NEW YORK, August 5, 2026, 09:14 EDT — U.S. premarket
- The midpoint for organic-sales guidance increased by 125 basis points. The adjusted EPS midpoint climbed roughly 1%.
- Sales for the second quarter surpassed LSEG estimates by $142 million. Adjusted operating margin declined approximately 346 basis points.
- Stock rose 0.23% in premarket trading. FactSet listed a high price target of $26.
Kraft Heinz lifted its forecast for organic sales in 2026 following a quarterly revenue result that surpassed expectations. Shares showed little movement.
The range midpoint rose by 125 basis points, resulting in a 1.25% drop. However, the midpoint for adjusted EPS saw only a two-cent gain, reaching $2.06.
Constant-currency adjusted operating income now suggests a 17% decline at the midpoint, one point lower than previously indicated. Sales are rebounding ahead of profits.
| 2026 measure | Current outlook | Prior outlook | Midpoint move |
|---|---|---|---|
| Organic net sales | Decline of 2.0% to a rise of 0.5% | Decline of 3.5% to a rise of 1.5% | +125 bp |
| Constant-currency adjusted operating income | Drop of 18% to 16% | Drop of 18% to 14% | −100 bp |
| Adjusted gross margin | Decrease of 50 to 10 bp | Decrease of 75 to 25 bp | +20 bp |
| Adjusted EPS | $2.03–$2.09 | $1.98–$2.10 | +$0.02, or 1.0% |
| Free-cash-flow conversion | Roughly 110% | Roughly 100% | +10 points |
Source: Kraft Heinz. Company guidance was used to determine midpoint changes.
The company increased its 2026 investment by an additional $100 million, bringing the total close to $700 million. CEO Steve Cahillane stated, “We have seen that our brands respond well when we invest behind them.” Kraft Heinz Newsroom
The effect appeared during the quarter: net sales came in above forecasts, yet adjusted profit saw a steep decline compared with a year earlier.
| Q2 measure | Q2 2026 | Q2 2025 | Year-on-year | LSEG consensus | Surprise |
|---|---|---|---|---|---|
| Net sales | $6.262 billion | $6.352 billion | −1.4% | $6.120 billion | +$142 million; +2.3% |
| Adjusted EPS | $0.56 | $0.69 | −18.8% | $0.53 | +$0.03; +5.7% |
| Adjusted operating income | $1.041 billion | $1.276 billion | −18.4% | — | — |
| Adjusted operating margin | 16.6% | 20.1% | −346 bp | — | — |
Sources: Data from Kraft Heinz and LSEG provided to Reuters. Margin and surprise calculations have been made.
Profit fell as a result of increased advertising, soft volume/mix, inflation in logistics, and variable compensation. Cost-saving efforts and pricing improvements were not enough to counterbalance these pressures.
GAAP results were significantly in the red. The company posted a $6.4 billion operating loss, driven in part by a $7.4 billion non-cash impairment.
North America continued to be the primary source of weakness. Organic sales declined by 2.7%, and volume/mix was down 3.8 percentage points.
| Q2 segment | Net sales | Reported growth | Organic growth | Price | Volume/mix |
|---|---|---|---|---|---|
| North America | $4.626 billion | −2.7% | −2.7% | +1.1 points | −3.8 points |
| International Developed Markets | $865 million | −3.5% | −0.7% | +0.7 points | −1.4 points |
| Emerging Markets | $771 million | +10.4% | +8.5% | +4.5 points | +4.0 points |
| Kraft Heinz | $6.262 billion | −1.4% | −1.3% | +1.3 points | −2.6 points |
Information provided by Kraft Heinz.
Emerging markets saw an increase, with organic sales climbing 8.5%. Both higher pricing and strong volumes played a role.
CFO Andre Maciel stated, “Growth in Canada and Away From Home was offset by declines in U.S. Retail, which were primarily driven by meats.” Reuters
Kraft Heinz shares gained 0.23% to $26.70 ahead of the Nasdaq open. The increase trailed General Mills NYSE:GIS and Mondelēz International NASDAQ:MDLZ, but outperformed The Campbell’s Company NASDAQ:CPB.
| Company | Premarket price | Premarket move |
|---|---|---|
| Kraft Heinz | $26.70 | +0.23% |
| General Mills | $36.50 | +0.86% |
| Mondelēz International | $62.56 | +0.78% |
| The Campbell’s Company | $22.80 | +0.18% |
FactSet data presented by The Wall Street Journal. All quotes were recorded from 08:56 to 09:12 EDT.
FactSet’s published consensus stayed at Hold, with 15 analysts giving hold recommendations out of 22 total ratings. Shares traded in the premarket 15% higher than the average target of $23.13, and were 2.7% above the $26 top target.
| FactSet recommendation | Current | One month ago |
|---|---|---|
| Buy | 2 | 2 |
| Overweight | 0 | 0 |
| Hold | 15 | 16 |
| Underweight | 3 | 2 |
| Sell | 2 | 3 |
| Consensus | Hold | Hold |
Price targets stand at $26 for the high, $23 for the median, $19 for the low, with an average of $23.13. These figures may shift as analysts revise their models.
Cash flow provided some balance. Free cash flow in the first half increased by 10.3% to approximately $1.66 billion, and conversion was at 123%. Kraft Heinz distributed $949 million in dividends.
Risks: North American volume and mix declined by 3.8 points. Certain resin and metal hedges are set to expire in the third quarter, which will raise spot exposure in the fourth quarter. The outlook also includes a projected 100-basis-point SNAP headwind.
Another test will be margin conversion. The updated forecast still does not reflect sales gains translating to operating profit.
