International Paper Stock Slides on Revenue Miss, $1.38 Billion Impairment Charge

Shares of International Paper (IP) slid 6.7% in pre-market trading after the company's third-quarter 2026 earnings report disappointed investors with a revenue miss and a substantial impairment charge that outweighed a better-than-expected adjusted profit.

Earnings Report Breakdown

International Paper reported adjusted earnings per share of $0.37, comfortably beating the analyst consensus of approximately $0.28. However, this positive result was overshadowed by several negative factors.

Net sales for the quarter came in at $6.20 billion, falling short of Wall Street expectations, which ranged from roughly $6.26 billion to $6.29 billion. More significantly, the company recorded a $1.38 billion non-cash goodwill impairment charge related to its Packaging Solutions EMEA segment. This write-down pushed the reported loss from continuing operations to $1.10 billion, more than double the loss from the same period a year ago.

Weakening Cash Flow and Reduced Visibility

Underlying financial metrics pointed to further pressure on the business. The company's cash flow deteriorated significantly during the quarter, adding to investor concerns.

Ad

• Free Cash Flow: Swung to a negative $267 million from a positive $150 million in the prior-year period.
• Operating Cash Flow: Dropped sharply by 44% year-over-year to $339 million.

Compounding the negative news, International Paper announced it will no longer provide financial guidance for its EMEA segment. The company cited the planned separation of the business and U.K. regulatory requirements for the change, which reduces forward-looking visibility for investors.

Context and Market Impact

In a statement, CEO Andy Silvernail acknowledged that "persistent macro headwinds" continued to weigh on results, particularly in the EMEA region where soft demand offset progress on cost reductions. The stock's pre-market decline sent it toward its 52-week low of $29.26.

For investors, the combination of a revenue shortfall, the large scale of the EMEA write-down, deteriorating cash flow, and the suspension of guidance for a key segment created a decidedly negative outlook. These factors prompted a reassessment of the company's turnaround progress, overwhelming the adjusted earnings beat and triggering a sharp sell-off in its shares.