Newell Brands (NWL) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded expectations across all key financial metrics, with all three segments delivering core sales growth above plan, driven by stronger consumer demand, innovation, and advertising investments.

• Net sales for Q1 2026 were $1.55 billion, down 1% year-over-year, primarily due to soft demand and unfavorable order timing, partially offset by product innovation and favorable pricing.

• Gross profit increased by $10 million to $513 million, with gross margin improving to 33.1% from 32.1% year-over-year.

• Six of the top 10 brands gained market share, and six delivered year-over-year point of sale growth for the first time in over four years.

• The company is launching 25 Tier 1 and Tier 2 innovations in 2026, up from 18 last year, spanning all business units.

Financial highlights

• Q1 net sales declined 1.1% year-over-year to $1.5 billion; core sales declined 3.5%, both improving sequentially.

• Gross margin increased to 33.1% (normalized 33.2%) from 32.1% year-over-year, driven by productivity and favorable net pricing.

• Normalized operating margin reached 4.8%, up 30 basis points year-over-year and above expectations; operating margin improved to 2.2%.

• Normalized EPS loss of $0.05, ahead of guidance, with a zero normalized effective tax rate; net loss narrowed to $33 million from $37 million prior year.

• Operating cash outflow was $233 million, consistent with seasonal trends and higher inventory.

Outlook and guidance

• Full-year net sales outlook raised to flat to +2% (prior: -1% to +1%); core sales now expected at -1% to +1% (prior: -2% to flat); normalized EPS range increased to $0.56-$0.60.

• Normalized operating margin outlook unchanged at 8.6%-9.2%.

• Q2 2026 net and core sales expected to be flat to up 2%; normalized operating margin projected at 9.6%-10.2%; normalized EPS $0.16-$0.19.

• Operating cash flow for the year expected at the lower end of $350-$400 million.

• Management expects ongoing macroeconomic and geopolitical volatility, inflationary pressures, and uncertain consumer demand to persist through 2026.