$KHC · Kraft Heinz Co
Kraft Heinz reported Q3 FY2026 (ended Sept 26, 2026) results: net sales of $6.115B, down 2.0% YoY; organic net sales down 1.1%; GAAP diluted EPS $0.46 (down 11.5%); adjusted EPS $0.53 (down 13.1%). Operating income fell 14.6% to $875M on inflation, higher variable comp, and increased advertising. The company raised the low end of FY2026 organic net sales guidance to -1.25% to -0.5% and lifted adjusted EPS guidance to $2.07–$2.13.
- Net sales fell 2.0% to $6.115B; organic net sales down 1.1%
- Adjusted EPS of $0.53 fell 13.1% YoY; GAAP EPS $0.46
- Operating income down 14.6% to $875M on inflation and higher ad spend
- FY2026 adjusted EPS guidance raised to $2.07–$2.13 from $2.03–$2.09
- Year-to-date free cash flow $2.4B, down 5.2%; $1.4B dividends paid
Extended-hours last trade $25.27, up 3.06% vs regular close, suggesting investors read the raised guidance favorably despite the EPS miss. Regular session closed at $24.52, down 1.64% on the day.
A mixed quarter — declining sales and EPS — offset by a guidance raise that signals management confidence in its turnaround, driving an after-hours pop.
Kraft Heinz's volume/mix declines in North America and Europe contrast with 15.6% organic growth in Emerging Markets, reflecting the broader packaged-food struggle to offset private-label and SNAP headwinds.
Incremental SNAP headwinds (~100bps) and ~$700M incremental investments pressure margins; goodwill and intangible impairments totaled $72M in Q3 and $7.4B year-to-date.