Nestle stock keeps outlook as Russia exit reshapes reporting

Nestlé strengthened its operating momentum in the third quarter while keeping its full-year targets unchanged. In its October 22 press release, the Swiss food group said organic growth reached 4.0% in the three months to September 30, 2026. Real internal growth, its volume measure, accelerated to 2.8%, while pricing contributed 1.1%.

Volume growth takes the lead

Reported third-quarter sales rose to CHF 22.756 billion from CHF 21.641 billion a year earlier. Growth was positive across all zones and globally managed businesses, according to the company. Emerging markets delivered 6.8% organic growth, with real internal growth of 4.3%, while developed markets posted 2.2% organic growth.

Petcare and Food & Snacks were the strongest product categories during the quarter. Petcare generated 5.3% organic growth and 4.3% real internal growth. Food & Snacks grew organically by 5.0%, while Coffee advanced 3.4%. Nutrition remained weak, with organic growth of 0.3% and negative real internal growth.

Russia changes the reporting perimeter

Nestlé said its Russian business was placed under temporary external administration after a presidential decree in September. Because the group no longer controls management of the operations, the business stopped being consolidated at the end of September. Nestlé remains the legal owner of the assets.

The change does not affect third-quarter or nine-month sales and has only a limited impact on underlying 2026 results, the company said. From the fourth quarter, however, reported sales, underlying trading operating profit and free cash flow will reflect the smaller reporting perimeter. Russia had contributed approximately 2% of group sales and 3% to 4% of underlying trading operating profit and free cash flow on an annualized basis.

Nestlé also derecognized Russian net assets of approximately CHF 1.6 billion and recognized a non-cash charge of approximately CHF 1.4 billion for cumulative currency translation adjustments. The company said the charge has no impact on total group equity, while the deconsolidation is expected to increase group net debt by approximately CHF 0.9 billion at year-end 2026.

Targets remain unchanged

Nestlé continues to target organic growth of 3% to 4% for 2026. It also expects its underlying trading operating profit margin to improve from 2025 and free cash flow to exceed CHF 9 billion. The second-half margin is expected to be broadly similar to the first half, excluding tariff refunds.

Nestlé stock traded at 92.88 euros on Lang & Schwarz at 11:44 CET on Friday, November 6, 2026. The real-time quote of Nestle stock is available separately. The quotation provides a current trading reference, while investors will continue to assess whether volume-led growth can offset the reporting effects from Russia.

Investors can follow the broader Swiss market through the SMI market overview.

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