Kraft Heinz reports Q2 financial results and increases brand investments
The Kraft Heinz Company reported a decrease in net sales for the second quarter of 2026, even as leadership highlighted strong performance across key business segments.
Net sales for the global packaged food manufacturer fell 1.4% to $6.26 billion compared to the same period last year. Organic net sales dropped 1.3% over the same period.
Prices increased by 1.3 percentage points across the business to offset higher input costs, particularly in coffee and ready-to-drink beverages. However, overall volume and mix fell 2.6 percentage points, led by lower sales in meats and spoonable products. A shift in the timing of Easter caused a 100 basis point drop in sales volume, though an inventory pull forward provided an 80 basis point boost.
Regional sales and operating results
North American net sales dropped 2.7% during the quarter to $4.63 billion. Sales in international developed markets fell 3.5% to $865 million. Emerging markets provided a bright spot for the company, with net sales rising 10.4% to $771 million.
Kraft Heinz reported an operating loss of $6.43 billion for the quarter. Non-cash impairment losses of $7.35 billion drove the loss, though this marked an improvement from the $7.97 billion in impairment losses recorded in the second quarter of 2025. Adjusted operating income fell 18.4% to $1.04 billion due to higher advertising spend, lower sales volume, manufacturing inflation, logistics costs, and variable compensation expenses.
Cash Flow and Future Outlook
Year-to-date net cash provided by operating activities reached $2.09 billion, an 8.2% increase from the prior year. Free cash flow rose 10.3% to $1.66 billion, supported by working capital improvements in accounts payable.
"We delivered another solid quarter, with results that exceeded our expectations across U.S. retail, global away from home, and emerging markets," said Steve Cahillane, chief executive officer of Kraft Heinz. "Our brands are resonating with consumers, and our share performance is improving. The progress we are seeing gives us the confidence to raise our organic net sales outlook for the year."
Cahillane added that the company will increase its incremental investments by $100 million in 2026, bringing the total to approximately $700 million.
For the full year 2026, Kraft Heinz expects organic net sales to range from down 0.5% to down 2.0%, which includes an approximate 100 basis point headwind from SNAP funding changes. Adjusted earnings per share are forecasted to land between $2.03 and $2.09.
