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Campbell's Maintains Fiscal 2026 Outlook Following Mixed Third-Quarter Results

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Campbell's Maintains Fiscal 2026 Outlook Following Mixed Third-Quarter Results

Campbell's (CPB) reiterated its full-year outlook on Monday as the packaged food company reported fiscal third-quarter earnings above market estimates, although sales fell short of expectations.

The company continues to project adjusted earnings to come in between $2.15 and $2.25 per share for fiscal 2026, while the current consensus on FactSet is for $2.17. Organic sales are still pegged to decline by 1% to 2% for the fiscal year, Campbell's said.

For the three-month period ended May 3, the company's adjusted EPS dropped to $0.50 from $0.73 the year before, but topped the Street's view for $0.48. The stock gained 2.3% in the most recent premarket activity.

Sales declined 4% to $2.37 billion, missing the average analyst estimate of $2.38 billion. On an organic basis, sales moved down by the same percentage, reflecting lower volume and mix.

"Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds," Chief Executive Mick Beekhuizen said in a statement. "Across the company, we are focused on simplifying the business, accelerating productivity and cost savings, and creating fuel to invest behind our strongest opportunities."

Revenue in the meals and beverages and snacks segments decreased 4% each to $1.43 billion and $940 million, respectively, according to the company.

The company's brands in the meals and beverages division continued to benefit from durable at-home cooking trends, Beekhuizen said. Campbell's is also seeing "early signs of progress" in the snacks business and is taking additional measures to strengthen its salty snacks portfolio, the CEO added.

The company saved roughly $20 million during the third quarter, taking its overall cost savings to $200 million in reference to its fiscal 2028 objective of $375 million. It aims to use these savings to help offset tariffs and wider inflationary headwinds.

"We are moving with urgency and remain confident in the long-term strength of our portfolio and our ability to create shareholder value," according to Beekhuizen.

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