Newell Brands (NASDAQ:NWL) Issues Quarterly Earnings Results

Key Points

• Newell Brands beat quarterly expectations: Adjusted EPS was $0.42 versus the $0.19 consensus, while revenue rose 3% year over year to $1.99 billion, narrowly exceeding estimates.
• The company raised its 2026 outlook to normalized EPS of $0.73–$0.77 and operating cash flow of approximately $400 million, citing broad-based sales growth, improved market share, and stronger retail execution.
• Cost pressures remain a risk: Management expects approximately $200 million of inflation and $127 million of net tariff-related costs in 2026, while third-quarter EPS guidance of $0.18–$0.20 is slightly below analyst expectations.

Newell Brands (NASDAQ:NWL - Get Free Report) released its earnings results on Friday. The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.19 by $0.23, FiscalAI reports. The firm had revenue of $1.99 billion during the quarter, compared to the consensus estimate of $1.98 billion. Newell Brands had a positive return on equity of 8.89% and a negative net margin of 3.91%.The company's revenue was up 3.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.24 EPS. Newell Brands updated its Q3 2026 guidance to 0.180-0.200 EPS and its FY 2026 guidance to 0.730-0.770 EPS.

Here are the key takeaways from Newell Brands' conference call:

• Newell returned to growth for the first time in more than four years, with Q2 net sales up 3% and core sales up 2.3%, exceeding guidance. Five of six business units grew, led by Learning & Development and Outdoor & Recreation.
• U.S. distribution increased at a mid-single-digit rate, while consumer point-of-sale trends and market share improved for brands including Graco, Sharpie, Expo, and Coleman. Management said innovation, higher advertising investment, and stronger retail execution are driving the gains.
• The company raised its full-year outlook to 1%–2% net sales growth, flat to 1% core sales growth, 10%–10.4% normalized operating margin, and $0.73–$0.77 normalized EPS. Operating cash flow guidance was also increased to approximately $400 million, with year-end leverage expected below 4.5 times.
• Inflation expectations doubled to approximately $200 million for 2026, while net tariff-related P&L costs are projected at $127 million. Management said productivity savings and selective pricing are offsetting the pressure, but broad-based pricing actions may be needed if costs worsen.
• Q2 profitability benefited materially from nearly $100 million of recoveries related to tariffs expensed in 2025, plus $26 million tied to first-quarter 2026 tariffs. Excluding these recoveries, management said results still exceeded guidance, but the prior-year recovery is not expected to recur in 2027.

Newell Brands Stock Up 8.9%

Shares of NWL traded up $0.46 during trading hours on Friday, reaching $5.60. The stock had a trading volume of 39,608,071 shares, compared to its average volume of 8,049,067. Newell Brands has a 12 month low of $3.07 and a 12 month high of $7.13. The firm has a 50-day simple moving average of $4.84 and a 200 day simple moving average of $4.39. The company has a current ratio of 1.04, a quick ratio of 0.51 and a debt-to-equity ratio of 1.94. The company has a market capitalization of $2.38 billion, a price-to-earnings ratio of -8.36, a P/E/G ratio of 6.35 and a beta of 0.87.

Newell Brands Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date of this dividend was Friday, May 29th. Newell Brands's dividend payout ratio is presently -41.79%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Barclays upped their price objective on shares of Newell Brands from $5.00 to $7.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. raised their target price on shares of Newell Brands from $5.00 to $7.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Royal Bank Of Canada set a $4.00 target price on shares of Newell Brands in a research report on Thursday, April 9th. UBS Group boosted their price objective on shares of Newell Brands from $4.25 to $4.75 and gave the company a "neutral" rating in a research report on Thursday, July 16th. Finally, Citigroup restated a "neutral" rating on shares of Newell Brands in a research note on Tuesday, July 14th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $5.38.

Insider Activity at Newell Brands

In other Newell Brands news, insider Melanie Arlene Huet sold 91,000 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $4.50, for a total transaction of $409,500.00. Following the completion of the sale, the insider owned 867 shares in the company, valued at approximately $3,901.50. The trade was a 99.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Kristine Kay Malkoski sold 10,850 shares of the firm's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $3.65, for a total transaction of $39,602.50. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 202,750 shares of company stock valued at $812,396. 1.64% of the stock is owned by company insiders.

Institutional Investors Weigh In On Newell Brands

A number of institutional investors and hedge funds have recently made changes to their positions in NWL. Hsbc Holdings PLC raised its stake in shares of Newell Brands by 41.5% in the fourth quarter. Hsbc Holdings PLC now owns 61,033 shares of the company's stock worth $227,000 after purchasing an additional 17,891 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Newell Brands by 93.2% during the fourth quarter. Corient Private Wealth LLC now owns 28,859 shares of the company's stock valued at $108,000 after buying an additional 13,920 shares during the last quarter. Compound Planning Inc. purchased a new position in shares of Newell Brands during the fourth quarter valued at approximately $115,000. Invesco Ltd. grew its holdings in Newell Brands by 56.1% during the fourth quarter. Invesco Ltd. now owns 4,273,278 shares of the company's stock worth $15,897,000 after buying an additional 1,534,875 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in Newell Brands by 194.5% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 166,669 shares of the company's stock worth $620,000 after acquiring an additional 110,084 shares during the last quarter. Institutional investors and hedge funds own 92.50% of the company's stock.

Trending Headlines about Newell Brands

Here are the key news stories impacting Newell Brands this week:

• Positive Sentiment: Q2 earnings and sales exceeded expectations. Newell reported adjusted earnings of $0.42 per share, well above the $0.19 consensus estimate and up from $0.24 a year earlier. Revenue rose 3% year over year to $1.99 billion, narrowly topping the $1.98 billion estimate. Newell Brands Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management highlighted a turnaround milestone. Newell said it returned to year-over-year growth in both net sales and core sales, with improvement described as broad-based across its portfolio. The company attributed the progress to product innovation and increased advertising and promotional support. Newell Brands Announces Second Quarter 2026 Results
• Positive Sentiment: Full-year profit guidance was raised substantially. Newell now expects 2026 normalized EPS of $0.73-$0.77, up from its previous $0.56-$0.60 range and above the roughly $0.57 analyst consensus. The company cited higher sales and a tariff refund as factors supporting the improved outlook. Newell Brands Lifts FY Profit View on Higher Sales, Tariff Refund
• Neutral Sentiment: Analyst sentiment remains cautious. Newell carries a consensus “Hold” rating, indicating that some investors may want additional evidence that the turnaround can be sustained. Newell Brands Given Consensus Hold Rating
• Negative Sentiment: Near-term guidance was slightly below expectations. Third-quarter EPS guidance of $0.18-$0.20 has a midpoint below the $0.20 consensus estimate, although projected revenue of $1.8-$1.9 billion is broadly consistent with forecasts.

About Newell Brands

Newell Brands Inc, trading on NASDAQ under the ticker NWL, is a global consumer goods company known for its diverse portfolio of household, commercial, and specialty products. Formed through the merger of Newell Rubbermaid and Jarden Corporation in 2016, the company traces its roots back to Newell Manufacturing, which was founded in 1903. Headquartered in Atlanta, Georgia, Newell Brands has built a reputation for widely recognized brands spanning multiple consumer categories.

The company's business activities are organized across several segments, including writing and creative expression, home solutions, commercial products, and outdoor recreation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.