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Central Pacific Financial Corp. CPB NYSE: CPF reported second-quarter 2026 net income of $20.8 million, or $0.80 per diluted share, as the Hawaii-based bank benefited from higher earning-asset balances and yields, stable funding costs and a modest expansion in net interest margin.

Diluted earnings per share increased 19% from the year-earlier quarter. Return on average assets was 1.12%, while return on average equity was 13.94%, according to Executive Vice President and Chief Financial Officer Dayna Matsumoto.

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Chairman, President and Chief Executive Officer Arnold Martines said the company maintained profitability while managing its balance sheet with discipline. He said the bank expanded average earning assets, preserved a stable core funding base and continued investing in talent, technology, automation and data capabilities while managing expenses.

Margin Expansion and Full-Year Outlook Net interest income totaled $62.8 million during the second quarter, while net interest margin increased four basis points from the prior quarter to 3.57%. Matsumoto attributed the result to growth in average loans and securities, higher earning-asset yields and stable funding costs.

The company expects net interest margin to remain relatively steady or rise slightly in the second half of 2026. While the benefit from repricing existing assets remains favorable, Matsumoto said that benefit has moderated. CPB expects deposit costs to remain fairly steady if the Federal Reserve keeps rates unchanged.

Management reaffirmed guidance for full-year net interest income growth of 4% to 6% over the prior year. Matsumoto said the balance sheet is relatively neutral to slightly asset sensitive and is positioned to benefit from a potential Federal Reserve rate increase, although management does not expect such an increase to have a significant impact this year.

During the question-and-answer session, Matsumoto said loan pricing remains competitive in Hawaii, with some spread compression, while deposit pricing has remained rational. She said the company expects its margin to remain in the “high 350s” as it balances profitability with growth opportunities.

Loans, Deposits and Capital Returns Total loans ended the quarter relatively unchanged at $5.3 billion, although average loan balances rose $33 million from the first quarter. Vice Chair and Chief Operating Officer David Morimoto said second-quarter loan growth was affected by several closings shifting into the third quarter and expected commercial real estate loan payoffs.

Average loan yield increased to 4.96% from 4.93% in the prior quarter, primarily reflecting higher yields on new loan production relative to runoff loans. Morimoto said the bank originated nearly $70 million of new construction loans during the quarter, mainly multifamily construction loans on the mainland, with floating rates at Secured Overnight Financing Rate plus spreads in the low 200-basis-point range.

Management expects stronger loan growth in the second half than in the first half, supported by commercial construction funding activity, a commercial lending pipeline and initiatives intended to slow runoff in its Hawaii retail portfolio. CPB continues to expect both loan and deposit growth in the low-single-digit range for the full year.

Total deposits were largely unchanged at $6.7 billion, with core deposits representing more than 90% of the total. Morimoto said noninterest-bearing and relationship-based accounts continued to grow. Total deposit costs held steady at 90 basis points, and the company reported deposit growth of nearly $90 million year to date.

Morimoto said deposit competition in Hawaii has remained consistent and more rational than on the mainland, where banks face a larger number of competitors. Matsumoto said the company’s 79% loan-to-deposit ratio at June 30 was at the low end of its typical 80% to 85% target range, leaving room to support expected lending growth.

CPB paid a $0.29-per-share second-quarter dividend, and its board declared a $0.30-per-share third-quarter dividend, representing a 3.4% increase. The company also repurchased about 322,000 shares for $11.3 million during the quarter, leaving $33.2 million available under its repurchase authorization at quarter-end.

Matsumoto said management generally expects capital returns through dividends and repurchases to continue at a similar pace, though repurchase levels will remain dependent on loan growth, market conditions, risk and valuation.

Credit Trends and Expenses Vice Chair Ralph Mesick said asset quality remained strong. Nonperforming assets totaled $16.5 million, or 22 basis points of total assets, and net charge-offs were 20 basis points of average loans. Past-due trends were stable, and management said it was not seeing broad-based weakness across the loan portfolio.

Criticized loans increased to 234 basis points of total loans, driven primarily by a small number of Hawaii-based credits. Mesick said the credits are well collateralized and actively managed. He discussed the largest downgraded credit, a $20 million Hawaii real estate loan involving an ownership dispute and financial difficulties for the principal guarantor. The loan had debt-service coverage of about 1.27 times and a loan-to-value ratio of 57%, and Mesick said management does not see loss content in the loan.

Provision expense was $4.4 million, including $3.3 million added to the allowance for credit losses and $1.1 million added to the reserve for unfunded commitments. Management said the increase primarily reflected more conservative economic assumptions and commitment growth rather than portfolio deterioration. The allowance rose to $60.6 million, or 1.14% of loans, from 1.13% in the first quarter.

Other operating income increased $3 million sequentially to $14.6 million, largely due to bank-owned life insurance income tied to market performance. Other operating expense rose $2.5 million to $46.2 million, primarily because of higher deferred compensation expense also associated with market performance.

