GET DAILY SIGNALSNewell Brands (NWL) Delivers +3.7% Net Sales Growth in Q3 2026 Turnaround Update
Key Takeaways
- Newell Brands reported third-quarter 2026 net sales of $1.9 billion, up 3.7% year over year, with core sales rising 3.3% for a second consecutive quarter of growth.
- Normalized diluted earnings per share (EPS) came in at $0.20, matching analyst expectations and reaching the high end of the company's guidance range.
- Normalized gross margin expanded 70 basis points to 35.2%, while normalized operating margin improved to 9.8% from 8.9% a year earlier.
- On a generally accepted accounting principles (GAAP) basis, the company swung to a net loss of $81 million, or $0.19 per share, driven by a $101 million non-cash impairment charge.
- Management raised its full-year 2026 net sales outlook to 2%–3% growth while maintaining the midpoint of its normalized operating margin and EPS guidance.
- Get more details on this ticker's Major News, Today's Price Move, Price Targets, and Forecast on additional pages, and explore Trending AI Robots for AI-driven trading ideas.
Why This Quarter Matters
Newell Brands, the consumer goods company behind Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle, is several years into a turnaround aimed at restoring consistent sales growth after a prolonged stretch of declines. The third-quarter 2026 report marks an important checkpoint: it is the second straight quarter of year-over-year growth, suggesting the company's investments in innovation, brand building, and distribution are translating into broad-based market share gains. For investors, the quarter also highlights a central tension — revenue is recovering, but persistent input-cost inflation and a heavy debt load continue to pressure reported profitability and cash flow. How well management balances growth against these cost headwinds will shape sentiment around the stock in the quarters ahead. I also checked this using Tickeron’s AI Screener to see how NWL compares to peers in the sector.
Breaking Down the Reported Results
Newell Brands posted third-quarter 2026 net sales of approximately $1.9 billion, an increase of 3.7% from $1.806 billion in the prior-year period. Core sales — a measure that excludes foreign exchange, acquisitions, and divestitures — grew 3.3%, exceeding the company's guidance range of 2% to 3%. Normalized diluted EPS was $0.20, up from $0.17 a year earlier and in line with consensus expectations.
Profitability improved on a normalized basis. Normalized gross margin rose to 35.2% from 34.5%, and normalized operating margin expanded to 9.8% from 8.9%. Normalized EBITDA climbed to $248 million from $225 million. However, reported results reflected a $101 million non-cash impairment of an indefinite-lived tradename, pushing the company to a GAAP net loss of $81 million, or $0.19 per diluted share, versus net income of $21 million a year ago.
Segment performance was mixed. Home & Commercial Solutions core sales rose 6.0%, with the Kitchen, Home Fragrance, and Commercial businesses all growing together for the first time in five years. Learning & Development core sales increased 2.3%, led by a mid-single-digit gain in Writing. Outdoor & Recreation core sales declined 6.4%, the one notable drag. From what I see, the breadth of growth in the first two segments is encouraging.
Market Reaction and Investor Sentiment
Newell Brands' third-quarter results offered a mixed but generally constructive signal to investors. The top-line beat and improved guidance supported the view that the company's turnaround is gaining traction, particularly given the breadth of growth across businesses and geographies. At the same time, the swing to a GAAP loss — driven by the non-cash impairment — and a revised full-year operating cash flow outlook of roughly $150 million, down from around $400 million, tempered some of the enthusiasm. Management attributed the cash-flow revision largely to one-time, non-operational items including pension-termination accounting effects and lower receivables factoring. Sentiment heading into the report had been supported by the stock's strong run, and the in-line EPS print against a backdrop of rising inflation reinforced that the company is still navigating meaningful cost pressures even as demand improves.
Forward Outlook and Key Factors to Monitor
Management raised its full-year 2026 net sales outlook to 2%–3% growth, up from 1%–2%, while maintaining the midpoint of normalized operating margin (10.0%–10.4%) and narrowing normalized EPS guidance to $0.74–$0.76. For the fourth quarter, the company expects net and core sales growth of 1%–3% and normalized EPS of $0.17–$0.19.
Inflation remains the dominant watch item. Newell Brands raised its 2026 input-cost inflation estimate to $220 million, up from $100 million at the start of the year, and signaled roughly $150 million of additional inflation in 2027. Management plans modest, selective pricing actions in early 2027 to help offset cumulative cost pressures, which could introduce elasticity risk if consumers push back.
Investors should also monitor deleveraging progress, given the company's substantial debt load, and whether Outdoor & Recreation can return to growth after a weak quarter. Finally, potential tariff relief for baby gear under the U.S.–China Section 301 framework remains an unresolved, but potentially meaningful, catalyst for the Baby business. I’m watching this closely as cost pressures evolve.
Using AI Tools in My Research Process
I often turn to Tickeron’s AI Screener when evaluating names like NWL after earnings. The tool lets me quickly filter for technical patterns, fundamentals, and industry trends to compare performance and spot related opportunities across the market. It has become a regular part of how I refine watchlists and confirm broader context around individual results.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NWL sees MACD Histogram crosses below signal line
NWL saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 26, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In 36 of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 82%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NWL as a result. In 62 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NWL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 73%.
The Aroon Indicator for NWL entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where NWL advanced for three days, in 211 of 283 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
NWL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 14 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.900) is normal, around the industry mean (21.037). P/E Ratio (-9.774) is within average values for comparable stocks, (17.443). Projected Growth (PEG Ratio) (0.100) is also within normal values, averaging (1.518). Dividend Yield (0.054) settles around the average of (0.034) among similar stocks. P/S Ratio (0.332) is also within normal values, averaging (1.931).
The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. NWL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 93 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NWL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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General Information
an industrial conglomerate which manufactures and markets consumer and commercial products, including office products, tools, hardware, home and baby products
Industry HouseholdPersonalCare
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