Kraft Heinz Q3 profit beats estimates on emerging markets growth
KHC•Kraft Heinz reported third-quarter sales of $6.12 billion and adjusted EPS of $0.53, beating analyst estimates of $6.09 billion and $0.42. It raised the low end of its 2026 adjusted EPS outlook to $2.07 and narrowed its expected organic sales decline.
1. Quarterly results
Kraft Heinz's third-quarter net sales fell 2% to $6.12 billion, slightly above analyst expectations. Adjusted EPS declined to $0.53 but beat the $0.42 consensus estimate. Organic net sales fell 1.1%, while emerging markets organic sales grew 15.6%, with positive contributions from price and volume/mix.
2. Sales and cost pressures
Volume/mix fell 1.1 percentage points, mainly due to declines in North America meats, sauces and beverages, and an inventory pull-forward into the second quarter. The company attributed lower operating income to higher procurement and logistics costs, variable compensation and advertising expenses.
3. 2026 outlook
Kraft Heinz raised its 2026 organic net sales outlook to a decline of 1.25% to 0.5%, from its prior outlook, and raised its adjusted EPS guidance to $2.07 to $2.13 from $2.03 to $2.09. It expects constant-currency adjusted operating income to fall 16% to 18% from the prior year.
