Campbell Soup Company reported fourth-quarter results that met earnings expectations but fell short on revenue, while its fiscal 2027 guidance disappointed investors, sending shares down 6.2% on Thursday.
The company posted adjusted earnings per share of $0.39 for the quarter, matching analyst forecasts. Revenue totaled $2.1 billion, missing the $2.15 billion estimate and representing an 8% year-over-year decline. Organic net sales fell 1%, primarily due to lower volume and mix. Campbell noted that the prior-year quarter included an extra week that contributed an estimated 7% to sales, amplifying the comparison.
For the full fiscal year 2026, Campbell reported revenue of $9.7 billion, a 5% decrease from the prior year. Adjusted earnings per share declined 27% to $2.17, while adjusted gross profit margin contracted by 210 basis points to 28.5%, driven by cost inflation and supply chain challenges, including tariff impacts. Cash flow from operations amounted to $1.0 billion for the year.
The company’s fiscal 2027 outlook introduced a cautious tone. Adjusted earnings per share are projected between $1.65 and $1.80, with a midpoint of $1.73—9% below the current analyst consensus of $1.90. Net sales are expected to decline by 4% to 2%, while adjusted EBIT is forecast to fall by 12% to 7%. Campbell also announced a 36% reduction in its quarterly dividend to $0.25 per share, aiming to accelerate debt reduction. Additionally, the company unveiled a new cost savings program targeting $500 million in savings by fiscal 2030.
CEO Mick Beekhuizen acknowledged the challenges, stating that fourth-quarter and full-year results reflected top-line softness and margin headwinds driven by inflation. He emphasized that the company is taking decisive action to improve performance.
