Gross Profit Expansion
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.
Kraft Heinz Co is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
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.
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.
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.
Cost of Revenue
$3.83B
-2.72% YoY
EPS (Basic)
$0.67
++11.67% YoY
Operating Income
$1.15B
-4.26% YoY
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