Kraft Heinz shares tumbled nearly 7% Wednesday as the company paused plans to split into two separate businesses, citing a need to focus on improving its financial performance. The decision comes alongside a weak outlook for 2026, forecasting an organic net sales decline of 1.5% to 3.5% and an adjusted operating profit drop of 14% to 18%.
Newly appointed CEO Steve Cahillane stated the challenges facing the company are “fixable and within our control,” according to a company announcement. The pause in the separation plan allows Kraft Heinz to concentrate on operational improvements, Cahillane indicated.
The company reported a net loss of $5.85 billion for the full year 2025, a significant downturn from the $2.74 billion profit reported in 2024. This loss was largely attributed to $9.3 billion in non-cash impairment losses, according to financial reports.
The market experienced mixed trading on Wednesday, with several stocks experiencing significant movement. Vertiv Holdings Co. (VRT) saw a surge of over 20%, closing at $241.16 following a strong fourth-quarter earnings report. The company’s earnings per share reached $1.36 with revenue of $2.88 billion, driven by robust demand in the data center market and increasing demand for AI infrastructure. Organic orders increased 252% year-over-year and 117% from the third quarter.
Cloudflare also experienced gains, jumping 14% in pre-market trading after releasing better-than-expected revenue forecasts for the year and the first quarter. Conversely, Lyft shares fell 17% in pre-market trading after issuing quarterly profit and annual ride volume forecasts below expectations.
Warner Bros Discovery (WBD) is facing pressure from activist investor Ancora Capital, which has taken a $200 million stake in the company and plans to oppose a deal with Netflix regarding its studios and streaming assets. This development adds complexity to the ongoing consolidation within the entertainment industry.
Other notable market movements included Mattel, which plunged nearly 31% in pre-market trading after disappointing annual profit forecasts and Moderna, which fell nearly 9% after the FDA indicated it would not review the application for its flu vaccine. Humana shares also dropped 8% in pre-market trading after anticipating lower-than-expected annual profits due to declining quality ratings for its Medicare Advantage plans. Gilead Sciences issued financial forecasts for 2026 within the lower range of analyst expectations, impacting its stock performance.