AI Takeaway
IP (International Paper) returned to profitability in Q1 FY2026, posting $60M net income versus a $105M loss a year ago, driven by a 13.4% revenue surge to $5.97B and a dramatic swing to $611M in operating cash flow.
Revenue
$5.97B
++13.43% YoY
EPS (Basic)
$0.11
++145.83% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 13.4% year-over-year to $5.97B in Q1 FY2026, up from $5.26B in the prior-year period, reflecting meaningful top-line momentum likely driven by volume gains and/or pricing improvements following the DS Smith acquisition integration.
Source: Source: 10-Q Financial Data (Income Statement)
Net income swung to $60M from a loss of $105M in Q1 FY2025, a 157.1% improvement, indicating that cost management and revenue growth are beginning to translate into bottom-line recovery.
Source: Source: 10-Q Financial Data (Income Statement)
Operating cash flow surged 312.2% to $611M from negative $288M in the prior year, signaling a significant improvement in the company's ability to generate cash from its core operations.
Source: Source: 10-Q Financial Data (Cash Flow Statement)
2 more insights available
Upgrade to unlockStockholders' equity dropped 18.2% year-over-year to $14.81B, while total assets fell 11.5% to $36.43B. This contraction could reflect integration costs, impairments, or restructuring charges related to the DS Smith acquisition, potentially pressuring the company's financial flexibility.
Source: Source: 10-Q Financial Data (Balance Sheet)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.15 versus the $0.15 analyst consensus — a +3.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.97B | $5.26B | +13.43% |
Cost of Revenue | $4.24B | $3.81B | +11.54% |
Net Income | $60M | $-105M | +157.14% |
EPS (Basic) | $0.11 | $-0.24 | +145.83% |
EPS (Diluted) | $0.11 | $-0.24 | +145.83% |
SG&A Expense | $510M | $487M | +4.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $36.43B | $41.17B | -11.50% |
Current Assets | $8.58B | $9.29B | -7.62% |
Current Liabilities | $7.07B | $6.99B | +1.22% |
Stockholders' Equity | $14.81B | $18.09B | -18.15% |
Cash & Equivalents | $1.24B | $1.16B | +6.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $611M | $-288M | +312.15% |
Investing Cash Flow | $565M | $237M | +138.40% |
Financing Cash Flow | $-1.02B | $21M | -4952.38% |
Dividends Paid | $245M | $244M | +0.41% |
Share Buybacks | $30M | $62M | -51.61% |
D&A | $489M | $520M | -5.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 1.0% | — | — |
ROE | 0.4% | — | — |
ROA | 0.2% | — | — |
Current Ratio | $1.213 | — | — |
Other companies in Paper & Plastic Packaging Products & Materials
IP reported net income of $60M and EPS of $0.11 in Q1 FY2026, a significant turnaround from a net loss of $105M and EPS of -$0.24 in Q1 FY2025. Whether this beat analyst consensus estimates would require comparison to Wall Street forecasts, which are not included in the filing data.
IP's revenue grew 13.4% year-over-year to $5.97B in Q1 FY2026, up from $5.26B in the prior-year period. This strong top-line growth likely reflects contributions from the DS Smith acquisition and improved market conditions in the packaging sector.
The key takeaways are IP's return to profitability with $60M net income, a dramatic operating cash flow turnaround to $611M from negative $288M, and 13.4% revenue growth to $5.97B. However, the net margin remains very thin at ~1% and stockholders' equity declined 18.2%, signaling ongoing balance sheet pressures.
Based on the financial data, key risks include IP's razor-thin net margin of ~1%, a significant 18.2% decline in stockholders' equity to $14.81B, and a large financing cash outflow of $1.02B that limits financial flexibility. The company's high cost structure, with cost of revenue at ~71% of sales, also leaves limited buffer against input cost inflation.
IP's financial health shows improvement in profitability and cash generation, with a current ratio of 1.21 and operating cash flow of $611M, but the balance sheet has contracted with total assets down 11.5% to $36.43B and equity down 18.2% to $14.81B. The company's net margin of ~1% remains very thin, making it sensitive to any adverse changes in costs or demand.