Kraft Heinz raises sales outlook despite second-quarter loss and weaker revenue

The food company beat Wall Street estimates for the quarter but warned that stepped-up marketing and brand investment will weigh on near-term profitability.

Summary

Kraft Heinz reported second-quarter 2026 results that topped Wall Street estimates on adjusted earnings and revenue, even as sales declined and the company posted another large quarterly loss tied to impairment charges. Revenue fell 1.4% from a year earlier to $6.26 billion, while adjusted earnings of 56 cents a share beat analyst expectations of 53 cents. The company recorded a GAAP loss of $4.60 per share and an operating loss of $6.43 billion, including $7.35 billion in noncash impairment charges. North America and International Developed Markets weakened, but Emerging Markets delivered double-digit revenue growth and stronger Heinz sales. Kraft Heinz raised its full-year organic net sales outlook to a decline of 0.5% to 2% and narrowed its adjusted EPS forecast to $2.03 to $2.09, while signaling a softer third quarter as higher marketing, brand and other investments pressure margins. Management said early results from its turnaround efforts have exceeded expectations, prompting an additional $100 million of spending to support growth into 2027.

Terms & Concepts
  • organic net sales: Revenue growth or decline measured after excluding impacts such as currency movements, acquisitions and other items, to show underlying business performance.
  • adjusted operating margin: A profitability measure showing operating income as a share of revenue after excluding certain items, used to track core margin performance.
  • noncash impairment charges: Accounting writedowns that reduce the reported value of assets without involving an immediate cash outflow.