Newell Brands lifts 2026 sales outlook but cuts its cash flow guidance to about $150m

Third-quarter revenue of $1.87B missed the $1.88B expected, and profit guidance held at the same midpoint, leaving the fourth quarter to show whether faster sales reach earnings.

Newell Brands raised its sales forecast for the year but left its profit forecast where it was and cut its cash flow target, which makes the quarter a weaker one than the sales headline suggests.

The company now expects 2026 net sales growth of 2% to 3%, up from 1% to 2%, and core sales growth of 1% to 2%, up from flat to 1%. Chris Peterson, the chief executive, credited broad-based growth across businesses and brands, and said Newell now expects growth in both the fourth quarter and the full year. Third-quarter revenue of $1.87B was slightly short of the $1.88B analysts expected, and earnings of $0.20 a share matched forecasts.

The profit outlook did not follow sales higher. Normalized earnings guidance of $0.74 to $0.76 a share has the same midpoint as the previous range of $0.73 to $0.77, only narrower, and the operating margin outlook of 10.0% to 10.4% is unchanged. Faster sales are therefore expected to bring no extra profit, and the raised outlook only holds if margins stay inside that band.

The weaker point is cash. Newell cut its operating cash flow guidance to about $150m, citing pension plan termination accounting and lower factoring proceeds, which are cash received by selling customer invoices early. Neither is a sign of better trading, but a company turning sales into cash only slowly gives investors less to lean on.

The fourth quarter is the test. Newell guides to net and core sales growth of 1% to 3%, a normalized operating margin of 8.4% to 9.0% and earnings of $0.17 to $0.19 a share. If sales land in that range and earnings do not, the higher outlook will have bought little.