Nestle stock faces portfolio reset after stronger third-quarter growth

Nestle is combining stronger operating momentum with a further portfolio reshaping. In its third-quarter and nine-month sales release on October 22, the company said real internal growth improved to 2.8% in the third quarter, while it maintained its 2026 outlook.

The same release confirmed that Nestle had agreed on September 1 to sell its mainstream vitamins, minerals and supplements business to Yellow Wood Partners for USD 1.0 billion. The transaction remains subject to regulatory approvals and is expected to close in the first half of 2027, so the deal has not yet changed the group's reporting perimeter.

Vitamins sale narrows the portfolio

The transaction covers seven brands: Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu. It also includes the associated US private-label supplements business and dedicated manufacturing, packaging, warehousing and distribution operations.

The business generated USD 1.2 billion in sales in 2025 and operates predominantly in the United States, with additional activity in countries including Canada and China. Nestle said the divestment supports its focus on areas where it sees the strongest competitive advantage. The transaction is therefore a portfolio decision as much as a financing event: the group is reducing exposure to mainstream consumer-health products while retaining a focus on its broader growth platforms.

Third-quarter momentum improves

According to Nestle, group sales reached CHF 22.756 billion in the third quarter, compared with CHF 21.641 billion a year earlier. Organic growth was 4.0%, made up of 2.8% real internal growth and 1.1% pricing.

Growth was positive across all zones and globally managed businesses. Emerging markets delivered 6.8% organic growth, while developed markets grew 2.2%. By product category, Petcare grew 5.3% organically and Food and Snacks 5.0%; Nutrition was broadly flat at 0.3%, reflecting continued pressure from the infant-formula recall.

For the first nine months, organic growth was 3.7%, with real internal growth of 1.9%. Nestle said it remains on track for its medium-term target of sustainable real internal growth above 2%, although the mix of pricing, volume and regional performance remains important for investors.

Guidance remains unchanged

Nestle continues to expect 2026 organic growth of 3% to 4%, with real internal growth accelerating versus 2025. The company also expects its underlying trading operating profit margin to improve from 2025 and free cash flow to exceed CHF 9 billion.

The Russia business was no longer consolidated from the end of September after being placed under temporary external administration. Nestle said the change had no impact on third-quarter or nine-month sales and would have a limited financial impact on 2026 underlying results, while the reporting change will affect comparisons from the fourth quarter.

Nestle stock traded at 93.55 euros on Lang & Schwarz at 11:38 CET on Thursday, November 12, 2026.

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Further updates on the transaction, the Russia reporting change and the 2026 outlook will depend on regulatory progress and Nestle's full-year results, scheduled for February 18, 2027. More news and analyses on Nestle stock.