Nestlé reported organic sales growth of 4.0% for the third quarter on Thursday, led by its Petcare and Food & Snacks businesses, the company said.
Analysts surveyed by Bloomberg had expected 3.42% on average.
Real internal growth, which Nestlé abbreviates as RIG, was 2.8%, and pricing added 1.1%. The company said pricing moderated as expected. Analysts had forecast a 1.74% rise in prices, according to Bloomberg.
Petcare organic growth was 5.3%, with RIG of 4.3%, driven by cat food. Food & Snacks organic growth was 5.0%, supported by Americas confectionery, improving U.S. frozen foods and seasonal order phasing. Coffee organic growth was 3.4%, and Nutrition was 0.3%.
Emerging markets grew 6.8% organically, while developed markets grew 2.2%. Reported sales for the quarter were 22.8 billion Swiss francs.
"Our execution is driving stronger growth," CEO Philipp Navratil said in a statement. He said RIG was positive across all zones and globally managed businesses.
Nestlé maintained its 2026 guidance. It expects organic growth of 3% to 4%, with RIG accelerating from 2025. It also expects the underlying trading operating profit margin to improve from 2025 and free cash flow above 9 billion Swiss francs.
Chief Financial Officer Anna Manz said on an investor call that input costs face upward pressure, according to Bloomberg. She said Nestlé will pass higher costs on to shoppers only as far as it can while keeping consumers buying over the medium term, according to Bloomberg.
Nestlé also gave an update on its portfolio. On Sept. 1, the company agreed to sell its mainstream vitamins, minerals and supplements business to Yellow Wood Partners for $1.0 billion. The sale is subject to regulatory approvals and is expected to close by the first half of 2027. The business had 2025 sales of $1.2 billion.
Nestlé said its Russian operations have been placed under temporary external administration following a Russian presidential decree published in September. The company no longer consolidates them as of the end of September. The change had no effect on third-quarter or nine-month sales. It removes about 1.6 billion Swiss francs of net assets and adds about 0.9 billion Swiss francs to year-end net debt. Russia contributed about 2% of group sales on an annualized basis.
Nestlé stock rose as much as 2.7% in Zurich on Thursday.
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