Kraft Heinz Reports Q3 2026 Results; Updates Full-Year 2026 Outlook

Executive Summary

On November 4, 2026, The Kraft Heinz Company (NASDAQ/NYSE: KHC) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), furnishing Exhibit 99.1 detailing its financial results for the third quarter ended September 26, 2026.

Key Financial Highlights (Q3 2026 vs. Q3 2025)

• Net Sales: Reached $6,115 million, down 2.0% year-over-year compared to $6,237 million in Q3 2025.
  • Organic Net Sales: Decreased 1.1%, driven by flat pricing (0.0 pp) and a 1.1 pp decline in volume/mix.
• Gross Profit & Margin:
  • Gross profit stood at $1,988 million compared to $1,990 million in Q3 2025 (-0.1%).
  • Reported gross profit margin expanded by 60 basis points to 32.5%, whereas Adjusted Gross Profit Margin declined 40 basis points to 31.9%.
• Operating Income: Fell 14.6% to $875 million (compared to $1,025 million in the prior-year period). Adjusted Operating Income fell 15.2% to $0.9 billion.
• Net Income: Net income declined 12.6% to $536 million (versus $613 million in Q3 2025).
  • Net income attributable to common shareholders was $544 million, down 11.5% from $615 million.

Segment Performance

• North America: Net sales decreased 3.4% to $4,485 million (organic net sales decreased 3.2%, with pricing at -0.8 pp and volume/mix down -2.4 pp).
• Europe and Pacific Developed Markets: Net sales decreased 5.6% to $910 million (organic net sales down 1.3%, with price at -0.4 pp and volume/mix at -0.9 pp).
• Emerging Markets: Robust performance with net sales rising 13.8% to $720 million (organic net sales up 15.6%, driven by +7.2 pp pricing and +8.4 pp volume/mix).

Year-to-Date Cash Flow & Capital Allocation

• Operating Cash Flow: Year-to-date net cash provided by operating activities reached $3.0 billion, a decrease of 4.1% year-over-year.
• Free Cash Flow: $2.4 billion, down 5.2% year-over-year, with a Free Cash Flow Conversion increase of 11 percentage points to 120%.
• Capital Return: Year-to-date return of capital to stockholders totaled $1.4 billion.

Guidance & Outlook

Management reported that turnaround efforts in North America and international growth acceleration plans remain on track. Supported by improving share and volume momentum, the company raised the lower end of its full-year 2026 Organic Net Sales outlook.