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, and storm-related shipment delays; pricing was neutral.

• Meals & Beverages showed resilience, supported by at-home cooking trends and strong Rao's growth, while Snacks underperformed due to operational disruptions and competitive pressure.

• Accelerated cost savings initiatives were implemented, including $100 million in near-term overhead reductions and $20 million in Q2, with a $375 million target by 2028.

• Divestitures of Pop Secret and noosa yoghurt were completed, and a pending acquisition of 49% of La Regina was announced.

• FY26 guidance was revised downward, reflecting delayed Snacks recovery, incremental trade investments, and ongoing cost headwinds.

Financial highlights

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

• Adjusted EBIT dropped 24% to $282 million; adjusted EBIT margin fell to 11.0% from 13.9%.

• Adjusted EPS was $0.51, down 31% year-over-year; reported EPS was $0.48, down 17%.

• Gross profit margin declined to 28.0% from 30.5%; adjusted gross margin fell 270 bps to 27.7% due to cost inflation and tariffs.

• Cash flow from operations for the first half was $740 million; $263 million returned to shareholders via dividends and buybacks.

Outlook and guidance

• FY26 organic net sales expected to decline 2% to 1%; adjusted EBIT down 20% to 17%; adjusted EPS $2.15–$2.25, down 26% to 23% year-over-year.

• Guidance excludes the impact of the 53rd week in fiscal 2025 and recent divestitures.

• The company expects to generate annual ongoing savings of approximately $375 million by the end of 2028.

• Guidance does not reflect potential impacts from the Iran conflict or other geopolitical events.

• Capital expenditures projected at ~3.7% of net sales.