Campbell Soup’s shares fell 7.7% in pre-market trading after the company reported weaker-than-expected quarterly results and announced a dividend reset alongside a new cost-cutting initiative.
The company posted net sales of $2.1 billion for the fourth quarter of fiscal 2026, an 8% decline from the prior-year period and below the $2.15 billion consensus estimate. Adjusted earnings per share dropped 37% to $0.39, reflecting broader pressures in the packaged food sector.
In response to the results, Campbell unveiled a $500 million cost savings program aimed at fiscal 2030 and reset its dividend to accelerate debt reduction. The move follows analyst downgrades, including a Sell rating from Barclays and a price target reduction to $22 from $23 by Evercore ISI on August 31.
Options market activity showed put volume exceeding call volume by more than eight times ahead of the earnings release. Shares traded near the lower end of their 52-week range of $19.55 to $34.17.
The broader market showed little movement, with the S&P 500 essentially flat and the Nasdaq modestly lower. Campbell cited ongoing challenges in its Snacks segment, volume weakness, private-label competition, and tariff-related cost inflation as key headwinds in fiscal 2026.
Chief Executive Officer Mick Beekhuizen acknowledged that the company’s performance remains below expectations, emphasizing the need for structural improvements.
