Kraft Heinz shares rise 3.8% after Q3 profit tops estimates

Kraft Heinz (KHC) said on Nov. 4 that third-quarter adjusted earnings were 53 cents per share, topping the 43 cents consensus estimate, and it raised the low end of its 2026 organic net sales outlook.

Shares rose 3.8% in regular trading as of 3:59 p.m. ET, from a regular-session close of $24.52.

Net sales of $6.12 billion were in line with the $6.15 billion consensus estimate and down 2.0% from a year earlier, the company's press release showed.

Kraft Heinz is one of the world's largest food and beverage companies, with approximately $25 billion in net sales in 2025.

“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” said Steve Cahillane, CEO of Kraft Heinz. Cahillane added that market share, sales and volume trends are improving in every region relative to last year.

Here's how the company did:

• Adjusted EPS: 53 cents vs. 43 cents expected, and 61 cents a year earlier
• Diluted EPS: 46 cents vs. 52 cents a year earlier
• Net sales: $6.12 billion vs. $6.24 billion a year earlier, in line with the $6.15 billion expected
• Adjusted operating income: $939 million vs. $1,106 million a year earlier

2026 guidance

The company now expects adjusted EPS of $2.07 to $2.13, up from the $2.03 to $2.09 range it gave on Aug. 5.

Organic net sales are now expected to fall 0.5% to 1.25%, from a decline of 0.5% to 2% in the prior outlook. The outlook includes an approximate 100 basis point impact from incremental SNAP headwinds.

Constant currency adjusted operating income is still expected to fall 16% to 18%. Free cash flow conversion is still expected at about 110%, and interest expense at about $890 million.

The effective tax rate on adjusted EPS is now expected at about 23.5%, down from about 24.5%.

“As we approach the end of the year, we are raising the low end of our Organic Net Sales outlook, reflecting the momentum we have built,” Cahillane said.

Segment results

North America net sales fell 3.4% from a year earlier, while Emerging Markets rose 13.8%. Volume and mix fell 1.1 percentage points across the company, with declines in North America across meats, sauces and refreshment beverages.

Europe and Pacific Developed Markets net sales fell 5.6%. The company said an inventory pull forward into the second quarter created an approximate 80 basis point headwind to volume and mix.

Costs and cash

Operating income fell 14.6% to $0.9 billion. The company said the decline was primarily due to inflationary pressures in procurement and logistics costs, higher variable compensation expense and increased advertising expenses.

Net cash from operating activities was $3.0 billion, down 4.1% from a year earlier. Free cash flow was $2.4 billion, down 5.2%.

Year to date, the company has returned $1.4 billion to stockholders through dividends. No shares were repurchased under its publicly announced share repurchase program.

Net income swung from a profit of $798.0 million in the first quarter of 2026 to a loss of $5.46 billion in the second quarter, according to its SEC filings.