KHC · 10-Q · 2026Q2 · Full report
Operating Income and Margins
Kraft Heinz Co · 2026-08-05 · Importance 54 · Surprise 40 · Contradicted
Second-quarter operating income improved to a loss of $6.431 billion from a loss of $7.974 billion because non-cash impairment losses were $1.9 billion lower year over year. Excluding the impairment change, operating income declined by $371 million due to commodity-hedge mark-to-market losses, higher advertising, unfavorable volume/mix, manufacturing and logistics inflation, and higher variable compensation and related taxes. Adjusted operating income decreased 18.4% to $1.041 billion in the quarter and 15.2% to $2.099 billion for six months because advertising, inflation, volume/mix, and compensation costs exceeded pricing and procurement efficiencies. Segment adjusted operating income declined 15.8% in North America to approximately $1.0 billion and 9.1% in International Developed Markets to $124 million, while Emerging Markets increased 6.7% to $107 million.
Key facts
- Operating income/(loss) for the six months ended June 27, 2026 was $(5,286) million compared to $(6,778) million for the six months ended June 28, 2025, a 22.0% change. source
- Operating income/(loss) for the three months ended June 27, 2026 was $(6,431) million compared to $(7,974) million for the three months ended June 28, 2025, a 19.4% change. source
- Income/(loss) before income taxes for the three months ended June 27, 2026: $(6,376) million and for the three months ended June 28, 2025: $(8,167) million source
- Operating income/(loss) for the six months ended June 27, 2026: $(5,286) million and for the six months ended June 28, 2025: $(6,778) million source
- Income/(loss) before income taxes for the six months ended June 27, 2026: $(5,366) million and for the six months ended June 28, 2025: $(7,149) million source
- For the three months ended June 27, 2026 operating income/(loss) was ($6,431) million, impairment losses were $7,352 million, unrealized gains on commodity hedges were ($16) million, and Adjusted Operating Income was $1,041 million. source
- Operating income/(loss) for the three months ended June 27, 2026: $(6,431) million and for the three months ended June 28, 2025: $(7,974) million source
- Operating income/(loss) for the three months ended June 27, 2026: $(6,431) million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -84.4% | For the six months ended June 27, 2026 operating income/(loss) was ($5,286) million and Adjusted Operating Income was $2,099 million. |
| net_income | positive | realized | +28.6% | Income/(loss) before income taxes for the three months ended June 27, 2026: $(6,376) million and for the three months ended June 28, 2025:… |
| operating_income | positive | realized | +24.6% | Operating income/(loss) for the three months ended June 27, 2026 was $(6,431) million compared to $(7,974) million for the three months… |
| operating_income | positive | realized | +23.8% | Operating income/(loss) for the six months ended June 27, 2026 was $(5,286) million compared to $(6,778) million for the six months ended… |