DANOYDanone S.A.
The Read
3% after Q1 2026 sales showed a sharp slowdown due to a European baby formula recall and Middle East conflict impacts, then rose about 4.
The schedule
- Thu15Oct
President Trump's administration is expected to detail potential tariffs on European imports. Danone's premium water (Evian) and specialized nutrition lines are highly exposed to U.S. margin compression if sweeping trade penalties are enforced.
- Thu22Oct
Following trade and fundamental pressures, this Q3 2026 sales update evaluates volume/mix stabilization. At discounted levels, positive organic growth data can drive a strong relief rally despite broader macro hurdles.
- Mon30Nov
Implementation of new EU recycling and packaging mandates could materially inflate operational costs. With Danone already carrying $700M in quarterly CapEx, forced sustainability compliance threatens to squeeze free cash flow.
- Fri19Feb
The release of FY 2026 results and crucial 2027 guidance. A realistic and conservative outlook reset could serve as a clearing event, inviting defensive institutional capital back into this consumer staples heavyweight.
Past
- Wed5Aug
Actual outcome: Mixed
Danone reported in-line EPS of $0.24 and better-than-expected Q2 sales growth of 4.2%, driven by a recovery in its specialized nutrition unit and strong demand in Asia. Despite maintaining full-year guidance and completing a new dairy joint venture in Argentina, the stock remained flat, resulting in a mixed outcome as the solid fundamental performance was likely already priced into its premium valuation.
With shares trading at a highly overbought $16.97 (RSI 74.1) and a premium 26.1x P/E, Danone's H1 2026 print faces an extreme hurdle. Any guidance softness regarding Middle East impacts or European baby formula margins will likely trigger a sharp 'sell the news' drawdown.
- Thu21May
Actual outcome: Bull · $15.07 at outcome
The stock posted a modest 2.7% gain following the AGM, reflecting a mixed market reaction. While management highlighted Danone's strategic repositioning toward healthier diets, protein, and medical nutrition, upside was likely capped by fresh media scrutiny over the company's handling of infant formula recalls just days prior to the event.
Annual General Meeting where management will provide a strategy update and address specialized nutrition trends.
- Thu23Apr
Actual outcome: Bear · $14.68 at outcome
Danone reported Q1 like-for-like sales growth of 2.7%, driven by positive volume/mix and pricing. However, the stock ultimately broke below the bear floor because this marked a sharp slowdown from the previous quarter, weighed down by a European baby formula recall and the Middle East conflict impacting specialized nutrition sales.
Q1 2026 sales will be the first read on how Danone is holding volume and pricing after a flat revenue year, with $16.01 as the starting point and a likely post-update range between $17.0 on a solid print and $15.0 if volumes or mix disappoint.