Nestle stock keeps 2026 outlook as Russia reshapes reporting

Nestlé kept its 2026 outlook after reporting stronger operating momentum in the third quarter and changing the accounting perimeter for its Russian business. The company announced the update on Thursday, October 22, while AD HOC NEWS reported on the implications on November 4.

Third-quarter growth gains momentum

Nestlé reported third-quarter sales of CHF 22.756 billion, compared with CHF 21.641 billion a year earlier. Organic growth reached 4.0 percent, comprising real internal growth of 2.8 percent and pricing of 1.1 percent, according to the company's official third-quarter and nine-month sales release.

Growth was broad based. Petcare advanced 5.3 percent organically, supported by 4.3 percent real internal growth, while Food & Snacks grew 5.0 percent. Coffee increased 3.4 percent. Nutrition was the weak spot, with organic growth of 0.3 percent as medical nutrition gains were offset by softer performance elsewhere.

Asia, Oceania and Africa led the regions with 6.4 percent organic growth and 5.0 percent real internal growth. The Americas delivered 3.3 percent organic growth, while Europe grew 1.2 percent as real internal growth recovered from the prior quarter.

Russia changes reported figures

Nestlé said its Russian operations were no longer consolidated from the end of September after being placed under temporary external administration. The group remains the legal owner but no longer controls management of the business. Russia had contributed about 2 percent of group sales and 3 to 4 percent of underlying trading operating profit and free cash flow on an annualized basis.

The change had no impact on third-quarter or nine-month sales and only a limited effect on underlying 2026 results, but it will affect reported sales, underlying trading operating profit and free cash flow from the fourth quarter. Nestlé derecognized net assets of CHF 1.6 billion and recorded a non-cash charge of CHF 1.4 billion for cumulative currency translation adjustments. The company expects group net debt to be CHF 0.9 billion higher at year-end 2026.

Guidance remains unchanged

Management continues to target organic growth of 3 to 4 percent for 2026. The underlying trading operating profit margin is expected to improve from 2025, with second-half margin broadly similar to the first half excluding tariff refunds. Free cash flow is expected to exceed CHF 9 billion.

Nestlé also agreed in September to sell its mainstream vitamins, minerals and supplements business to Yellow Wood Partners for USD 1.0 billion. The transaction remains subject to regulatory approval and is expected to close in the first half of 2027. The company lists its 2026 full-year results for February 18, 2027.

Nestle stock traded at 93.05 euros on Lang & Schwarz at 11:37 a.m. CET on Thursday, November 5, 2026.

Investors can follow developments in the Swiss market through the SMI overview.

For the real-time quote of Nestle stock, investors can track the latest trading indication.

More news and analyses on Nestle stock cover the company's growth, portfolio changes and financial outlook.