Nestlé Q1 2026 sales performance – summary
- Nestlé Q1 2026 organic growth up 3.5 percent amid multiple crises
- Real internal growth reached 1.2 percent driven partly by pricing
- Coffee and Confectionery led volumes while infant formula dragged results
- Emerging markets outperformed with 6.8 percent organic growth excluding China
- Full-year outlook maintained with improving margins and strong cash flow
Nestlé’s 2026 Q1 sales are out and, considering the multinational was hit by a major infant formula contamination crisis in the opening days of the year, the figures are looking strong.
Organic growth (OG) is up 3.5% and real internal growth (RIG) is up 1.2%.
“Our first-quarter performance demonstrates that our RIG-led growth strategy is delivering,” says Nestlé CEO, Philipp Navratil.
Though the maker of big-name brands like KitKat, Nespresso and Shreddies attributes this to price increases of 2.3%.
What’s more, when we dig deeper into the numbers, we find that RIG was positive in all categories except infant formula within Nutrition, pushing it into the red at -3.5%.
Infant formula scandal
Nestlé is facing an ongoing global health scandal, following the recall of a number of its infant formula products, including SMA Follow-on Milk, in January this year.
The food and beverage giant issued the alert amid concerns the products contained cereulide, a toxin that can cause nausea and vomiting when consumed.
There are currently no confirmed cases of sickness relating to the withdrawn products, however investigations are ongoing.
Danone and Lactalis also issued product recalls over suspected cereulide contamination.
CEO Philipp Navratil, made no mention of the infant formula case in his statement on the sales report, but we’re expecting it to feature heavily in the follow-up investor call later today.
He did however focus on the company’s biggest growth drivers, saying, “results were strong across most Zones and categories, particularly in Coffee and Food & Snacks”.
Coffee and Confectionery power growth
With powerhouse brands like Nespresso and Nescafé in its portfolio, it’s little surprise Coffee continues to rank among Nestlé’s largest and most strategically important categories. The division remains a key engine for growth, delivering 3.5% RIG, and underlining its resilience.
Meanwhile momentum is also building elsewhere in the group. Food & Snacks is steadily climbing the rankings, posting a 2.1% uplift in RIG, as consumer appetite for indulgent and everyday treats remains robust. Within the category, Confectionery is leading the charge, emerging as a standout performer and an increasingly important contributor to Nestlé’s volume‑led growth.
Emerging and established markets
Regionally, emerging markets once again delivered the strongest performance, underscoring their role as a key focus for the group. Organic growth reached 6.8%, supported by robust real internal growth of 2.9%.
By contrast, there’s little change in developed markets. Performance across Europe was described as solid, pointing to stable consumer demand despite a still‑challenging macroeconomic backdrop. And the US business continued to show resilience, with growth holding up amid ongoing cost and pricing pressures.
At group level, Nestlé noted the drag from the infant formula recall, which weighed on both organic growth and RIG by approximately 90 basis points in the first quarter of 2026. Product availability was said to have now returned to “normal levels, setting the stage for recovery – whether consumers return in pre-contamination numbers, however, remains to be seen.
Nestlé’s outlook
Despite a rocky start to the year, Nestlé appears positive about its future.
Full-year organic growth is expected to come in around 3% to 4%, with real internal growth “accelerating versus 2025″, supported by the group’s focused growth initiatives and continued execution across key categories and markets.
Profitability is also expected to improve, with the underlying trading operating profit (UTOP) margin forecast to strengthen compared with last year, supported by efficiency measures and pricing discipline.
Finally, free cash flow is expected to exceed CHF 9bn (€9.8bn), underlining just how confident the world’s biggest CPG is in its earnings quality, capital allocation and balance‑sheet strength.
“Our first-quarter performance demonstrates that our RIG-led growth strategy is delivering,” says CEO Navratil. Building on the momentum in the first quarter, we continue to execute our strategy to deliver a stronger Nestlé.
For now, the numbers suggest Nestlé is weathering the storm better than many might have expected. Strong performances in Coffee and Confectionery are helping to offset the drag from infant formula, while management’s confident guidance signals belief in the group’s underlying momentum.
Still, with investigations ongoing and trust yet to be fully rebuilt in Nutrition, the coming quarters will be a key test of whether Nestlé’s RIG‑led strategy can continue to deliver, or whether recent crises leave a deeper mark on growth.