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

Executive summary

• Net sales declined 5% year-over-year to $2.56 billion, primarily due to lower volume/mix, divestitures, and storm-related shipment delays, with Snacks segment underperforming and Meals & Beverages showing relative strength supported by at-home cooking trends.

• Gross profit margin fell to 28.0% from 30.5%, pressured by cost inflation, tariffs, and unfavorable volume/mix, partially offset by productivity improvements and favorable pricing.

• Adjusted EBIT dropped 24% to $282 million and adjusted EPS decreased 31% to $0.51, with storm-related disruptions negatively impacting results by about 1% of sales and $14 million in adjusted EBIT.

• Cost savings initiatives and productivity improvements are being accelerated, with a target of $375 million in annual ongoing savings by 2028.

• Recent developments include the pending acquisition of a 49% stake in La Regina for $286 million, with options for the remaining 51%, and completed divestitures of Pop Secret and noosa businesses.

Financial highlights

• Q2 FY26 net sales declined 5% to $2.56 billion; organic net sales down 3%.

• Gross profit for the quarter was $717 million, with a margin of 28.0%; adjusted EBIT margin was 11.0%.

• Adjusted EPS for the quarter was $0.51, down from $0.74 year-over-year.

• Operating cash flow for the six months was $740 million; capital expenditures were $227 million YTD.

• Dividend payments totaled $237 million for the six months; $26 million in share repurchases; total debt at quarter-end was $7.1 billion.

Outlook and guidance

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

• Management anticipates continued supply chain productivity and cost savings initiatives to offset inflation and tariff pressures, with inflation expected to moderate through 2026.

• Consumer trends are expected to evolve, with volumes projected to improve over time, though shifting behaviors may continue to negatively impact volumes in 2026.

• Positive net price realization expected in H2, though less than prior periods due to investments in broth and Rao's.

• Cost savings initiatives are expected to generate annual ongoing savings of approximately $375 million by the end of 2028.