Quarterly snapshot
Campbell’s Company reported third-quarter adjusted earnings per share of $0.50, marginally above the analyst consensus of $0.49. Revenue for the quarter was $2.4 billion, a 4% decline from the prior year, and slightly ahead of the $2.39 billion estimate. The company said organic net sales declined 4%, a drop attributed primarily to lower volume and mix, partially offset by positive net price realization.
Executive comment
"Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds," said Mick Beekhuizen, Campbell’s President and Chief Executive Officer.
Margins and profitability
Adjusted EBIT declined 24% to $274 million for the quarter, reflecting margin erosion associated with cost inflation and elevated supply chain costs, including tariff impacts. Adjusted gross profit margin contracted by 240 basis points to 27.7%. The company noted that supply chain productivity improvements and cost savings initiatives provided partial offsets to those headwinds.
Category performance
The Meals & Beverages segment saw net sales fall 4%. Within that segment, U.S. soup sales decreased 8%, with condensed and ready-to-serve varieties cited as the primary drivers of the decline. The Snacks segment also recorded a 4% decline in net sales, with weakness reported across salty snacks, crackers and fresh bakery products.
Cash flow and cost savings
Year-to-date cash flow from operations totaled $839 million, down from $872 million in the prior year. During the quarter, Campbell’s delivered approximately $20 million in cost savings, bringing cumulative savings to $200 million toward a fiscal 2028 target of $375 million.
Guidance
Campbell’s reaffirmed its full-year fiscal 2026 guidance. The company expects organic net sales to be down 2% to down 1%, and it maintained its adjusted EPS guidance range of $2.15 to $2.25. That range represents a decline of 26% to 23% compared with fiscal 2025 results excluding the 53rd week. The midpoint of the guidance is $2.20, versus the prior year’s adjusted EPS of $2.91.
Market reaction and analyst commentary
Shares rose about 3% following the results. In the wake of the report, analysts at Vital Knowledge described the results as fitting into a "could have been worse" category and suggested the report could prompt a modest and brief rebound rally, noting valuation and income characteristics such as a roughly 10x price-to-earnings ratio and a dividend yield above 7%. The analysts also emphasized the underlying weakness in fundamentals, observing that EPS is down more than 30% amid muted top-line trends and ongoing cost and inflation pressures.
Outlook
Management has emphasized ongoing productivity measures and cost savings programs as partial mitigants to inflation and supply chain costs, while retaining its guidance for fiscal 2026. The company’s ability to recover volumes or further offset inflation through productivity and pricing will shape near-term performance.
Note: This report reflects the company-reported figures and statements for the third quarter and the fiscal 2026 guidance as provided by company management and cited analysts.