NWL · Newell Brands Inc.

Newell Brands' first quarter 2026 results exceeded internal expectations across all key metrics, driven by stronger-than-anticipated consumer demand and improved category dynamics. Net sales of $1.5 billion declined 1.1% year-over-year, but core sales declined 3.5%, which was better than the company's plan. Gross margin expanded 100 basis points to 33.1% (GAAP) and 70 basis points to 33.2% (normalized), benefiting from net pricing and productivity actions that offset volume declines, inflation, and tariff costs. Operating margin improved to 2.2% (GAAP) and 4.8% (normalized), reflecting disciplined cost management. Despite a net loss of $33 million (GAAP) and normalized net loss of $21 million, normalized diluted loss per share of $0.05 was better than the prior year's $0.01 loss. Management highlighted that all three segments—Home & Commercial Solutions, Learning & Development, and Outdoor & Recreation—delivered core sales above expectations, with Learning & Development posting 2.0% core sales growth. The company raised its full-year 2026 outlook, now expecting net sales growth of flat to 2% (previously -1% to 1%), core sales of -1% to 1% (previously -2% to flat), and normalized EPS of $0.56 to $0.60 (previously $0.54 to $0.60). For Q2 2026, the company guided net sales and core sales growth of flat to 2%, normalized operating margin of 9.6% to 10.2%, and normalized EPS of $0.16 to $0.19. The improved outlook reflects confidence in returning to top-line growth in the second quarter, supported by continued investment in innovation and advertising.