June 8, 2026

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The Campbell’s Company (NASDAQ: CPB) reported third-quarter fiscal 2026 results with lower sales and weaker adjusted profit, but adjusted earnings came in above expectations and the company reaffirmed full-year guidance.
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Campbell’s is a packaged food company with brands across soup, meals, beverages, snacks, crackers, sauces, and bakery products, including Campbell’s, Rao’s, Swanson, Prego, Goldfish, Pepperidge Farm, Snyder’s of Hanover, and Cape Cod.
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The company reported adjusted EPS of $0.50, above estimates of $0.48, representing a 4.2% earnings surprise. Revenue came in at $2.37 billion, below estimates of $2.39 billion, with revenue down 4.4%.

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Results Stayed Under Pressure

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Net sales decreased 4% to $2.4 billion on both a reported and organic basis, driven mainly by lower volume and mix, partly offset by positive pricing. Meals & Beverages sales fell 4%, with U.S. soup sales down 8%. Snacks sales also declined 4%, pressured by weakness in salty snacks, crackers, fresh bakery, partner brands, and contract manufacturing.
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Gross margin fell to 27.5% from the prior year, while adjusted gross margin declined 240 basis points to 27.7%. Campbell’s said margin pressure came from inflation, tariffs, and supply chain costs, partly offset by productivity improvements, cost savings, and pricing.
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Adjusted EBIT declined 24% to $274 million, while adjusted EPS fell 32% to $0.50. GAAP EPS increased to $0.41 from $0.22, helped by the absence of a large prior-year impairment charge.
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Campbell’s generated $839 million in fiscal year-to-date operating cash flow and returned $380 million to shareholders, mainly through dividends.

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Guidance Reaffirmed

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Campbell’s reaffirmed its full-year fiscal 2026 guidance for organic net sales, adjusted EBIT, and adjusted EPS.
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The company also said it delivered about $20 million in cost savings during the quarter, bringing total savings to $200 million toward its fiscal 2028 target of $375 million.

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The Bigger Picture

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Campbell’s quarter showed a defensive food company still facing volume and margin pressure.
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The earnings beat and reaffirmed guidance helped, but sales declines, lower adjusted EBIT, weaker adjusted EPS, and inflation-driven margin pressure remain key concerns. The next test is whether Campbell’s can stabilize volumes while using cost savings and productivity to offset tariffs and higher supply chain costs.
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