Newell Brands Q2 profit beats on tariff recoveries, higher margins; outlook raised

Newell Brands

31/07/2026 11:40

Overview
U.S. consumer goods maker's Q2 sales rose 3%, slightly beating analyst expectations
Normalized EPS for Q2 beat consensus, driven by tariff recoveries and improved margins
Company raised full-year outlook for sales growth, normalized margin, and EPS

Outlook
Newell Brands sees Q3 net sales growth of 2% to 3%
Company raises full-year 2026 net sales outlook to 1% to 2% growth
Newell Brands expects full-year normalized EPS of $0.73 to $0.77

Result Drivers
TARIFF RECOVERIES - Q2 results included about $126 mln pretax from IEEPA tariff recoveries, boosting profit and normalized EPS
INNOVATION AND PROMOTION - Co said stronger innovation, higher advertising and promotional support, and improved go-to-market capabilities drove broad-based sales growth
PRODUCTIVITY AND OVERHEAD MANAGEMENT - Higher sales, gross productivity savings, and disciplined overhead management more than offset higher commodity and transportation costs, per CFO

Company press release: ID:nBw3PQ1J1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$1.99 bln
$1.98 bln (7 Analysts)
Q2 Normalized EPS
Beat
$0.42
$0.20 (9 Analysts)
Q2 EPS
 
$0.25
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the appliances, tools & housewares peer group is "hold"
Wall Street's median 12-month price target for Newell Brands Inc is $4.75, about 7.6% below its July 30 closing price of $5.14
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
July 30 - ACCO Brands Q2 sales beat on EPOS acquisition boost, outlook raised
July 29 - Reynolds Consumer Products Q2 revenue slightly beats expectations
July 29 - Electrolux beats profit forecast as savings pay off, but US demand weakens

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)