The Campbell’s Company (CPB) Q1 2026 earnings summary

Executive summary

• Net sales declined 3% year-over-year to $2.7 billion, with organic net sales down 1%, mainly due to volume/mix and divestitures, partially offset by favorable pricing.

• Adjusted EBIT fell 11% to $383 million and adjusted EPS dropped 13% to $0.77, reflecting cost inflation, tariffs, and supply chain pressures.

• Leadership brands maintained or grew share for the eighth consecutive quarter, despite a dynamic and competitive environment.

• Snacks and ready-to-serve soups faced headwinds, but four of eight snack leadership brands held or gained share.

• Announced acquisition of 49% interest in La Regina for $286 million to strengthen Rao's brand, with an option to acquire the remaining 51%.

Financial highlights

• Net sales were $2.7 billion, down 3% year-over-year; organic net sales down 1%.

• Adjusted EBIT was $383 million, down 11% year-over-year; adjusted EBIT margin fell to 14.3%.

• Adjusted EPS was $0.77, down 13% year-over-year; basic EPS was $0.65.

• Adjusted gross profit margin declined 150 basis points to 29.9%, mainly due to inflation, tariffs, and supply chain costs.

• Operating cash flow was $224 million; capital expenditures were $127 million; $120 million in dividends paid.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: organic net sales expected flat to up 1%, adjusted EBIT down 13% to 9%, adjusted EPS $2.40–$2.55, down 18% to 12%.

• Divestitures of Pop Secret and noosa expected to reduce net sales by 1% and EPS by ~$0.04 for FY26.

• Company expects to mitigate about 60% of tariff impact through cost savings, supplier collaboration, and selective pricing.

• Capital expenditures for 2026 projected at approximately $370 million; effective tax rate ~24%.

• La Regina acquisition expected to be EPS neutral in fiscal 2026.