Top- and Bottom-Line Growth
Company reported strong top- and bottom-line growth in Q1 2026 and delivered growth in gross profit, operating profit, EPS and free cash flow while increasing brand and capability investments.
Organic Sales Acceleration
Organic sales growth accelerated sequentially from Q4, with management maintaining full-year organic sales guidance of 1% to 4%.
Volume and Pricing Strength (Excluding Private Label Pet Exit)
Excluding the impact of the private-label pet food exit, the business grew both volume and pricing across all 4 categories and 4 of 5 divisions; Hill's volume (ex private label) was up 1%.
Emerging Markets Lead Performance
Sales growth was led by emerging markets, notably Asia Pacific (China & India) and Latin America (Mexico and Brazil), with Asia Pacific described as a major driver and LatAm delivering mid-single-digit growth.
Hill's Strong Performance
Hill's delivered solid organic growth ex private label of 4.8% overall (U.S. grew ~5%), with strong growth in Prescription Diet and Science Diet segments and share gains across many channels.
Strategic Productivity Program (SGPP) Expansion
Updated strategic growth & productivity program with expected savings of $200 million to $300 million over the program term (majority flowing in 2027–2028) while keeping program completion by end of 2028.
Continued Investment in Growth Capabilities
Company is increasing investment in advertising, omnichannel demand generation, innovation, data/analytics and AI; management highlighted improving ROI on increased advertising spend and prioritized innovation-led pricing opportunities.