Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Kraft Heinz delivered a mixed Q1 2026 with gross profit rising 7.5% YoY to $2.22B and net income up 12.1% to $798M, but operating income fell 4.3% to $1.15B as SG&A expenses surged 23.7%, while total assets declined 9.1% reflecting significant balance sheet contraction.
Cost of Revenue
$3.83B
-2.72% YoY
EPS (Diluted)
$0.67
+13.56% YoY
Operating Income
$1.15B
-4.26% YoY
Source: SEC XBRL
Kraft Heinz (KHC) reported Q1 FY2026 revenue of $3.83B, down 2.7% year over year. Operating cash flow was $1.01B, up 39.7% year over year. KHC's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.56 | 0.53 | Beat +4.8% |
| Mar 2026This filing | 0.58 | 0.51 | Beat +14.2% |
| Dec 2025 | 0.67 | 0.62 | Beat +8.6% |
| Sep 2025 | 0.61 | 0.58 | Beat +4.4% |
Adjusted (non-GAAP) EPS of $0.58 versus the $0.51 analyst consensus — a +14.2% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.67.
Compiled by AI from this SEC filing
Gross profit improved by $155M (+7.5% YoY) to $2.22B in Q1 2026, driven by a $107M reduction in cost of revenue to $3.83B, suggesting improved input cost management or favorable product mix shifts.
Source: 10-Q Income Statement
SG&A expenses jumped 23.7% YoY to $1.07B from $868M, a $206M increase that more than offset gross profit gains and caused operating income to decline 4.3% to $1.15B despite top-line cost improvements.
Source: 10-Q Income Statement
Operating cash flow surged 39.7% YoY to $1.01B, and investing cash flow turned positive at $185M (vs. -$878M prior year), significantly boosting cash and equivalents by 56.6% to $3.31B.
Source: 10-Q Cash Flow Statement
Total assets fell 9.1% YoY to $82.05B while stockholders' equity declined 15.2% to $41.92B, suggesting asset divestitures or impairments; current liabilities rose 23.5% to $8.94B, increasing near-term obligations.
Source: 10-Q Balance Sheet
Net income rose 12.1% to $798M and diluted EPS grew 13.6% to $0.67, outpacing operating income trends, likely aided by below-the-line items such as reduced interest expense or favorable tax outcomes.
Source: 10-Q Income Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
SG&A expenses rose 23.7% YoY to $1.07B in a single quarter, representing a significant cost escalation that directly compressed operating margins. If this trend continues, it could erode profitability even if gross margins remain stable or improve.
Source: 10-Q Income Statement
Total assets declined by over $8.2B (-9.1% YoY) to $82.05B, and stockholders' equity fell $7.5B (-15.2%) to $41.92B. This contraction may reflect asset write-downs, divestitures, or goodwill impairments that could signal ongoing portfolio restructuring risks.
Source: 10-Q Balance Sheet
Current liabilities surged 23.5% YoY to $8.94B while current assets grew only 12.9% to $10.68B, resulting in a current ratio of just 1.20. This narrowing liquidity buffer leaves limited room to absorb unexpected cash demands.
Source: 10-Q Balance Sheet
Share repurchases fell 89.8% YoY to just $23M from $225M, suggesting the company is conserving capital or prioritizing debt management over shareholder returns. This may signal management caution about future cash flow visibility.
Source: 10-Q Cash Flow Statement
Operating income declined 4.3% while net income rose 12.1%, indicating that bottom-line improvement is driven by non-operating factors rather than core business performance. Reliance on below-the-line items for earnings growth is generally less sustainable.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 3.83 $B | 3.94 $B | -2.72% |
Gross Profit $B | 2.22 $B | 2.06 $B | +7.51% |
Operating Income $B | 1.15 $B | 1.20 $B | -4.26% |
Net Income $M | 798.00 $M | 712.00 $M | +12.08% |
EPS (Basic) $ | 0.67 $ | 0.60 $ | +11.67% |
EPS (Diluted) $ | 0.67 $ | 0.59 $ | +13.56% |
SG&A Expense $B | 1.07 $B | 0.87 $B | +23.73% |
Answers draw on this SEC filing and the data on this page
Kraft Heinz reported a GAAP net loss of $5.5 billion in Q2 FY2026 due to $7.4 billion in non-cash impairment charges, while adjusted EPS fell 18.8% to $0.56 on organic sales decline and cost pressures.
KHC reported a deeply negative FY2025, swinging to a net loss of $5.85B and operating loss of $4.67B, driven by a massive $5.69B surge in SG&A expenses that overwhelmed a modest cost-of-revenue improvement.
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