Quad/Graphics Reports Slight Increase in Net Sales for Q2 2026

Quad/Graphics, Inc. reported a slight increase in net sales for the second quarter of 2026, reaching $577.5 million, up from $571.9 million in the same period last year. The company's product sales rose to $451.8 million, a 0.8% increase from $448.0 million, while service sales also saw a modest rise of 1.5%, totaling $125.7 million compared to $123.9 million in 2025. Despite this growth, the company experienced a decline in profitability, with net earnings of $3.7 million, compared to a loss of $0.1 million in the prior year, resulting in earnings per share of $0.07, up from $0.00.

In the first half of 2026, Quad's total net sales decreased to $1.158 billion from $1.201 billion in the same period of 2025, primarily due to a decline in print product volumes. The company reported a decrease in product sales of $34.8 million, or 3.7%, and service sales fell by $8.0 million, or 3.1%. Operating income for the first half was $32.6 million, slightly down from $33.3 million in 2025, while the operating margin remained stable at 2.8%.

Strategically, Quad has been focusing on integrating its operations following the acquisition of Enru Co-mail assets in April 2025, which is expected to enhance its logistics and co-mailing capabilities. The company also divested its European operations in February 2025, which has impacted its revenue figures. As of June 30, 2026, Quad employed approximately 10,100 people and served around 2,100 clients, indicating a stable workforce and client base despite the operational changes.

Operationally, Quad's restructuring efforts have led to a reduction in costs, with total operating expenses for the second quarter increasing only marginally to $562.6 million from $558.2 million. The company recorded restructuring, impairment, and transaction-related charges of $9.7 million, up from $9.2 million in the previous year. The company continues to face challenges such as rising material costs and competitive pressures in the printing industry, which have prompted ongoing cost-saving measures.

Looking ahead, Quad anticipates continued pressure on its print volumes due to market conditions and evolving consumer preferences. The company remains committed to its transformation into a marketing experience company, focusing on enhancing its service offerings and operational efficiencies. Management expects to navigate these challenges while maintaining a strong balance sheet and returning capital to shareholders through dividends and share repurchases.