lieberman, an analyst at Barclays PLC LON:BARC, described the underlying margin performance as “notable.” Lieberman pointed to the increased impact of commodity and transportation costs. The Wall Street Journal
On Friday, investors distinguished between operational improvements and the refund benefit. Newell ended the session 21.5% under its intraday peak and gave up roughly 77% of its highest advance. Trading volume totaled 44.3 million shares, quadruple its 65-day average.
The stock finished the week up 10.2%. Other household product stocks showed little change on Friday.
| Company | Friday move | Closing price |
|---|---|---|
| Newell Brands Inc. NASDAQ:NWL | rose 8.95% | $5.60 |
| Helen of Troy Ltd. (NASDAQ:HELE) | dropped 0.93% | $27.63 |
| Spectrum Brands Holdings Inc. (NYSE:SPB) | added 0.02% | $88.77 |
| The Clorox Company NYSE:CLX | fell 1.22% | $95.53 |
Newell led all peers by no less than 8.9 percentage points. The margin points to company-specific gains rather than a broader sector rally.
The balance sheet continues to show constraints. Debt was $5.0 billion, with net leverage dropping to 4.8 times from 5.5 times. The addition of an $800 million asset-backed revolver extends overall maturity to 2031. Newell accessed $490 million at closing.
Key risks continue to be centered on inflation, leverage, and the sustainability of demand. Quarterly EPS, adjusted for refunds, was still lower than the prior year. Margins for the Outdoor segment fell as well, and cash flow was negative as of June.
The industry faces a new test next week as Clorox is set to report after Monday’s market close, providing insights into household demand and pricing. Newell will highlight early back-to-school trends as it updates its preliminary third-quarter sales-growth outlook to a range of 2% to 3%. The company maintains its normalized EPS projection between $0.18 and $0.20.
