The Campbell’s Company (CPB) Q3 2026 Prepared remarks earnings summary

Executive summary

• Organic net sales declined 4% year-over-year to $2.37 billion, with adjusted EBIT down 24% to $274 million and adjusted EPS at $0.50, a 32% decrease versus prior year.

• Performance was pressured by top-line softness, inflation-driven margin headwinds, and volume/mix declines, especially in snacks and soup.

• Investments continue in core brands, innovation, and cost-saving initiatives to drive future growth.

• Cooking-at-home trends remain a durable growth driver, while snacks are showing early signs of improvement.

• Reaffirmed FY26 outlook despite ongoing challenges from inflation, supply chain, and competitive pressures.

Financial highlights

• Adjusted gross margin was 27.7%, down 240 basis points year-over-year; gross profit for the quarter was $650 million.

• Adjusted marketing and selling expenses rose 2% to $211 million, or 8.9% of net sales.

• Operating cash flow year-to-date was $839 million; capital expenditures totaled $297 million.

• Net debt to trailing 12-month adjusted EBITDA leverage ratio stood at 4.0x; cash and cash equivalents at quarter-end were $402 million.

• Net earnings attributable to shareholders were $124 million for the quarter.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: organic net sales expected to decline 1–2%, adjusted EBIT down 17–20%, and adjusted EPS of $2.15–$2.25.

• Q4 will face a headwind from lapping an extra week last year, impacting net sales, EBIT, and EPS.

• La Regina acquisition expected to be neutral to adjusted EPS in fiscal 2026; diluted share count to rise to ~306 million.

• Anticipates 2–3% incremental inflation in fiscal 2027 if oil prices remain elevated.

• Ongoing cost savings initiatives targeting $375 million annual savings by 2028.