The Campbell’s Company (CPB) Q2 2026 Prepared remarks earnings summary

Executive summary

• Net sales declined 5% to $2.6 billion, with organic sales down 3% year-over-year, mainly due to lower volume/mix, weak Snacks results, and storm-related shipment delays, shifting some volume into Q3.

• Meals & Beverages showed strong in-market demand, especially for Rao's, which surpassed $1 billion in trailing twelve-month net sales and grew 14.5% in Q2.

• Snacks recovery lagged, with sequential improvement in Goldfish but ongoing challenges in Fresh Bakery and Salty Snacks due to competitive pressure and supply constraints.

• Accelerated cost savings initiatives, including $100 million in near-term overhead reductions, are underway to support margins and reinvestment, with $180 million achieved toward a $375 million target by 2028.

• FY26 guidance was revised downward, reflecting delayed Snacks recovery, incremental trade investments, and a more cautious outlook.

Financial highlights

• Quarterly net sales declined 5% year-over-year to $2.564 billion; organic net sales down 3%.

• Adjusted EBIT dropped 24% year-over-year to $282 million, with margin falling to 11.0% from 13.9%.

• Adjusted EPS was $0.51, down 31% from the prior year; reported EPS was $0.48.

• Adjusted gross profit margin decreased 270 basis points to 27.7%, with inflation and tariffs as primary drivers.

• Divestitures, including Pop Secret and noosa, reduced reported net sales by about one point.

Outlook and guidance

• Full-year fiscal 2026 guidance lowered: organic net sales expected to decline 2% to 1%, adjusted EBIT down 20% to 17%, and adjusted EPS in the range of $2.15 to $2.25 (down 26% to 23% year-over-year).

• Q3 growth profile expected to be consistent with Q2.

• Guidance excludes potential impacts from the Iran conflict and the 53rd week in fiscal 2025.

• Cost savings initiatives are expected to generate $375 million in annual ongoing savings by 2028.