Newell Brands Delivers Strong Q1 2026 Results with Focus on Innovation and Advertising
Newell Brands kicked off the year with a strong first quarter, exceeding expectations across all key financial metrics. The company's focus on innovation and increased advertising support has driven better-than-expected consumer demand for its products, resulting in core sales growth above plan.
According to Chris Peterson, President and CEO of Newell Brands, "we had a strong start to the year with Q1 results ahead of expectations across all key financial metrics." The Learning and Development segment was particularly notable, returning to core sales growth led by Baby, which grew 4.9% in the first quarter.
The company's focus on innovation has been instrumental in driving consumer demand, with six of its top 10 brands gaining market share in the first quarter. Additionally, for the first time in over four years, six of its top 10 brands delivered year-over-year point-of-sale growth, and seven top 10 brands improved their sequential trajectory versus the fourth quarter.
Newell Brands plans to launch 25 Tier 1 and Tier 2 innovations this year, up from 18 last year. These innovations span every one of its businesses and are designed to improve value, expand usage occasions, and give retailers more reasons to support the company's brands.
The company's efforts in improving operational discipline and spend management have also paid off, resulting in a net pricing benefit related to customer programs due to better claims experience and improved deduction management. This contributed to top-line over-delivery and drove normalized operating margin above the company's outlook, even after increasing advertising investment compared to prior year.
Normalized earnings per share came in $0.03 better than the upper end of Newell Brands' guidance range due to higher-than-expected core sales, better-than-expected normalized operating margin, and a lower-than-expected first-quarter effective tax rate.
The Home and Commercial segment also exceeded plan and improved sequentially, while the Outdoor and Recreation segment performed well in the quarter. Overall, Newell Brands' strong Q1 results demonstrate its ability to execute on its turnaround strategy and deliver on its promises to consumers, retailers, and investors."
