On 22 October 2026, Nestlé reported revenue of CHF 65.90 billion for the first nine months of the year, stable year on year. The Vevey-based group posted organic growth of 3.7%, offset by negative currency effects of the same magnitude. The results beat analysts' expectations, and Nestlé shares were rising in morning trading on the Swiss stock exchange.
Organic growth and currency effects: two figures that cancel each other out
The stable revenue hides two opposing movements. Organic growth, which measures business activity excluding currency effects, reached 3.7% over nine months, compared with 3.3% a year earlier. Currency effects, negative at 3.7%, wipe out this gain once sales are converted into Swiss francs, the currency in which Nestlé reports its accounts.
The quality of growth is improving. Real internal growth (RIG), which measures volumes, rose from 0.6% to 1.9%. The pricing effect fell from 2.8% to 1.8%. Nestlé is therefore selling more products and relying less on price increases than a year earlier.
| Indicator | Nine months 2025 | Nine months 2026 |
|---|---|---|
| Organic growth | 3.3% | 3.7% |
| Real internal growth (volumes) | 0.6% | 1.9% |
| Pricing effect | 2.8% | 1.8% |
| Currency effects | not specified | -3.7% |
| Revenue | stable, at CHF 65.90 billion in 2026 | |
The third quarter accelerates
The third quarter outperformed the nine-month average. Revenue reached CHF 22.76 billion, compared with 21.64 billion in the same period a year earlier. Organic growth came in at 4.0%, above the 3.7% for the period as a whole. The pace therefore picked up after the first half.
Waters and beverages drove the quarter, with organic growth of 12.3%. Nutrition grew by only 0.3%. Nestlé attributes this in particular to the recall of infant formula, and notes that sales of infant milk in Europe "are lagging behind".
Organic growth reached 6.8% in emerging markets. In China, the group's second-largest market after the United States, it stood at 4.2%. Nestlé had been hit hard there by the drop in consumer confidence in the first half, and considers that "market conditions remain difficult".
What this means for Nestlé and Nestlé shares
For the Vevey group, these figures support the refocusing sought by its new CEO, Philipp Navratil. Nestlé is concentrating its efforts on coffee, pet care, nutrition, culinary products and snacks. According to its chief executive, this choice is starting to pay off.
Readings remain nuanced. "We are pleased with the progress made, even though we have not yet reached our targets," Philipp Navratil told the media. Analysts, for their part, welcomed "solid results, despite the presence of temporary factors". The course is seen as the right one, but management admits there is still work to be done.
The stock market reacted favourably on the day of publication. At around 10:45, Nestlé registered shares were up 1.4% at CHF 84.65. They ranked third in an SMI (Swiss Market Index) down 0.18%. This one-morning move says nothing about how the stock will perform over the longer term.
For a shareholder who thinks in Swiss francs, these accounts are a reminder of the weight of currency conversion. Strong momentum abroad does not necessarily translate into higher sales in francs. Over nine months, all of the organic growth was absorbed by currency effects.
The issues weighing on the group
The infant milk recall directly affects Switzerland. In early January 2026, Nestlé recalled certain batches of the BEBA and Alfamino brands due to the potential presence of cereulide. This toxin can cause dangerous vomiting in newborns. At the time, the recall concerned 31 countries and less than 0.5% of revenue; by mid-October, around 60 countries were affected.
In the United States, subsidiary Gerber faces lawsuits over the alleged presence of toxic metals in baby products, including the Texas lawsuit against Gerber. This year the group also had to answer for prohibited treatments of Nestlé Waters mineral waters and for illegal dumping.
In Russia, Nestlé has lost control of its two main subsidiaries. In September 2026, Nestlé Russia and Nestlé Kuban were placed under Russian state control. The group deconsolidated them with effect from 30 September 2026. According to Philipp Navratil, the event had no impact on sales in the third quarter or the first nine months, and will have only a limited financial impact on recurring results for 2026. He declined to say more.
What we don't know yet
- The cost of Russia in 2027. Nestlé admits that the situation could weigh on its margin in 2027, without quantifying this effect. This is a forecast, not an observation.
- The savings planned to compensate. The group is announcing savings, but the news report specifies neither the amount, nor the timetable, nor the activities concerned.
- Management's targets. Philipp Navratil says he has not yet reached them, without their content being detailed.
- How long the temporary factors will last. Analysts point to them, and Nutrition remains held back by the infant milk recall in Europe.
- The outcome of the lawsuits against Gerber. No court has yet ruled on the Texas lawsuit, and the amount claimed is not known.
Sources
- Allnews (AWP): "Nestlé se maintient stable en dépit des remous", 22 October 2026
- 2clics.com: "Heavy metals in baby food: Texas sues Nestlé and Gerber", 16 October 2026
