Campbell’s Company (NASDAQ:CPB) saw its shares rise 2.2% in premarket trading after reporting better-than-expected fourth-quarter results, despite challenges from tariffs and inflation.
The company posted adjusted earnings of $0.62 per share for the quarter, exceeding analyst expectations of $0.56. Revenue reached $2.32 billion, slightly below the consensus estimate of $2.33 billion. The quarter included an extra week, contributing roughly 7% to net sales and 10% to adjusted EPS.
Organic net sales fell 3%, largely due to lower volume in both the Meals & Beverages and Snacks segments. The Meals & Beverages division continued to benefit from strong performance of its flagship brands, while the Snacks segment showed modest sequential improvement despite softness in the category.
“Our fiscal 2025 results were slightly ahead of our expectations, driven by our team’s focus on execution in a dynamic operating environment,” said CEO Mick Beekhuizen. “Meals & Beverages benefited from the continued strong in-market performance of our leadership brands, outpacing category growth as consumers continued to cook at home.”
Looking forward, Campbell’s provided fiscal 2026 guidance below analyst expectations, forecasting adjusted EPS of $2.40–$2.55, compared with the consensus of $2.61. The company cited significant input cost pressures, largely due to tariffs, as a primary factor behind the lower outlook.
The company also announced it has raised its cost savings target from $250 million to $375 million by the end of fiscal 2028, aimed at helping offset tariff-related challenges.
For fiscal 2026, Campbell’s anticipates organic net sales growth between -1% and 1%, with adjusted EBIT declining 9%–13%. Approximately two-thirds of the projected decline in adjusted EPS is expected to result from tariff impacts.
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