Reckitt: Q326 Core LFL miss at +3.3%, with top-line guidance lowered

Reckitt reported Q3 core LFL growth of +3.3%, below consensus of +4.1%, with group LFL at +3.2% versus +3.6% expected. North America was the main source of the miss at -1.3%, reflecting manufacturing capacity constraints for Lysol, while Europe rose 0.8% and Emerging Markets grew 8.0%. Management lowered FY26 core LFL guidance to +3.5-4.5% from +4-5%, citing the Lysol disruption and a slower China VMS market, while maintaining its margin guidance of 24.9-25.6%. J.P. Morgan maintains an Overweight rating and a Dec-27 price target of 6,500p. The broker expects little change to consensus top-line forecasts, low-single-digit FY26 EPS upgrades from lower net finance costs, but low-single-digit FY27 EPS downgrades due to higher net interest costs. With the shares up 12% over the past month, the headline miss and FY27 EPS cut may weigh on the stock.