Newell Brands (NASDAQ:NWL) Releases Quarterly Earnings Results, Beats Estimates By $0.22 EPS

Newell Brands (NASDAQ:NWL) issued its quarterly earnings results on Friday. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.20 by $0.22, FiscalAI reports. The business had revenue of $1.99 billion for the quarter, compared to analysts’ expectations of $1.98 billion. Newell Brands had a negative net margin of 3.91% and a positive return on equity of 8.89%. The company’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.24 earnings per share. 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 Trading Up 8.9%

Shares of NASDAQ:NWL opened at $5.60 on Friday. The company has a quick ratio of 0.51, a current ratio of 1.04 and a debt-to-equity ratio of 1.94. The company’s 50-day moving average price is $4.88 and its 200 day moving average price is $4.40. The company has a market cap of $2.38 billion, a PE ratio of -10.57, a P/E/G ratio of 6.86 and a beta of 0.87. Newell Brands has a fifty-two week low of $3.07 and a fifty-two week high of $7.13.

Newell Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Friday, May 29th were issued a $0.07 dividend. 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 (DPR) is -41.79%.

Insiders Place Their Bets

In other Newell Brands news, insider Bradford R. Turner sold 100,000 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $3.60, for a total value of $360,000.00. Following the sale, the insider owned 464,449 shares in the company, valued at approximately $1,672,016.40. This trade represents a 17.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Melanie Arlene Huet sold 91,000 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $4.50, for a total value of $409,500.00. Following the transaction, the insider owned 867 shares of the company’s stock, valued at approximately $3,901.50. This represents a 99.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 202,750 shares of company stock worth $812,396. Insiders own 1.64% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its holdings in shares of Newell Brands by 197.8% during the fourth quarter. AQR Capital Management LLC now owns 21,166,902 shares of the company’s stock valued at $78,741,000 after purchasing an additional 14,059,209 shares during the period. State Street Corp raised its stake in shares of Newell Brands by 2.1% during the fourth quarter. State Street Corp now owns 14,615,775 shares of the company’s stock valued at $54,371,000 after purchasing an additional 295,001 shares in the last quarter. Rubric Capital Management LP acquired a new stake in Newell Brands in the third quarter worth about $68,120,000. Geode Capital Management LLC lifted its holdings in Newell Brands by 13.2% in the fourth quarter. Geode Capital Management LLC now owns 7,442,619 shares of the company’s stock worth $27,693,000 after purchasing an additional 866,984 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in Newell Brands by 18.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 5,498,779 shares of the company’s stock valued at $20,455,000 after buying an additional 846,493 shares in the last quarter. Institutional investors and hedge funds own 92.50% of the company’s stock.

Key Newell Brands News

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

• Positive Sentiment: Q2 earnings beat expectations: Newell reported adjusted earnings of $0.42 per share, well above the $0.19 analyst consensus and up from $0.24 a year earlier. Revenue rose 3% year over year to $1.99 billion, slightly exceeding estimates. Newell Brands Q2 earnings and revenues top estimates
• Positive Sentiment: Profitability benefited from multiple factors: Sales growth, margin expansion and recoveries related to tariffs supported the earnings outperformance. Management said both net sales and core sales returned to year-over-year growth, aided by product innovation and increased advertising and promotional support. Newell Brands Q2 earnings beat on sales growth and tariff recoveries
• Positive Sentiment: Full-year outlook was raised: Newell increased its 2026 normalized EPS forecast to $0.73-$0.77 from $0.56-$0.60 previously, above the roughly $0.57 analyst consensus. Full-year revenue guidance remained near $7.3 billion. Newell Brands lifts full-year profit view
• Neutral Sentiment: Analyst stance remains cautious: Newell retains a consensus “Hold” rating, suggesting investors may want additional evidence that the improved results can be sustained.
• Neutral Sentiment: Unusually high options activity indicates elevated investor interest and potential volatility following the earnings release, but does not establish a clear directional signal.
• Negative Sentiment: Q3 guidance was mixed: The company forecast adjusted EPS of $0.18-$0.20, with the midpoint roughly in line with consensus but the range extending below estimates. Revenue guidance of $1.8-$1.9 billion also suggests limited near-term growth momentum.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. UBS Group upped their price objective on Newell Brands from $4.25 to $4.75 and gave the company a “neutral” rating in a research note on Thursday, July 16th. Citigroup reiterated a “neutral” rating on shares of Newell Brands in a research report on Tuesday, July 14th. Wall Street Zen upgraded Newell Brands from a “hold” rating to a “buy” rating in a report on Saturday. Morgan Stanley lowered Newell Brands from an “equal weight” rating to an “underweight” rating and dropped their price target for the company from $4.00 to $3.50 in a research report on Wednesday, May 20th. Finally, Barclays raised their price objective on Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Newell Brands presently has a consensus rating of “Hold” and a consensus target price of $5.38.

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.