Newell Brands Q1 2026 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NWL?
Source: seekingalpha
- Performance Exceeds Expectations: Newell Brands reported Q1 2026 core sales growth above expectations across all three segments, particularly with the Learning & Development segment returning to growth, indicating effective execution in innovation and marketing strategies.
- Increased Cost Pressures: While normalized gross margin improved to 33.2%, the company faces approximately $50 million in commodity and transportation inflation, highlighting ongoing challenges in cost management under the current trade policy environment.
- Upgraded Full-Year Outlook: The company raised its 2026 net sales expectations to flat to positive 2%, with core sales now projected between negative 1% and positive 1%, reflecting management's confidence in improving market demand.
- Cash Flow and Leverage: Q1 operating cash flow was an outflow of $233 million, with a net leverage ratio of approximately 5.4x, demonstrating the company's ongoing efforts in cash generation and deleveraging despite high interest expenses and restructuring costs.
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Analyst Views on NWL
Wall Street analysts forecast NWL stock price to rise
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 4.080
Low
3.75
Averages
4.81
High
7.00
Current: 4.080
Low
3.75
Averages
4.81
High
7.00
About NWL
Newell Brands Inc. is a global consumer goods company. The Company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The products offered under the Home and Commercial Solutions segment include commercial cleaning and maintenance solutions; closet and garage organization; hygiene systems and material handling solutions; household products, including kitchen appliances; food and home storage products; vacuum sealing products; gourmet cookware, bakeware and cutlery and home fragrance products. The Learning and Development segment offers products in baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based products and labeling solutions. The Outdoor and Recreation segment offers products for outdoor and outdoor-related activities. Its brands include Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Yankee Candle, and Paper Mate, among others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Company Announcement: Newell Brands has announced its financial results for the first quarter of 2026.
- Performance Overview: The results indicate key performance metrics and insights into the company's financial health during this period.
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- Earnings Announcement: Newell Brands (NWL) is set to release its Q1 2023 earnings report on May 1st before market open, with consensus EPS estimate at -$0.09 and revenue forecast at $1.51 billion, reflecting a 5.6% year-over-year decline.
- Historical Performance: Over the past two years, NWL has beaten EPS estimates 75% of the time but only 38% for revenue, indicating volatility in its earnings performance and raising concerns about consistency.
- Estimate Revisions: In the last three months, EPS estimates have seen one upward revision and seven downward adjustments, while revenue estimates experienced two upward and four downward revisions, suggesting market caution regarding the company's future outlook.
- Dividend Declaration: Newell Brands has declared a dividend of $0.07 per share, demonstrating a commitment to shareholders despite macroeconomic uncertainties, although perceptions of its long-term value may remain cautious.
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- Performance Exceeds Expectations: Newell Brands reported Q1 2026 core sales growth above expectations across all three segments, particularly with the Learning & Development segment returning to growth, indicating effective execution in innovation and marketing strategies.
- Increased Cost Pressures: While normalized gross margin improved to 33.2%, the company faces approximately $50 million in commodity and transportation inflation, highlighting ongoing challenges in cost management under the current trade policy environment.
- Upgraded Full-Year Outlook: The company raised its 2026 net sales expectations to flat to positive 2%, with core sales now projected between negative 1% and positive 1%, reflecting management's confidence in improving market demand.
- Cash Flow and Leverage: Q1 operating cash flow was an outflow of $233 million, with a net leverage ratio of approximately 5.4x, demonstrating the company's ongoing efforts in cash generation and deleveraging despite high interest expenses and restructuring costs.
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- Stock Performance: Newell Brands shares increased by 6% following positive annual sales forecasts.
- Sales Forecast: The company has raised its annual sales projections, indicating strong market performance.
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- Earnings Highlights: Newell Brands reported a Q1 GAAP EPS of -$0.08, beating expectations by $0.03, yet revenue of $1.5 billion fell short by $10 million, indicating ongoing challenges in the market.
- Q2 Outlook: The company projects net sales for Q2 2026 to be flat to up 2%, with core sales also expected to be flat to up 2%, reflecting efforts to stabilize revenue amidst market pressures.
- Full Year Outlook Update: The updated full-year 2026 outlook indicates net sales are expected to be flat to up 2%, while core sales have been adjusted to a decline of 1% to an increase of 1%, highlighting the impact of macroeconomic uncertainties on performance.
- Cash Flow Maintenance: Newell Brands maintains its operating cash flow outlook for 2026 in the range of $350 million to $400 million, suggesting a degree of cash flow stability to support operations and investments despite the challenges faced.
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