Key facts
- Campbell's reaffirmed its annual financial outlook.
- Third-quarter adjusted earnings per share were 50 cents, exceeding the 48-cent analyst estimate.
- Net sales decreased 4% year-over-year to $2.37 billion.
- Sales in the meals and beverages unit fell 4%, while the snacks unit saw a 4% decline.
- The company expects fiscal 2026 organic net sales to decline between 1% and 2%.
- Campbell's is scheduled for removal from the S&P 500 index on June 22.
Campbell's Co reaffirmed its annual financial outlook, signaling resilience despite cautious U.S. consumer spending and a 4% year-over-year decline in net sales to $2.37 billion for the third quarter. The company's adjusted earnings per share came in at 50 cents, exceeding the 48-cent analyst estimate, aided by supply-chain optimization and cost-saving programs.
CEO Mick Beekhuizen highlighted a focus on simplifying the business and accelerating productivity. The company's meals and beverages unit saw sales fall 4%, while its snacks business experienced a 4% decline. Campbell's projects fiscal 2026 organic net sales to decrease between 1% and 2%, with adjusted earnings per share expected between $2.15 and $2.25.
Chief Financial Officer Todd Cunfer noted that the lower end of the net sales outlook is a more realistic assumption, and the company expects to offset pressures from higher logistics costs and potential inflation from oil prices near $100 a barrel through cost savings and price hikes. The company also identified its salty snacks business as a key opportunity for growth.
In a separate development, Campbell's is slated for removal from the S&P 500 index before the market opens on June 22. RBC Capital Markets analyst Nik Modi commented that the road ahead likely remains tough, with no clear catalyst for improvement other than stronger, more consistent results.