Campbell’s Company reported fiscal second‑quarter 2026 results, with net sales of $2.564 billion—a 5% decline year‑over‑year and a 3% drop on an organic basis. Adjusted earnings per share fell to $0.51, missing the consensus estimate of $0.57 and the prior‑quarter EPS of $0.74.
The miss was driven largely by a weaker Snacks segment, which saw a 12% decline in sales, and by January storm‑related shipment disruptions that cut net sales by about 1% and reduced adjusted EPS by roughly $0.04. Cost inflation and tariff headwinds on raw materials further compressed margins, pushing the adjusted gross profit margin down to 27.7% from 30.5% a year earlier.
The Meals & Beverages portfolio, led by the Rao’s brand, continued to perform strongly, with Rao’s trailing‑twelve‑month net sales surpassing $1 billion. In contrast, the Snacks division lagged, with sales falling 12% and contributing to the overall earnings shortfall. Management said the company is working to revitalize the Snacks business through product innovation and improved market execution.
In light of the results, Campbell’s lowered its full‑year 2026 guidance. Adjusted EPS guidance was cut to a $2.15 to $2.25 range from the previous $2.40 to $2.55, and organic net sales guidance was revised to a decline of 2% to 1% for the year. The cut reflects management’s concern about continued weakness in the Snacks segment and the impact of tariff‑related cost pressures.
Investors reacted negatively to the earnings miss and guidance cut, with analysts noting the company’s challenges in the Snacks category and the ongoing margin compression. The market’s response underscored the importance of the company’s ability to turn around the Snacks business and manage cost inflation.
CEO Mick Beekhuizen highlighted that while the Meals & Beverages portfolio delivered in‑market consumption growth, the overall results fell short of expectations due to weaker Snacks performance and storm‑related shipment delays. He reiterated the company’s commitment to lowering costs and strengthening its core brands.
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