What International Paper’s latest earnings mean for investors

International Paper (IP) recently released second quarter 2026 results that showed lower sales compared with a year earlier and a net loss for the period. This earnings swing is now central to how investors view the stock.

For the quarter ended June 30, 2026, International Paper reported sales of US$6,004 million compared with US$6,142 million a year earlier. The company moved from net income of US$75 million in the prior year quarter to a net loss of US$12 million. Basic and diluted loss per share from continuing operations were both US$0.02, compared with basic and diluted earnings per share from continuing operations of US$0.14 a year ago.

The six month picture shows a different pattern. Sales for the first half of 2026 were US$11,975 million compared with US$11,406 million a year earlier. Net income for the period was US$48 million, compared with a net loss of US$30 million a year ago. Basic and diluted earnings per share from continuing operations were US$0.12, compared with a basic and diluted loss per share from continuing operations of US$0.10 in the prior year period. On a total basis, basic and diluted earnings per share were US$0.09, compared with a basic and diluted loss per share of US$0.06 a year ago.

International Paper’s latest quarter arrived alongside a share price of US$41.34, with a 30-day share price return of 8.99% and a 90-day share price return of 25.77%, while the 1-year total shareholder return declined 8.15% and the 3-year total shareholder return rose 34.50%. This suggests recent momentum has picked up compared with the longer term.

If the earnings swing has you reassessing your options, this is a good time to widen the lens and check out 19 top founder-led companies

Bulls point to International Paper’s recent share price strength and improving six month earnings, while bears focus on the latest quarterly loss and mixed long term returns. Which side does the current valuation support next?

Most Popular Narrative: 5.3% Undervalued

Based on the most followed narrative, International Paper’s fair value of $43.64 sits modestly above the recent $41.34 share price. That gap anchors how some investors frame the latest earnings swing.

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. This may help close the revenue gap with industry peers and lift future earnings.

The core of this International Paper narrative is simple: better pricing, higher margins, and a different earnings profile. The details rest on specific revenue, margin and valuation targets that stretch well beyond today’s loss making quarter.

Result: Fair Value of $43.64 (UNDERVALUED)

However, investors also need to weigh risks such as mill reliability issues that have reduced profit so far this year, as well as pricing pressure in an oversupplied European containerboard market.

Next Steps

With sentiment on International Paper split between concern over risks and interest in potential rewards, it can be useful to move quickly and review the data yourself. You can weigh both sides of the story in one place with the 3 key rewards and 2 important warning signs

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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.