Campbell Soup Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.96%.
Did CPB Beat Earnings? Q4 2025 Results
Campbell's closed out fiscal 2025 with a mixed but largely resilient quarter, posting adjusted EPS of $0.62 against a consensus estimate of $0.57, an 8.77% beat, even as revenue of $2.32 billion came in just shy of the $2.34 billion analysts expected, a -0.74% miss, with sales rising 1.2% year-over-year. A key asterisk: the quarter spanned 14 weeks, with the extra 53rd week estimated to have contributed roughly 7% to net sales and 10% to adjusted EPS, meaning the underlying organic picture was softer, with organic net sales declining 3% after stripping out that calendar boost and divestiture impacts. Meals & Beverages was the relative bright spot, with leadership brands including Rao's, now approaching $1.00 billion in annual sales, gaining traction as home-cooking trends held steady. Looking ahead, the company faces a materially tougher fiscal 2026, guiding adjusted EPS to $2.40 to $2.55, a decline of 12% to 18%, with roughly two-thirds of that shortfall tied to net tariff headwinds. For <a href="https://247wallst.com/investing/2025/08/04/top-3-undervalued-dividend-stocks-to-buy-in-august/">income-focused investors</a>, Campbell's also reaffirmed its quarterly dividend of $0.39 per share.
- Strong in-market performance of leadership brands in Meals & Beverages outpacing category growth
- Consumers continuing to cook at home benefiting soup and sauce categories
- Sovos Brands acquisition contributing to net sales and EBIT growth for full year
- 53rd week contributed an estimated 7% to Q4 net sales and 10% to Q4 adjusted EPS
- Cost savings program delivering approximately $145 million of $375 million target
- Supply chain productivity improvements partially offsetting cost inflation
“Our fiscal 2025 results were slightly ahead of our expectations, driven by our team's focus on execution in a dynamic operating environment. Meals & Beverages benefited from the continued strong in-market performance of our leadership brands, outpacing category growth as consumers continued to cook at home. We are pleased with Rao's post-acquisition momentum as it approaches becoming our fourth $1 billion dollar brand, alongside Campbell's, Goldfish and Pepperidge Farm. While our Snacks business weathered category softness, we delivered a modest sequential improvement to net sales and in-market consumption in the fourth quarter. We remain confident in our Snacks portfolio and are taking decisive actions to return the business to sustained growth.”
Campbell's CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Campbell's expects net sales change of -2% to 0% versus a comparable 52-week base of $10.087 billion. Organic net sales are guided at -1% to +1%. Adjusted EBIT is expected to decline 13% to 9%, and adjusted EPS is guided at $2.40 to $2.55, representing an 18% to 12% decline. Approximately two-thirds of the adjusted EPS decline at the midpoint is attributable to net tariff impact, with gross tariffs projected at approximately 4% of cost of products sold and about 60% mitigation in place. The company expects low-single digit core inflation excluding tariffs, productivity improvements of approximately 5% of COPS, enterprise cost savings of approximately $70 million, adjusted effective tax rate of approximately 24%, adjusted interest expense of $320-$325 million, diluted share count of approximately 300 million, and capital expenditures of approximately 4% of net sales. The cost savings target has been raised 50% from $250 million to $375 million by end of fiscal 2028.
CPB YoY Financials
CPB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.