AI Takeaway
CPB reported a challenging Q2 FY2026 with revenue declining 4.5% YoY to $2.56B and net income falling 16.2% to $145M, reflecting margin compression across the business despite stable operating cash flow.
Revenue
$2.56B
-4.51% YoY
EPS (Basic)
$0.49
-15.52% YoY
Operating Income
$273M
-16.51% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 4.5% YoY to $2.564B in Q2 FY2026 from $2.685B in the prior-year period, indicating volume and/or pricing headwinds weighing on top-line performance.
Source: Source: 10-Q Income Statement
Operating margin contracted approximately 153 basis points YoY to 10.6% from 12.2%, as cost of revenue declined only 1.0% against a 4.5% revenue drop, squeezing gross profitability and flowing through to a 16.5% decline in operating income to $273M.
Source: Source: 10-Q Income Statement & Key Ratios
Net income dropped 16.2% YoY to $145M, with diluted EPS falling 17.2% to $0.48 from $0.58, reflecting both the operating income decline and the impact of lower revenue on overall profitability.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCPB's revenue declined 4.5% YoY to $2.564B in Q2 FY2026, suggesting the company may be facing consumer demand softness or market share erosion in its core food and beverage categories. Sustained volume declines could further pressure profitability if cost structures cannot be adjusted proportionally.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $0.51 versus the $0.57 analyst consensus — a -10.9% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.56B | $2.69B | -4.51% |
Cost of Revenue | $1.85B | $1.87B | -1.02% |
Operating Income | $273M | $327M | -16.51% |
Net Income | $145M | $173M | -16.18% |
EPS (Basic) | $0.49 | $0.58 | -15.52% |
EPS (Diluted) | $0.48 | $0.58 | -17.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $15.35B | $15.91B | -3.53% |
Current Assets | $2.73B | $3.18B | -14.18% |
Total Liabilities | $11.34B | $12B | -5.48% |
Current Liabilities | $2.69B | $3.41B | -21.18% |
Stockholders' Equity | $4B | $3.91B | +2.43% |
Cash & Equivalents | $561M | $829M | -32.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $740M | $737M | +0.41% |
Investing Cash FlowYTD | $-234M | $-175M | -33.71% |
Financing Cash FlowYTD | $-78M | $160M | -148.75% |
Share BuybacksYTD | $26M | $56M | -53.57% |
D&A | $102M | $110M | -7.27% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.6% | 12.2% | -1.53% |
Net Margin | 5.7% | — | — |
ROE | 3.6% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $1.015 | — | — |
Debt to Equity | $2.832 | — | — |
CPB reported Q2 FY2026 revenue of $2.564B, down 4.5% YoY, and net income of $145M, down 16.2% YoY. Diluted EPS came in at $0.48, compared to $0.58 in the prior-year period, reflecting broad-based pressure on both the top and bottom lines.
CPB's revenue fell 4.5% YoY to $2.564B in Q2 FY2026, though the filing text does not specify the exact drivers. The decline likely reflects a combination of volume softness and pricing dynamics in the company's food and beverage segments, as cost of revenue fell only 1.0%, suggesting the revenue drop was not primarily cost-driven.
CPB's operating margin contracted to approximately 10.6% in Q2 FY2026 from 12.2% a year ago, a decline of roughly 153 basis points. This margin compression occurred because cost of revenue declined only 1.0% while revenue fell 4.5%, meaning costs were relatively sticky compared to the revenue drop.
CPB's financial health shows some areas of concern: cash fell 32.3% YoY to $561M, the current ratio is barely above 1.0 at approximately 1.01x, and the debt-to-equity ratio is elevated at 2.83x. On the positive side, year-to-date operating cash flow remained stable at $740M and stockholders' equity grew modestly 2.4% to $4.0B.
Yes, CPB significantly reduced share repurchases in the first half of FY2026, with year-to-date buybacks totaling only $26M compared to $56M in the same period last year, a 53.6% decline. This reduction likely reflects the company's effort to preserve cash amid declining earnings and a tighter liquidity position.