Did Kraft Heinz change its 2026 guidance?

No. The company stated it is reaffirming its fiscal 2026 outlook, including Organic Net Sales down 1.5% to 3.5%, Constant Currency Adjusted Operating Income down 14% to 18%, Adjusted EPS of $1.98 to $2.10, and Free Cash Flow Conversion of approximately 100%. It also updated certain items: an effective tax rate on Adjusted EPS of about 25%, interest expense of about $920 million, and other income of about $200 million.

Why did Adjusted Operating Income fall while GAAP EPS rose?

Adjusted Operating Income fell 11.8% due to higher advertising, inflation in manufacturing and logistics that outpaced efficiency gains, and unfavorable volume/mix. GAAP diluted EPS rose 13.6% mainly because of lower income tax expense and favorable other expense/(income), partially offset by the lower operating income. GAAP results also included unrealized gains on commodity hedges of $178 million, which are excluded from the adjusted figures.

What drove the strong cash flow in the quarter?

Operating cash flow rose 39.7% to $1.01 billion, primarily from favorable working capital changes, including inventory optimization, improved supplier payment terms, and favorable changes in collateral receipts related to commodity derivative margin requirements. Free Cash Flow was $766 million, up 58.9%.

How did the company's capital return activity look in the first quarter?

Kraft Heinz paid $474 million in cash dividends and did not repurchase any shares under its publicly announced program. As of March 28, 2026, approximately $1.5 billion of common stock repurchase authorization remained.

KHC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.

The Kraft Heinz Company reported first quarter 2026 results for the period ended March 28, 2026, in a press release furnished as Exhibit 99.1.

Net sales rose 0.8% to $6.05 billion^a, including a 1.9 percentage point favorable currency impact and a 0.7 percentage point unfavorable divestiture impact. Organic Net Sales decreased 0.4%, with volume/mix down 1.2 percentage points and price up 0.8 percentage points. North America net sales declined 0.7%, while Emerging Markets grew 7.6% and International Developed Markets grew 3.2%.

Profitability was mixed. GAAP operating income fell 4.3% to $1.15 billion^b, and GAAP diluted EPS rose 13.6% to $0.67, helped by lower income tax expense and unrealized commodity hedge gains. Adjusted Operating Income fell 11.8% to $1.06 billion, driven by higher advertising, manufacturing and logistics inflation, and unfavorable volume/mix.

Adjusted EPS was $0.58^c, down 6.5%. Cash generation strengthened: operating cash flow was $1.01 billion, up 39.7%, and Free Cash Flow was $0.77 billion, up 58.9%, aided mainly by working capital changes. The company paid $474 million in dividends and repurchased no shares under its program, leaving approximately $1.5 billion of authorization.

Management reaffirmed its full-year 2026 outlook, including Organic Net Sales down 1.5% to 3.5%, Constant Currency Adjusted Operating Income down 14% to 18% with about $600 million^d of incremental investments, and Adjusted EPS of $1.98 to $2.10. Management noted a volatile operating environment, rising inflationary pressures, and persistently low consumer sentiment, and said it retains flexibility to increase investments where returns are strong.

02—Key points

Key Highlights

Net sales rose 0.8% to $6,047 million, but Organic Net Sales declined 0.4% as volume/mix fell 1.2 percentage points.
North America net sales declined 0.7%, while Emerging Markets rose 7.6% and International Developed Markets rose 3.2%.
Adjusted Operating Income fell 11.8% to $1,058 million, driven by advertising costs, manufacturing and logistics inflation, and unfavorable volume/mix.
GAAP diluted EPS increased 13.6% to $0.67, while Adjusted EPS decreased 6.5% to $0.58.
Free Cash Flow rose 58.9% to $766 million, with Free Cash Flow Conversion of 111%, largely from working capital changes.
No shares were repurchased in the quarter; dividends paid totaled $474 million and about $1.5 billion of repurchase authorization remains.
The 2026 outlook was reaffirmed, including Adjusted EPS of $1.98 to $2.10 and about $600 million of incremental investments.

03—Questions

Frequently Asked Questions

Did Kraft Heinz change its 2026 guidance?
No. The company stated it is reaffirming its fiscal 2026 outlook, including Organic Net Sales down 1.5% to 3.5%, Constant Currency Adjusted Operating Income down 14% to 18%, Adjusted EPS of $1.98 to $2.10, and Free Cash Flow Conversion of approximately 100%. It also updated certain items: an effective tax rate on Adjusted EPS of about 25%, interest expense of about $920 million, and other income of about $200 million.
Why did Adjusted Operating Income fall while GAAP EPS rose?
Adjusted Operating Income fell 11.8% due to higher advertising, inflation in manufacturing and logistics that outpaced efficiency gains, and unfavorable volume/mix. GAAP diluted EPS rose 13.6% mainly because of lower income tax expense and favorable other expense/(income), partially offset by the lower operating income. GAAP results also included unrealized gains on commodity hedges of $178 million, which are excluded from the adjusted figures.
What drove the strong cash flow in the quarter?
Operating cash flow rose 39.7% to $1.01 billion, primarily from favorable working capital changes, including inventory optimization, improved supplier payment terms, and favorable changes in collateral receipts related to commodity derivative margin requirements. Free Cash Flow was $766 million, up 58.9%.
How did the company's capital return activity look in the first quarter?
Kraft Heinz paid $474 million in cash dividends and did not repurchase any shares under its publicly announced program. As of March 28, 2026, approximately $1.5 billion of common stock repurchase authorization remained.

04—Continue

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