Sep 3, 2026, 7:17 AM ETConsumer Defensive

Campbell's — Fourth Quarter Fiscal 2026 Earnings Summary

CPBCAMPBELL'S CO

Financial Performance

Net sales decreased 8% to $2.1 billion in Q4 and 5% to $9.7 billion for the full year; organic sales decreased 1% in Q4 and 2% for the full year.
Earnings Before Interest and Taxes (EBIT) dropped to $4 million in Q4 (from $269 million) and $852 million for the full year (from $1.1 billion).
Adjusted EBIT decreased 25% to $242 million in Q4 and 21% to $1.2 billion for the full year, impacted by an extra week in the prior year period.
Diluted EPS decreased to $(0.23) in Q4 and $1.31 for the full year; Adjusted EPS fell 37% to $0.39 in Q4 and 27% to $2.17 for the full year.
Gross profit margin decreased 310 basis points to 27.3% in Q4 and 230 basis points to 28.1% for the full year.
Cash flow from operations was $1.0 billion for the full year, down from $1.1 billion in the prior year.
Capital expenditures were $361 million for the full year, down from $426 million.
Total liabilities increased to $11.492 billion as of August 2, 2026, from $10.992 billion in the prior year; Long-term debt stood at $6.160 billion.
Cash and cash equivalents increased to $394 million as of August 2, 2026, from $132 million in the prior year.

Full-year fiscal 2027 guidance forecasts net sales decline of 4% to 2% and organic net sales decline of 4% to 2%.
Adjusted EBIT for fiscal 2027 is projected to decrease 12% to 7%.
Adjusted EPS for fiscal 2027 is projected to range from $1.65 to $1.80, a decrease of 24% to 17% from prior year.
The La Regina acquisition is expected to contribute modestly to net sales and be neutral to adjusted EPS in fiscal 2027.
Guidance assumes no new tariffs or changes to existing tariff rates and reflects an environment of volatile external conditions and elevated inflation.

Meals & Beverages: Net sales decreased 4% in Q4 (organic +3%) and 4% for the full year (organic -1%); operating earnings decreased 12% in Q4 and 14% for the full year.
Snacks: Net sales decreased 12% in Q4 (organic -6%) and 6% for the full year (organic -4%); operating earnings decreased 34% in Q4 and 28% for the full year.
Acquisitions: The La Regina acquisition was completed on May 4, 2026, with financials fully consolidated into results.
Divestitures: The Pop Secret popcorn business was sold in August 2024, and the noosa yoghurt business was sold in February 2025.
Segment Realignment: Beginning fiscal 2027, the frozen bakery business will shift from the Snacks division to the Meals & Beverages division.

Performance was driven by unfavorable volume/mix, particularly in the salty portfolio and third-party partner brands within Snacks.
Sales of U.S. soup decreased 8% in Q4, primarily due to lapping the extra week in the prior year period.
The company faces headwinds from cost inflation, supply chain costs, and tariffs, partially offset by supply chain productivity improvements.

Significant impairment charges of $117 million were recorded in Q4 for the Cape Cod and Kettle Brand trademarks.
Corporate expenses increased to $226 million in Q4 from $83 million in the prior year, largely due to impairment charges.
The company cites risks related to commodity price volatility, geopolitical conflicts, tariff actions, and supply chain disruptions.

CEO Mick Beekhuizen stated results reflect "top-line softness and inflation-driven margin headwinds" and acknowledged performance is "not where it needs to be."
Management emphasized taking "decisive action" to improve growth, expand margins, and reduce leverage.
Strategic focus areas include sharpening execution, reducing costs to support brand investment, and strengthening the balance sheet.

Dividend Reset: The Board approved a quarterly dividend of $0.25 per share ($1.00 annualized), a 36% reduction from the prior $0.39 per share, to accelerate debt reduction.
Cost Savings Program: A new enterprise-wide program targets $500 million in cost savings by fiscal 2030, building on $225 million achieved under the prior $375 million program.
Shareholder Returns: The company returned $496 million to shareholders in fiscal 2026, primarily through cash dividends.
La Regina Transaction: The acquisition involved $286 million in aggregate consideration, with $146 million paid in cash at closing and $140 million payable at the company's discretion in May 2027.