Campbell's Q2 sales slightly miss estimates, cuts outlook

Campbells Co

11/03/2026 11:23

Overview

U.S. packaged foods maker's fiscal Q2 sales fell 5%, slightly missing analyst expectations

Adjusted EPS for fiscal Q2 missed consensus, declining 31% yr/yr

Company lowered full-year guidance due to weaker snacks performance and storm-related shipment delays

Outlook

Campbell's lowers full-year fiscal 2026 guidance for organic net sales to (2)% to (1)%

Company expects fiscal 2026 adjusted EBIT to decline by (20)% to (17)%

Campbell's sees fiscal 2026 adjusted EPS between $2.15 and $2.25

Result Drivers

SNACKS WEAKNESS - Co said declines in chips and pretzels, supply constraints in fresh bakery and third-party brands, and contract manufacturing weighed on Snacks segment sales and earnings

STORM-RELATED DISRUPTIONS - January storm-related shipment delays and associated supply chain costs reduced net sales by about 1% and adjusted EBIT by about $14 mln in the quarter

COST INFLATION AND TARIFFS - Higher supply chain costs, cost inflation, and tariffs pressured gross margins, partially offset by cost savings and productivity improvements

Company press release: ID:nBw2BFfDCa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$2.60 bln
$2.61 bln (15 Analysts)
Q2 Adjusted EPS
Miss
$0.51
$0.57 (17 Analysts)
Q2 EPS
$0.48
Q2 Gross Margin
28.00%
Q2 Adjusted EBIT
Miss
$282 mln
$305.002 mln (12 Analysts)
Q2 Adjusted Gross Margin
27.70%
Q2 Adjusted Gross Profit
$710 mln
Q2 EBIT
$273 mln
Q2 Gross Profit
$717 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 12 "hold" and 6 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy."

Wall Street's median 12-month price target for Campbell's Co is $29.00, about 17.5% above its March 10 closing price of $24.68

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)