Newell Brands (NWL) returned to quarterly sales growth for the first time in more than four years, with most of its leading consumer brands and key markets posting gains, RBC Capital Markets said Monday in a report.

The company in Q2 also recorded $100 million of pretax refunds tied to tariffs imposed under the International Emergency Economic Powers Act, which were material to results and prompted a sizable increase to full-year guidance, according to the report. RBC said that the duty recovery improved Newell's cash-flow outlook, now projected at about $400 million for 2026.

Newell still faces pressure from remaining tariff costs and higher input prices, with duty expenses now estimated at $127 million, up $12 million from last year, and inflation expected to add about $200 million, up $50 million from the prior earnings call, the report said.

RBC raised its full-year estimates and now expects 0.8% core sales growth, compared with a prior forecast for a 0.3% decline, and $0.76 in earnings per share, up from $0.56.

RBC adjusted its price target on Newell stock to $5 from $4 and maintained its sector perform rating.

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