Switzerland's Nestlé maintains 2026 organic growth guidance at 3% to 4%

By Reuters News


Overview

  • Switzerland-based food and beverage giant's Q3 organic growth 4.0%

  • Nestlé's Russian operations no longer consolidated after external administration in September


Outlook

  • Nestlé maintains 2026 organic growth guidance at 3% to 4%

  • Company expects 2026 underlying trading operating profit margin to improve versus 2025

  • Nestlé forecasts 2026 free cash flow above CHF 9 bln


Result Drivers

  • EMERGING MARKETS - Co said strong growth in emerging markets drove Q3 organic growth, with OG of 6.8% and RIG of 4.3%

  • PETCARE MOMENTUM - Co said Petcare sales grew 5.3% in Q3, led by strong cat product performance and matching sell-in to sell-out

  • WATERS & PREMIUM BEVERAGES - Co said double-digit organic growth in Waters & Premium Beverages was driven by strong demand for international brands and favorable weather in Europe


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Organic Growth

4%

Q3 Sales

CHF 22,756 million


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy."

  • Wall Street's median 12-month price target for Nestle SA is CHF89.00, about 6.6% above its October 21 closing price of CHF83.47

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 21 - Nestle, Zydus, Abbott face India scrutiny over claims on children's products

  • Oct 19 - Unilever to sell Welly bandage brand to Forward Consumer Partners

  • Oct 19 - Chocolate maker Lindt ousts CEO after poor European results, two outlook cuts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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