Campbell Soup Company
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.77%.
Did CPB Beat Earnings? Q1 2026 Results
Campbell's posted a modest beat to open fiscal 2026, delivering first-quarter earnings per share of $0.77 against a consensus estimate of $0.73, a 4.96% positive surprise, while revenue of $2.68 billion edged past the $2.66 billion estimate by 0.83%, though sales still fell 3.4% year over year as broad-based volume softness weighed on both segments. The Meals & Beverages division, which saw organic sales slip 2% to $1.67 billion, remained pressured by declines across U.S. soup, Pace sauces, and V8 beverages, while the Snacks segment posted a 1% organic sales decline to $1.01 billion amid continued weakness in pretzels and crackers; combined, these pressures drove adjusted gross margin down 150 basis points to 29.9%, with cost inflation and tariff headwinds only partially offset by roughly $15 million in quarterly cost savings. A strategic bright spot was Campbell's announcement of a $286 million deal to acquire a 49% stake in La Regina, the Italian producer behind the Rao's brand. Management reaffirmed full-year guidance, projecting organic net sales in a range of -1% to +1% and adjusted EPS of $2.40 to $2.55.
- Organic net sales declined 1% driven by volume/mix declines of 3%, partially offset by favorable net price realization of 1%
- Gross profit margin contracted 150 basis points (adjusted) driven by cost inflation, tariff impacts, and unfavorable volume/mix
- Cost savings and supply chain productivity improvements partially offset inflation headwinds
- Rao's brand posted gains within Meals & Beverages segment
- Pepperidge Farm cookies gained in an otherwise soft Snacks segment
- U.S. soup sales decreased 2% primarily due to declines in ready-to-serve and condensed soups, partially offset by broth gains
- Lower administrative expenses and marketing/selling expenses helped partially offset gross profit declines
“Our first quarter performance was in line with our expectations reflecting sharpened in-market execution in a dynamic operating environment. Consumers remain intentional in their shopping behaviors with at-home-cooking trends continuing to benefit our brands within our Meals & Beverages portfolio that deliver quality, convenience and value. Additionally, our expanded partnership with La Regina strengthens our ability to deliver on the Rao's growth opportunity. While our Snacks business continues to weather category softness, our brands remain highly relevant. Across our portfolio, we continue to focus on quality, value and evolving consumer preferences with elevated brand support and innovation. Simultaneously, our teams are making great progress on cost savings and productivity initiatives to help offset inflation and continue to invest in our brands. We are moving quickly and with a continued focus on delivering today while we build for tomorrow.”
Campbell's CEO, on the earnings call
Forward Guidance & Outlook
Campbell's reaffirmed its full-year fiscal 2026 guidance: organic net sales growth of -1% to +1% (based on FY25 52-week organic net sales of $9,979 million), adjusted EBIT decline of 9% to 13% (from FY25 adjusted EBIT of $1,458 million), and adjusted EPS of $2.40 to $2.55 (decline of 12% to 18% from FY25 adjusted EPS of $2.91). The La Regina acquisition, expected to close in the second half of fiscal 2026, is expected to be neutral to the reaffirmed adjusted EPS guidance. Guidance excludes the impact of the additional 53rd week in fiscal 2025. The company intends to use cost savings as one of several levers to help offset tariff headwinds.
CPB YoY Financials
CPB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.