Ahold Delhaize beats consensus in the third quarter but lowers its targets following a cyberattack
Ahold Delhaize posted underlying diluted EPS of €0.69 in the third quarter of 2026, up 1.4% at constant exchange rates. This figure exceeds the €0.65 average expected by analysts. The retailer nonetheless lowered its annual targets due to the cybersecurity incident that disrupted its operations in October.
Underlying diluted EPS growth for 2026 is now expected to be in the low single digits at constant exchange rates, compared with mid-to-high single digits previously.
Annual free cash flow has been reduced to approximately €2.1 billion, from at least €2.3 billion. Quarterly revenue reached €23.1 billion, up 1.9% at constant exchange rates and 2.6% at current exchange rates.
The October cyber incident weighs on the fourth quarter and 2026 guidance
The group reported the incident on October 12, 2026. It then took certain systems offline to protect its IT environment. The disruptions mainly affected online sales in the Benelux and the United States, as well as the supply chain in the Benelux, while the Bol platform was not affected.
According to the group's current estimates, the incident is expected to reduce fourth-quarter revenue by €200 to €250 million. Underlying and IFRS operating profit would be reduced by €75 to €100 million. Additional incident response and remediation costs are also expected to have a marginal impact on 2026 IFRS operating profit.
The 2026 underlying operating margin target remains approximately 4.0%, unchanged. The free cash flow revision also reflects the effect of new regulations on supplier payments in Serbia.
Frans Muller, President and Chief Executive Officer, said most of the disruption had been contained within two weeks, with work continuing to fully restore operations. "Our response demonstrates the resilience of our business; the incident does not define our business," he said.
US margin declines, Europe drives sales growth
In the United States (€13.3 billion in sales), revenue grew 1.1% at constant exchange rates and like-for-like sales excluding fuel rose 0.5%. The reduction in SNAP food assistance, a cyclosporiasis outbreak, egg price deflation and pharmacy prices linked to the Inflation Reduction Act reduced this growth by approximately 2.1 percentage points.
Online sales in the US rose 14.2%, marking a tenth consecutive quarter of double-digit growth. The US underlying operating margin declined 0.3 points to 4.3%, due to non-recurring items from last year, price investments and higher energy costs.
In Europe (€9.8 billion), sales increased 3.1% at constant exchange rates. They were driven by a 2.1% increase on a like-for-like basis excluding fuel, the acquisition of Delfood and net store openings, in a context of deflation in most of the group's European markets.
The European underlying operating margin is stable at 4.0%, as the reduction in the IMCA tax and synergies in Romania offset the decline in performance in Serbia. At group level, this indicator fell 0.1 point at constant exchange rates, to 4.1%. A favorable effect from the remeasurement of insurance provisions was offset by the US decline.
IFRS result above underlying, a €1 billion share buyback in 2027
IFRS operating profit reached €976 million, a margin of 4.2%. It exceeded underlying profit by €30 million, mainly due to a US pension settlement. IFRS diluted EPS from continuing operations stood at €0.72, and quarterly free cash flow at €445 million, supported by an improvement in working capital.
During the quarter, the group bought back 8.6 million of its shares for €280 million, or €844 million since the beginning of the year. It announced a €1 billion share buyback programme starting in early 2027 and aims for a mid-single-digit increase in dividend per share for 2026.
Ahold Delhaize also signed an agreement to acquire 100% of Tesco in the Czech Republic and Slovakia, subject to customary conditions, including regulatory approvals. The revised annual targets thus bear the mark of the October incident, while the third quarter recorded sales growth in both regions and underlying diluted EPS growth.
