Kraft Heinz beats first quarter 2026 estimates as organic sales decline a modest 0.4%, better than feared.

Kraft Heinz reported first quarter revenue of $6.05 billion, a 0.8% increase year-over-year, with an adjusted EPS of $0.58. Organic net sales declined 0.4%, a smaller contraction than analysts anticipated, as a 0.8% price increase was offset by a 1.2% drop in volume/mix. The company reaffirmed its full-year 2026 outlook.

Key Highlights

• Organic Net Sales fell 0.4%, a result of a 1.2% volume/mix decline that was not fully offset by a 0.8% increase in pricing.
• North American organic sales declined 1.1% on a 1.5% volume/mix drop, while Emerging Markets organic sales grew 3.8% driven by strong pricing.
• Adjusted Operating Income decreased 11.8% to $1.1 billion, which the company attributed to increased advertising expenses, cost inflation, and unfavorable volume/mix.
• Free Cash Flow increased 58.9% to $766 million, driven by inventory optimization and improved supplier payment terms.