Campbell Soup Co. shares fell 6.2% on Thursday after the company reported fourth-quarter results that met analyst forecasts but issued fiscal 2027 guidance that trailed expectations.
The food manufacturer posted adjusted earnings per share of $0.39 for the quarter, matching consensus estimates. Revenue totaled $2.1 billion, missing the $2.15 billion estimate and declining 8% year-over-year. Organic net sales decreased 1%, primarily due to lower volume and unfavorable mix. The prior-year quarter included an extra week that contributed an estimated 7% to sales.
For the full fiscal year 2026, Campbell reported revenue of $9.7 billion, down 5% from the prior period, and adjusted EPS of $2.17, a 27% decline. Adjusted gross profit margin contracted 210 basis points to 28.5%, reflecting cost inflation, supply chain pressures, and tariff impacts. Cash flow from operations amounted to $1.0 billion.
Fiscal 2027 guidance indicated continued challenges. Adjusted EPS was projected at $1.65 to $1.80, with a midpoint of $1.73, trailing the analyst consensus of $1.90 by 9%. Net sales were expected to decline between 4% and 2%, while adjusted EBIT was forecast to fall between 12% and 7%.
In response to the weaker outlook, Campbell announced a 36% reduction in its quarterly dividend to $0.25 per share, down from $0.39, aiming to accelerate debt reduction. The company also introduced a new cost savings program targeting $500 million in savings by fiscal 2030.
CEO Mick Beekhuizen stated, "Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds. Our performance is not where it needs to be, and we are taking decisive action to improve it."
