Newell Brands Beats Q1 Forecasts, Signals Turnaround with Rosy Outlook

ATLANTA, GA – May 01, 2026 – Newell Brands, the global consumer goods company behind household names like Rubbermaid, Sharpie, and Graco, today delivered a dose of optimism to the market, announcing first-quarter financial results that surpassed expectations and raising its full-year guidance. Despite a persistent 'challenging macroeconomic backdrop,' the company signaled a potential turning point, projecting a return to top-line growth as early as the upcoming second quarter.

For the first quarter of 2026, Newell reported net sales of $1.5 billion, a modest 1.1% decline from the prior year. However, this figure, along with a core sales decline of 3.5%, came in ahead of the company's internal plans. The performance was strong enough for management to express confidence in its recovery strategy, which has focused on innovation, brand support, and aggressive productivity measures.

"First quarter results came in ahead of plan across all key metrics with all three segments delivering core sales above our expectations," said Chris Peterson, Newell Brands President and Chief Executive Officer, in a statement. Highlighting the positive momentum, he added, "We continue to believe that our strategy is working and, importantly, we now expect to return to top-line growth in the second quarter."

A Turnaround in Motion?

The upbeat forecast marks a significant shift in tone for a company that has navigated several years of declining sales. Full-year net sales fell 5.0% in 2025 and 6.8% in 2024, reflecting soft global demand and retailer inventory adjustments. The Q1 2026 results, while still negative on a year-over-year basis, suggest that the strategic initiatives implemented over the past two years are beginning to bear fruit.

While top-line sales have yet to turn positive, the company demonstrated notable progress in profitability. Gross margin improved to 33.1% from 32.1% in the same period last year, and normalized operating margin expanded to 4.8%. This margin improvement is a direct result of a multi-pronged strategy to streamline the business.

Key to this effort have been the company's restructuring programs, including the 2024 'Realignment Plan' and the more recent 'Productivity Plan' from December 2025. These initiatives have focused on reducing organizational complexity, cutting overhead, and optimizing operations. The company anticipates the latest plan will generate over $75 million in savings in 2026 alone. This disciplined cost management, combined with strategic pricing actions to offset inflation, allowed Newell to improve its bottom-line performance even as sales volumes dipped.

"First quarter operating margin expanded year-over-year as productivity and pricing actions more than offset cost inflation and lower volume," noted Mark Erceg, Newell Brands Chief Financial Officer. This ability to protect and even grow margins in a difficult environment has been a consistent theme in recent quarters and is a cornerstone of the company's turnaround narrative.

A Mixed Bag for Consumer Spending

A closer look at Newell's segment performance paints a nuanced picture of the 2026 consumer. The results reveal a clear divergence in spending priorities, offering a window into broader market trends.

The standout performer was the Learning & Development segment, which includes iconic brands like Sharpie, Paper Mate, and Elmer's. This division posted core sales growth of 2.0%, making it the only segment to expand in the quarter. This resilience suggests that spending on education, creativity, and office supplies remains a priority for households and businesses, potentially buoyed by stable back-to-school cycles and hybrid work environments.

In stark contrast, the company's other major segments faced headwinds. The Home & Commercial Solutions segment, which houses brands like Rubbermaid and FoodSaver, saw core sales decline by 6.9%. Similarly, the Outdoor & Recreation segment, home to Coleman and Campingaz, experienced a 5.7% drop in core sales.

These declines may reflect a broader consumer pullback on discretionary durable goods. After a pandemic-fueled boom in home improvement and outdoor activities, consumers now appear to be reallocating their budgets. Higher interest rates impacting the housing market could be dampening demand for home goods, while the outdoor sector may be normalizing after several years of elevated growth. The divergent results underscore the benefit of Newell's diversified portfolio, allowing strength in one area to partially offset weakness in others.

Navigating a Challenging Global Market

Newell's performance is particularly noteworthy given the persistent global economic pressures. Management cited ongoing challenges from soft demand, inflation, and the impact of tariffs. The company's ability to outperform its own expectations suggests its strategies for mitigating these external factors are proving effective.

One of the key drivers of the better-than-expected results was what the company described as "improving point of sale and share trends." This indicates that Newell's products are resonating with consumers at the retail level, likely due to what Peterson called "continued investment in innovation, advertising and promotional support." By focusing on brand strength and product development, the company appears to be capturing market share, a critical achievement in a shrinking or slow-growth market.

Wall Street has taken notice, though a sense of caution remains. The consensus rating among analysts is a 'Hold,' suggesting they see the positive signs but are waiting for the company to deliver consistent top-line growth before fully embracing the turnaround story. The stock surged over 11% in response to the earnings news, reflecting investor enthusiasm for the improved outlook.

A Brighter Outlook Ahead

The most significant news from the announcement was the company's decision to raise its full-year 2026 outlook. Newell now expects net sales to be between flat and up 2%, a notable improvement from the previous guidance of a 1% decline to a 1% increase. The forecast for core sales was also tightened upwards, now projected to be between a 1% decline and 1% growth. Furthermore, the normalized earnings per share (EPS) outlook was raised to a range of $0.56 to $0.60.

The guidance for the second quarter is even more telling, with the company forecasting core sales growth of flat to 2%. If achieved, this would mark the company's first quarter of year-over-year top-line growth in several years, representing a major milestone in its recovery.

For a company that has spent years executing a complex and often painful restructuring, the shift to a forward-looking growth narrative marks a pivotal moment. All eyes will now be on the coming quarters to see if this newfound optimism translates into sustained financial performance and a definitive end to its turnaround phase.