Campbell Soup Co. reported fourth-quarter fiscal 2026 adjusted earnings per share of $0.39, matching analyst expectations but down 37% from $0.62 in the prior-year period. Revenue totaled $2.1 billion, missing the $2.15 billion forecast, as total consumption declined 2.2% and organic net sales fell 1%. Reported net sales dropped 8%, partly due to the absence of a 53rd week in the prior year.
Adjusted earnings before interest and taxes fell 25%, while the adjusted gross profit margin contracted 190 basis points to 28.6%. Raw material, packaging and logistics inflation weighed on margins by 530 basis points, partially offset by $380 million in cost savings and supply chain productivity improvements. Net price realization contributed a 30-basis-point benefit.
Shares fell 6.32% in premarket trading to $22.28, near the 52-week low of $19.55. For the full fiscal year, net cash flows from operations totaled $1.039 billion, down from $1.131 billion the prior year, while capital expenditures were reduced to $361 million from $426 million. Total shareholder returns via dividends and limited share repurchases amounted to $496 million, and the net debt-to-EBITDA ratio stood at 4.3x, with a target reduction toward approximately 3.0x.
Segment performance showed a divergence between meals and snacks. Meals and Beverages organic net sales grew 3%, driven by semi-scratch cooking trends, with broth consumption up 10.7% and condensed soups down 1.4%. The Rao’s premium Italian sauce brand, in which Campbell acquired a 49% stake, delivered 10% consumption growth in Q4 and 11% for the full fiscal year, achieving $1 billion in sales and contributing two-thirds of category growth. Snacks organic net sales declined 6%, with operating earnings down 34% and dollar consumption falling 5.1%.
For fiscal 2027, Campbell expects net sales to decline 2% to 4%, adjusted EBIT to fall 7% to 12%, and adjusted EPS to range from $1.65 to $1.80, a 17% to 24% decrease from fiscal 2026. Management cited raw material and packaging inflation of 5% to 6%, double-digit logistics inflation, and productivity improvements above 4% of cost of products sold as key assumptions. The company plans to reduce total operating expenses slightly, including a $50 million impact from resetting incentive compensation plans, and maintain disciplined capital spending near $300 million. An enterprise-wide cost reduction target of over $100 million is set for FY27 as part of a broader $500 million savings program.
Chief Executive Officer Mick Beekhuizen emphasized the need for decisive action, stating that transforming Campbell’s requires a head-on approach rather than waiting for market conditions to improve.
