Kraft Heinz (NASDAQ:KHC) shares tumbled 6.3% Wednesday after the food giant's disappointing fiscal 2026 guidance overshadowed better-than-expected fourth-quarter earnings. The company reported adjusted earnings of $0.67 per share, beating analyst estimates of $0.61, but revenue of $6.35 billion missed forecasts and declined 3.4% year-over-year.

Investors reacted negatively to Kraft Heinz's 2026 outlook, which projects earnings per share of $1.98 to $2.10, well below analyst expectations of $2.49. The company also forecast organic net sales to decline between 1.5% and 3.5% compared to 2025. CEO Steve Cahillane, who recently joined the company, emphasized his priority of returning the business to profitable growth through a $600 million investment in marketing, sales, R&D, and product improvements.

The disappointing guidance comes as Kraft Heinz faces ongoing challenges in its core business. For 2025, the company reported a 3.5% decrease in net sales to $24.9 billion, with organic net sales down 3.4%. Adjusted operating income fell 11.5% to $4.7 billion, while adjusted earnings per share decreased 15% to $2.60. Despite these challenges, Kraft Heinz highlighted its free cash flow of $3.7 billion for 2025, up 15.9% from the previous year.