Newell Brands (NASDAQ:NWL) Posts Earnings Results, Meets Estimates

Newell Brands (NASDAQ:NWL – Get Free Report) posted its earnings results on Friday. The company reported $0.20 earnings per share for the quarter, hitting the consensus estimate of $0.20, FiscalAI reports. The firm had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.86 billion. Newell Brands had a positive return on equity of 12.31% and a negative net margin of 3.05%. The company’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.17 EPS.

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

  • Sales growth accelerated: Third-quarter net sales rose 3.7% and core sales increased 3.3%, exceeding guidance and marking Newell’s second consecutive quarter of year-over-year core sales growth. Growth was broad-based across brands, businesses, geographies and market share.
  • Margins expanded despite inflation: Normalized gross margin increased 70 basis points to 35.2%, while normalized operating margin rose 90 basis points to 9.8%; normalized EPS increased to $0.20 from $0.17. Productivity savings, higher sales and overhead discipline offset significant cost pressures.
  • Full-year sales outlook was raised: Newell now expects 2026 net sales growth of 2%-3% and core sales growth of 1%-2%, while maintaining its normalized operating margin outlook of 10%-10.4% and tightening EPS guidance to $0.74-$0.76. Management expects positive sales growth again in the fourth quarter.
  • Inflation remains a substantial headwind: The company raised its estimated 2026 input-cost inflation impact to $220 million, up from an initial $100 million estimate, with pressure from transportation, resins, finished goods, labor and other commodities. Newell expects another $150 million of inflation in 2027 and plans modest, selective pricing actions.
  • Cash flow guidance fell due to non-operational items: Full-year operating cash flow is now expected to be approximately $150 million versus a prior $400 million target, primarily because of pension-related accounting treatment and reduced receivables factoring. Management said underlying cash generation remains on track, expects leverage below 4.5 times at year-end and continues to target deleveraging in 2027.

Newell Brands Stock Performance

Newell Brands stock traded up $0.10 during mid-day trading on Friday, reaching $5.18. The company had a trading volume of 13,189,800 shares, compared to its average volume of 7,597,003. The company has a quick ratio of 0.59, a current ratio of 1.11 and a debt-to-equity ratio of 1.85. Newell Brands has a 52 week low of $3.07 and a 52 week high of $7.13. The company has a 50 day moving average of $5.69 and a 200-day moving average of $4.83. The firm has a market cap of $2.21 billion, a price-to-earnings ratio of -9.77, a PEG ratio of 1.29 and a beta of 0.88.

Newell Brands Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 5.4%. The ex-dividend date was Monday, August 31st. Newell Brands’s dividend payout ratio is presently -52.83%.

Trending Headlines about Newell Brands

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

  • Positive Sentiment: Newell reported revenue of $1.87 billion, exceeding the $1.86 billion analyst estimate and increasing 3.7% from the prior-year quarter. Growth was broad-based across the United States and international markets, with four of six business segments and seven of its top 10 brands posting growth. Newell Brands Announces Third Quarter 2026 Results
  • Positive Sentiment: Adjusted earnings were $0.20 per share, matching consensus and improving from $0.17 a year earlier. The company cited productivity gains, cost savings and margin expansion as contributors to the quarter’s performance. NWL Q3 Earnings Meet Estimates, Sales Beat on Broad-Based Growth
  • Positive Sentiment: Management raised its 2026 sales outlook, reinforcing investor expectations that the company’s growth recovery and restructuring efforts are gaining traction. Newell Brands Q3 2026 Earnings Call Transcript
  • Neutral Sentiment: Unusually heavy options activity preceded the results, with traders purchasing 63,054 call options—roughly 40 times typical volume—indicating elevated speculative interest but not guaranteeing sustained gains.
  • Neutral Sentiment: RBC Capital Markets maintained a Hold view, suggesting analysts may remain cautious despite the improved operating trends. Newell Brands Gets a Hold from RBC Capital
  • Negative Sentiment: Newell swung to a reported net loss as higher inflation more than offset sales gains and cost-saving benefits. The company continues to face profitability pressure, with a negative net margin, even though adjusted EPS met expectations. Newell Brands Swings to Loss Despite Higher Sales

Insider Activity

In other Newell Brands news, insider Bradford Turner sold 100,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $6.16, for a total value of $616,000.00. Following the completion of the sale, the insider owned 433,398 shares in the company, valued at approximately $2,669,731.68. This trade represents a 18.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.64% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on NWL. Canaccord Genuity Group lifted their price target on shares of Newell Brands from $9.00 to $11.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Wall Street Zen raised shares of Newell Brands from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 17th. Weiss Ratings lowered shares of Newell Brands from a “sell (d)” rating to a “sell (d-)” rating in a research note on Thursday, October 8th. Barclays lifted their target price on shares of Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lifted their price objective on Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $6.66.

Check Out Our Latest Report on Newell Brands

About Newell Brands

(Get Free Report)

Newell Brands Inc is a global consumer products company that designs, manufactures and markets products used in homes, workplaces and outdoor settings. Its portfolio includes well-known brands such as Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Crock-Pot, Mr. Coffee, FoodSaver, Calphalon, Elmer’s and Sistema.

The company’s products span food and home storage, cookware and small kitchen appliances, writing instruments and other learning supplies, baby and parenting products, outdoor and recreation equipment, home fragrance, and commercial products.

Further Reading

Earnings History for Newell Brands (NASDAQ:NWL)

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