The Campbell's Company (CPB) Earnings & Analysis

Latest quarter

Campbell’s reported Q4 FY2026 revenue of $2.1 billion, below the $2.2 billion consensus. Adjusted earnings per share of $0.39 also missed the $0.40 consensus.

Revenue fell from $2.3 billion a year earlier, while diluted earnings per share moved to −$0.23 from $0.48. Campbell’s reported that Snacks operating earnings fell 34% in the quarter.

The company’s filing attributed the full-year sales decline in Meals & Beverages partly to lower sales of U.S. soup, V8 beverages and several sauces, excluding the effects of the extra week and a divestiture. It said Snacks sales fell for the year amid declines in chips, crackers and other products, partly offset by gains in Pepperidge Farm cookies.

Quarterly gross margin fell to 27.3% from 30.4%, and operating margin declined to 0.19% from 11.6%. Campbell’s reported free cash flow of $136.0 million for the quarter, compared with $129.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Mick Beekhuizen said the Snacks turnaround starts with a leadership team assembled over the preceding months. He outlined three priorities: returning to core consumers and brand support, finding savings to fund brands, and improving execution so products are on shelves when shoppers want them.

Beekhuizen pointed to Goldfish’s focus on households with children and planned brand campaigns for Goldfish and Pepperidge Farm. He also said fresh bakery had improved sequentially in Q4, although more work remained. CFO Todd Cunfer said current Snacks consumption trends were below management’s expectations and forecast a high-single-digit sales decline in the first quarter.

Asked whether Snacks consumption could turn positive by year-end, Beekhuizen said the company was not anticipating that outcome but expected continued modest progress. On other products, he said Campbell’s was focusing Snack Factory on the deli aisle and that actions to improve the chips business’s competitive position would take time.

Cunfer said first-quarter pricing investments were concentrated in meals, including slotting fees for soup and sauce introductions and holiday promotions. He expected negative price realization in Q1, followed by contributions from price increases beginning in Q2. He said the increases covered about 60% of the portfolio across meals and snacks.

On costs, Cunfer described a $500 million savings program running from fiscal 2027 through fiscal 2030, including procurement, headcount reductions and supply-chain network changes. He said some savings would come from an earlier program and that network optimization would take longer.

Cunfer expected first-quarter gross margin to decline significantly as inflation and promotional spending precede pricing benefits, with savings weighted toward the second half. Asked about the variables behind the outlook, he identified second-half inflation and the timing of the Snacks recovery.

Guidance

On its prior call, Campbell’s expected FY2026 net sales near the lower end of its −2.00% to −1.00% range. For FY2027, the company expects net sales to change −4.00% to −2.00%.