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    Is International Paper (IP) A Bargain Following Mixed Q2 Earnings?

    Simply Wall St·08/03/2026 10:15:23
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    Why International Paper’s latest earnings matter for shareholders

    International Paper (IP) reported second quarter 2026 earnings with sales of US$6,004 million and a net loss of US$12 million, compared with sales of US$6,142 million and net income of US$75 million a year earlier.

    For the first half of 2026, the company reported sales of US$11,975 million and net income of US$48 million, compared with sales of US$11,406 million and a net loss of US$30 million in the prior year period. These mixed results give investors fresh context for assessing the stock after the recent move in International Paper’s share price.

    See our latest analysis for International Paper.

    International Paper’s latest earnings release appears to have shifted sentiment in the short term, with the share price falling 5.38% over the past day and 3.15% over the past week. This comes even though the 90 day share price return of 28.56% and 3 year total shareholder return of 28.81% point to momentum that has been building over a longer period.

    If this earnings reaction has you reviewing your portfolio, it could be a good moment to broaden your search and check out opportunities in other areas of the market using the 18 top founder-led companies

    International Paper appears to be a solid packaging business with a long history and recent share price strength, but the latest quarter was weak. After this pullback, is the stock still priced ahead of itself or offering value?

    Most Popular Narrative: 6.4% Undervalued

    International Paper’s most followed narrative places fair value at $43.64 per share compared with the latest close of $40.83. That gap all centers on how the business might convert packaging demand into higher quality earnings over time.

    The company's substantial capital investments in automation, advanced manufacturing, and mill reliability funded by targeted asset divestitures and plant closures are expected to reduce operating costs and materially expand net margins over the next several years. Strategic focus on commercial excellence, including the 80/20 model and improved customer service, is resulting in market share gains in North America and Europe, which should help close the revenue gap with industry peers and lift future earnings.

    Read the complete narrative.

    Want to see what sits behind that efficiency push and margin rebuild story? The narrative leans on detailed forecasts for revenue, earnings and future valuation multiples. The interesting part is how those moving pieces are combined into one fair value path that is very different from today’s share price.

    Result: Fair Value of $43.64 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, International Paper still faces real pressure from mill reliability issues and higher input costs, which could squeeze margins and undermine the current turnaround narrative.

    Find out about the key risks to this International Paper narrative.

    Next Steps

    The mixed tone around International Paper’s earnings, risks and potential rewards makes this a good moment to review the numbers yourself and consider your next steps. To weigh both sides of the story in detail, take a close look at the 3 key rewards and 2 important warning signs

    Looking for more investment ideas beyond International Paper?

    If International Paper’s story has you thinking about what else might be worth your attention, use this moment to widen your search and avoid missing other opportunities.

    The Simply Wall St screener can help you quickly focus on stocks that match the kind of portfolio you want to build.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.