Campbell Soup Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.51%.
Did CPB Beat Earnings? Q3 2025 Results
Campbell's delivered a stronger-than-expected third quarter for fiscal 2025, with adjusted EPS of $0.73 beating the $0.66 Wall Street consensus by 11.38% and revenue of $2.48 billion topping estimates by 1.87% as sales grew 4.5% year over year. The headline beat masked a sharply divided quarter, however: a surging Meals & Beverages segment, lifted by rising consumer preference for home-cooked meals amid economic uncertainty, drove 15% net sales growth in that division and more than offset persistent weakness in Snacks, where net sales fell 8% and a $150 million non-cash impairment charge on the Snyder's of Hanover trademark dragged GAAP EPS down 50% to $0.22. The Sovos Brands acquisition, completed in March 2024, remained the primary engine of reported top-line growth, with Rao's sauces a notable contributor. <a href="https://247wallst.com/investing/2025/06/02/campbell-soup-earnings-coverage-live/">Tracking the full results</a>, Campbell's reaffirmed its fiscal 2025 adjusted EPS guidance of $2.95 to $3.05 but now expects to land at the low end of that range, citing the slower-than-anticipated Snacks recovery and a potential tariff headwind of $0.03 to $0.05 per share.
- Sovos Brands acquisition contributed incremental sales growth
- Favorable volume/mix of 2% overall, 7% in Meals & Beverages
- Consumers cooking at home at highest levels since early 2020
- U.S. soup sales increased across condensed, broth, and ready-to-serve
- Rao's pasta sauce sales increased driven by shipment timing related to SAP implementation
- Supply chain productivity improvements and cost savings initiatives
- Snacks organic sales declined 5% driven by Goldfish, Snyder's of Hanover, Late July, and Lance weakness
- $150 million non-cash impairment charge on Snyder's of Hanover trademark
“We delivered solid third quarter results that exceeded our expectations partially due to favorable shipment timing. In Meals & Beverages, we are seeing improved consumption across all consumer income groups. Consumers are cooking at home at the highest levels since early 2020 and turning to our brands for value, quality, and convenience. Within Snacks, performance was mixed across the portfolio, and while we're benefiting from some strong innovation launches, we are adjusting our plans to make sure we're competitive across our full brand portfolio. Our overall performance reflects our strong execution and disciplined cost management in what remains a dynamic operating environment. We continue to evolve our organization and capabilities to better leverage our scale for growth and drive long-term value creation.”
Campbell's CEO, on the earnings call
Forward Guidance & Outlook
Campbell's reaffirmed its full-year fiscal 2025 guidance: reported net sales growth of +6% to +8%, organic net sales of -2% to 0%, adjusted EBIT growth of +3% to +5%, and adjusted EPS of $2.95 to $3.05 (a decline of -4% to -1% versus FY2024). However, adjusted EBIT and EPS are now expected at the low end of these ranges due to the slower-than-anticipated recovery in the Snacks business. The tariff impact is excluded from guidance but could represent up to an incremental $0.03 to $0.05 per share headwind if current tariffs remain in place. Fiscal 2025 includes a 53rd week estimated to contribute approximately 2 points of growth to reported net sales and adjusted EBIT, and approximately $0.05 of adjusted EPS.
CPB YoY Financials
CPB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.