Campbell’s shares are down 7% before the bell on Thursday after the company released its Q4 2026 results.
The company’s Q4 earnings included:
- Net Sales decreased 8% to $2.1 billion and decreased 1% on an organic basis.
- Earnings Before Interest and Taxes (EBIT) decreased to $4 million; Adjusted EBIT decreased 25% to $242 million, including an estimated 8% impact from the extra week in the prior year period.
- Earnings Per Share (EPS) decreased to $(0.23); Adjusted EPS decreased 37% to $0.39, including an estimated $0.06 per share, or 7%, impact from the extra week in the prior year period.
Full year:
- Cash flow from operations was $1.0 billion.
Net Sales decreased 5% to $9.7 billion and decreased 2% on an organic basis.
EBIT decreased to $852 million. Adjusted EBIT decreased 21% to $1.2 billion, including an estimated 2% impact from the extra week in the prior year.
EPS decreased to $1.31. Adjusted EPS decreased 27% to $2.17, including an estimated $0.06 per share, or 2%, impact from the extra week in the prior year.
Volumes in the company’s snacks segment declined by 6%, while prices increased by 1%. In the meals and beverages segment, where prices stayed the same, volumes grew by 3%.
In the fourth quarter, Campbell’s delivered approximately $25 million in savings, bringing total cost savings to approximately $225 million under the company’s $375 million savings program.
Mick Beekhuizen, Campbell’s CEO told investors: “Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds. Our performance is not where it needs to be, and we are taking decisive action to improve it. We are increasing our focus on the consumer, sharpening execution, reducing costs to support investment in our brands, and strengthening our balance sheet, including resetting our dividend. We enter fiscal 2027 with leading brands including Campbell’s, Rao’s, Goldfish and Pepperidge Farm, a resilient Meals & Beverages division benefiting from durable at-home cooking trends, and actions underway to strengthen Snacks. The steps we are taking are designed to improve growth, expand margins, reduce leverage, and position Campbell’s for sustainable long-term value creation.”
Campbell’s forecasts fiscal 2027 net sales to decline by 2% to 4%. However, the company expects fiscal 2027 adjusted profit per share to be $1.65 to $1.80, compared with analysts’ estimate of $1.86 per share.
The company also announced that starting in fiscal 2027, Campbell’s will launch a new program aiming to save a total of $500 million by fiscal 2030. Some actions are already underway, including plant closures and recent workforce reductions.
Campbell’s sales downturn comes as lower-income consumers shift toward cheaper value brands and store-label products.
By CEO NA Editorial Staff
