Campbell's reported fourth quarter fiscal 2026 net sales decreased 8% to $2.1 billion and adjusted EPS decreased 37% to $0.39.
Revenue
$2.14B
vs est. $2.17B
Miss -1.4%
EPS (non-GAAP)
$0.39
vs est. $0.39
Miss -0.5%
Guidance
For fiscal 2027, Campbell's expects net sales to decline 4% to 2% from fiscal 2026, adjusted EBIT to decline 12% to 7%, and adjusted EPS to range from $1.65 to $1.80.
Key takeaways from the release
Gross profit margin decreased 310 basis points to 27.3% in the quarter, and adjusted gross profit margin decreased 190 basis points to 28.6%, driven by cost inflation and other supply chain costs including the impact of tariffs.
Meals & Beverages net sales decreased 4% to $1,187 million with organic net sales up 3%, while Snacks net sales decreased 12% to $950 million with organic net sales down 6%.
Campbell's announced a quarterly dividend of $0.25 per share, a 36% reduction from the prior $0.39 per share, to help accelerate debt reduction.
Full-year cash flow from operations was $1.0 billion, and the company returned $496 million to shareholders, primarily through cash dividends.
Source: SEC Form 8-K (Item 2.02), EX-99.1 press release. Numbers are company-reported; estimates are Finnhub analyst consensus. This is a same-day snapshot — the full AI analysis (MD&A, risks, audit opinion) is generated automatically when the 10-Q/10-K is filed.
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What to Watch in Q3 2026
Drawn from management commentary in the Q2 2026 10-Q:
Revenue Decline Amid Portfolio Optimization
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.
Dramatic Profitability Improvement
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.
Operating Margin Expansion
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.