Newell Brands (NWL) Q1 2026 earnings summary

Executive summary

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

• Turnaround strategy, productivity, and simplification efforts are driving sustained margin improvement and profitability.

• Structural changes, capability investments, and AI enablement have strengthened operations and execution.

• Despite a challenging macroeconomic environment, underlying category dynamics improved, and the company anticipates a return to top-line growth in Q2 2026.

Financial highlights

• Q1 2026 net sales were $1.55 billion, down 1.1% year-over-year; core sales declined 3.5%, both improving sequentially.

• Gross margin improved to 33.1% (normalized 33.2%), and normalized operating margin reached 4.8%, both up year-over-year.

• 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; normalized net loss was $21 million.

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

Outlook and guidance

• Full-year 2026 outlook raised: net sales flat to up 2%, core sales down 1% to up 1%, normalized EPS $0.56-$0.60, and normalized operating margin 8.6%-9.2%.

• Q2 2026 net and core sales expected flat to up 2%; normalized operating margin 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.

• Long-term targets include low single-digit core sales growth and 50 bps annual operating margin improvement.

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