KHC earnings analysis
What we found in KHC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
The Kraft Heinz Company reported a modest year-over-year revenue increase of 0.8% for Q1 FY2026, with net sales reaching $6.047 billion. The company beat EPS expectations, reporting $0.67 compared to $0.59 in the prior year, marking a 13.6% increase. Despite this improvement, several segments faced headwinds, leading to a drop in operating income, largely due to inflationary costs and increased advertising expenses.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Trends
- Net sales increased slightly by 0.8% year-over-year to $6.047 billion, up from $5.999 billion.
- EPS Beat Expectations
- Diluted EPS rose 13.6% to $0.67 from $0.59 in the prior year, exceeding the estimate.
- Strong Cash Flow Improvement
- Operating cash flow of $1 billion, up from $720 million in the prior year.
- Emerging Markets Growth
- Net sales in Emerging Markets surged 7.6% to $746 million from $694 million.
- Cost Management Initiatives
- Improved supplier payment terms contributed positively to cash flow despite inflationary pressures.
- Inventory Optimization Efforts
- Contributed to favorable changes in working capital, aiding cash flow performance.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating Income Decline
- Operating income decreased by 4.3% to $1.145 billion from $1.196 billion year-over-year.
- High Interest Expense
- Interest expense rose to $236 million from $229 million, exerting pressure on net income.
- Challenging Outlook for Sales
- Management anticipates organic net sales to decline by 1.5% to 3.5% for FY2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.67
- Segment
- North America
- Segment
- International Developed Markets
- Segment
- Emerging Markets
What they said about what is next.
The company maintained its guidance for adjusted EPS in the range of $1.98 to $2.10 for FY2026.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 12, 2026
- Kraft Heinz reported 2025 net sales of approximately $25 billion and continues to manage the business through eight product platforms (Taste Elevation, Easy Ready Meals, etc.). The Board announced on February 11, 2026…
- 10-Q · April 29, 2025
- Kraft Heinz reported Q1 2025 net sales of $5,999 million, down $412 million (-6.4%) versus Q1 2024, with operating income of $1,196 million and diluted EPS of $0.59. Liquidity strengthened as cash, cash equivalents, and…
- 10-K · February 13, 2025
- Kraft Heinz reported 2024 net sales of approximately $26 billion and reorganized its portfolio into eight consumer-driven product platforms to drive future growth. The company highlights strengthening employee…
- 10-Q · August 2, 2023
- Kraft Heinz reported Q2 net sales of $6,721 million (up $167 million or ~2.5% vs. $6,554 million a year ago) and diluted EPS of $0.81 (vs. $0.21). Gross profit increased to $2,261 million and operating income rose to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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