AI Takeaway
CPB delivered a strong Q3 FY2026 with net income surging 87.9% YoY to $124M and operating margin expanding 360 bps to 10.1%, even as revenue declined 4.4% to $2.37B.
Revenue
$2.37B
-4.40% YoY
EPS (Basic)
$0.42
++90.91% YoY
Operating Income
$239M
++48.45% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Q3 FY2026 revenue fell 4.4% YoY to $2.37B from $2.48B, suggesting volume softness or deliberate portfolio pruning, though the company managed cost of revenue down 1.8% to $1.72B, partially cushioning the top-line pressure.
Source: Source: 10-Q Income Statement
Operating income jumped 48.4% YoY to $239M, and net income nearly doubled (+87.9%) to $124M, indicating significant operating leverage and/or reduced below-the-line charges such as restructuring or impairment costs relative to the prior year period.
Source: Source: 10-Q Income Statement
Operating margin expanded approximately 360 basis points YoY to 10.1% from 6.5%, reflecting disciplined cost management and a more favorable expense structure despite lower revenues.
Source: Source: 10-Q Key Ratios
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Upgrade to unlockCPB's debt-to-equity ratio stands at a elevated 2.76x, meaning total liabilities of $11.1B significantly exceed stockholders' equity of $4.0B. This level of leverage constrains financial flexibility and increases vulnerability to interest rate changes or earnings shortfalls.
Source: Source: 10-Q Balance Sheet & Key Ratios
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Upgrade to unlockReported EPS of $0.50 versus the $0.48 analyst consensus — a +3.5% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.37B | $2.48B | -4.40% |
Cost of Revenue | $1.72B | $1.75B | -1.77% |
Operating Income | $239M | $161M | +48.45% |
Net Income | $124M | $66M | +87.88% |
EPS (Basic) | $0.42 | $0.22 | +90.91% |
EPS (Diluted) | $0.41 | $0.22 | +86.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $15.14B | $14.83B | +2.12% |
Current Assets | $2.56B | $2.23B | +14.96% |
Total Liabilities | $11.11B | $10.96B | +1.42% |
Current Liabilities | $2.95B | $2.85B | +3.69% |
Stockholders' Equity | $4.03B | $3.87B | +4.08% |
Cash & Equivalents | $402M | $143M | +181.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $839M | $872M | -3.78% |
Investing Cash FlowYTD | $-298M | $-80M | -272.50% |
Financing Cash FlowYTD | $-272M | $-755M | +63.97% |
Share BuybacksYTD | $26M | $60M | -56.67% |
D&A | $105M | $109M | -3.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.1% | 6.5% | +3.60% |
Net Margin | 5.2% | — | — |
ROE | 3.1% | — | — |
ROA | 0.8% | — | — |
Current Ratio | $0.866 | — | — |
Debt to Equity | $2.759 | — | — |
CPB reported Q3 FY2026 net income of $124M, up 87.9% YoY, with diluted EPS of $0.41 versus $0.22 in the prior year period. Revenue declined 4.4% to $2.37B, but strong cost management drove operating margin expansion to 10.1% from 6.5%.
CPB's revenue declined 4.4% YoY to $2.37B in Q3 FY2026, likely reflecting volume softness, consumer trade-down pressures, or portfolio divestitures. Despite the top-line decline, cost of revenue also fell 1.8% to $1.72B, helping preserve profitability.
CPB's operating income surged 48.4% to $239M and net income nearly doubled to $124M in Q3 FY2026, driven by significant operating expense reductions and a more favorable below-the-line cost structure compared to the prior year. Operating margin expanded approximately 360 basis points to 10.1%.
CPB's balance sheet shows $15.1B in total assets and a high debt-to-equity ratio of 2.76x, reflecting significant leverage with $11.1B in total liabilities. The current ratio of 0.87 indicates negative working capital, though cash surged 181% YoY to $402M and YTD operating cash flow remains solid at $839M.
CPB's fiscal year-to-date share buybacks totaled $26M through Q3 FY2026, down 56.7% from $60M in the same period last year, suggesting the company has prioritized other uses of capital such as debt management or increased capital investment over aggressive share repurchases.