Campbell Soup Company
Q4 2026 Earnings
GAAP EPS of $(0.23) includes $117 million ($0.29/share) in impairment charges on Cape Cod and Kettle Brand trademarks, $75 million ($0.19/share) in cost savings and optimization initiative costs, $22 million ($0.05/share) in La Regina acquisition costs, $7 million ($0.02/share) in pension actuarial losses, $14 million ($0.03/share) in commodity mark-to-market losses, and $3 million ($0.01/share) in litigation expenses
Market Reaction
Did CPB Beat Earnings? Q4 2026 Results
Campbell's Company delivered a narrowly mixed fourth-quarter fiscal 2026 report, squeezing past earnings expectations while falling just short on revenue against a backdrop of deepening strategic pressure. Adjusted EPS of $0.39 edged past the $0.39 consensus by 0.28%, but the headline GAAP result swung to a loss of $0.23 per share, weighed down by $117 million in trademark impairment charges on the Cape Cod and Kettle Brand names alongside $75 million in restructuring costs. Net sales of $2.14 billion declined 7.9% year over year and missed estimates by 0.32%, though the comparison was heavily distorted by a 53rd week in the prior-year period that accounted for an estimated seven percentage points of that decline. The Snacks segment was the clearest drag, with organic sales falling 6% and segment operating earnings plunging 34%, while Meals and Beverages offered a rare bright spot with 3% organic growth. Looking ahead, management's fiscal 2027 guidance calls for adjusted EPS of $1.65 to $1.80, and the company cut its quarterly dividend 36% to $0.25 per share to accelerate debt reduction, signaling that the path to recovery will require patience.
- Meals & Beverages organic sales growth of 3% driven by favorable volume/mix
- Snacks organic sales decline of 6% driven by weak salty snacks portfolio and third-party partner brand declines
- Cost inflation and tariff-related supply chain costs compressed gross margins by 310 basis points (GAAP) and 190 basis points (adjusted)
- Supply chain productivity improvements partially offset cost headwinds
- Extra 53rd week in prior year estimated to impact Q4 net sales by 7 points, adjusted EBIT by 8%, and adjusted EPS by $0.06/share
“Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds. Our performance is not where it needs to be, and we are taking decisive action to improve it. We are increasing our focus on the consumer, sharpening execution, reducing costs to support investment in our brands, and strengthening our balance sheet, including resetting our dividend. We enter fiscal 2027 with leading brands including Campbell's, Rao's, Goldfish and Pepperidge Farm, a resilient Meals & Beverages division benefiting from durable at-home cooking trends, and actions underway to strengthen Snacks. The steps we are taking are designed to improve growth, expand margins, reduce leverage, and position Campbell's for sustainable long-term value creation.”
Campbell's CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027, Campbell's expects net sales to decline 4% to 2%, organic net sales to decline 4% to 2%, adjusted EBIT to decline 12% to 7%, and adjusted EPS in the range of $1.65 to $1.80 (a decline of 24% to 17% from fiscal 2026). The outlook reflects continued volatile external conditions, another year of elevated inflation, and longer-term margin benefits expected to build through the year. The La Regina acquisition is expected to contribute a modest benefit to net sales and be neutral to adjusted EPS. Guidance includes the company's current understanding of government policy and tariffs but does not assume impacts from new tariffs or changes to existing tariff rates.
CPB YoY Financials
CPB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.