The company maintained its forecast for 2.5% to 3.5% full-year growth in other operating expenses, though Matsumoto said its latest forecast was near the lower end of that range. She said second-half expenses will include costs associated with a customer relationship management system, a new branch system and data platforms. Management expects deferred compensation expense to normalize in the second half.

Martines said Hawaii’s economy remains resilient, citing steady visitor activity, increases in visitors from the U.S. East Coast and Japan, 2.5% unemployment, increased construction employment and rising government contract awards. He added that the company continues to monitor geopolitical conflict, oil prices and inflation, but has not observed significant impacts on customers.

About CPB (NYSE:CPF)Charoen Pokphand Foods Public Company Limited NYSE: CPF is a Thailand‐based integrated agro‐industrial and food conglomerate. Headquartered in Bangkok, the company is a subsidiary of the Charoen Pokphand Group and has grown into one of the world's leading producers of livestock feed, meat and seafood products. CPF's businesses span animal feed milling, animal breeding and hatchery operations, meat and seafood processing, and the distribution of fresh, frozen and value‐added food products.

CPF's product portfolio includes poultry, swine and aquaculture feed; fresh and frozen chicken and pork; shrimp and other seafood; as well as ready‐to‐eat and ready‐to‐cook food items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Campbell's (CPB 2.37%) isn't merely a red-and-white-label soup business any longer. The company's diversified portfolio now covers snacks, sauces, and various meal brands.

Campbell's has also made significant investments in artificial intelligence, data, and insights to better understand shoppers' shifting habits and preferences. The company's stock is deeply undervalued and down 20% this year. Investors should take notice.

Today's Change

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Campbell's is refocusing Campbell's management is being strategic in its acquisitions to boost its business while cutting costs to protect delicate margins. Most notably, Campbell's purchased the increasingly popular pasta sauce brand Rao's in 2024 for $2.7 billion. A wide-ranging portfolio and technological advancements could set the food business up for substantial growth in the coming years.

Image source: Getty Images.

This isn't a plan without real challenges. Consumers are finicky, and there is real pressure on margins throughout the industry. Still, Campbell's is taking the corrective measures needed to succeed going forward. Net sales in the third quarter of fiscal 2026 decreased 4%. There may still be some short-term pain ahead, but I like the company's approach to gaining forward momentum.

Campbell's is currently trading slightly above $20 per share. Its forward and trailing P/E ratios are about 11, and PEG is below 1. These metrics suggest Campbell's is an attractive buy at the moment if the company can successfully execute its strategic plan to control costs and grow its portfolio. The company also pays a quarterly cash dividend of $0.39 per share, yielding over 7% at the current price.

There will continue to be short-term headwinds for Campbell's as consumers' wallets are strained, but the approach the company is taking to preserve its future as an iconic consumer staple is the right one.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Campbell's. The Motley Fool has a disclosure policy.

A month has gone by since the last earnings report for Campbell's (CPB - Free Report) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Campbell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Campbell's Q3 Earnings Surpass Estimates Despite Sales WeaknessThe Campbell's Company reported third-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, while sales missed expectations. Both earnings and revenues declined year over year, reflecting continued top-line softness, inflationary pressures and tariff-related costs. 

Adjusted earnings per share (EPS) were 50 cents, down 32% year over year due to lower adjusted earnings before interest and taxes (EBIT). However, the bottom line surpassed the Zacks Consensus Estimate of 48 cents.Net sales of $2,366 million decreased 4% year over year and missed the Zacks Consensus Estimate of $2,387 million. Organic net sales also declined 4%, primarily due to lower volume and unfavorable product mix, partially offset by positive net price realization. The quarter included a modest headwind from the noosa divestiture.

Adjusted gross profit declined 12% to $656 million. Adjusted gross margin contracted 240 basis points (bps) to 27.7%, mainly due to cost inflation, tariffs and other supply-chain costs. These pressures were partly offset by supply-chain productivity improvements, cost-savings initiatives and favorable pricing. Tariffs alone represented a gross margin headwind of about 310 bps during the quarter. Adjusted marketing and selling expenses increased 2% to $211 million, reflecting higher brand-building investments and marketing spending. Adjusted administrative expenses decreased 1% to $149 million due to savings initiatives and lower incentive compensation, partly offset by higher general administrative costs. Adjusted EBIT declined 24% to $274 million, primarily due to lower adjusted gross profit and higher marketing investments. Adjusted EBIT margin contracted 300 bps to 11.6%.

Decoding CPB’s Segmental PerformanceMeals & Beverages: Net sales decreased 4% to $1,426 million. Organic net sales also declined 4% due to an unfavorable volume/mix of 5%, partly offset by 1% favorable net price realization. The segment faced a difficult comparison against strong soup demand in the prior year and a roughly 1% headwind related to shipment timing associated with the Sovos Brands ERP implementation and prior winter-storm delays. U.S. soup sales plunged 8%, though the company continued to benefit from resilient at-home cooking trends and strong performances from Rao’s, Swanson and Pacific Foods. Segment operating earnings fell 16% to $213 million due to inflation, tariffs and lower volume.

Snacks: Net sales declined 4% to $940 million, with organic net sales also down 4%. Volume/mix reduced sales by 6%, partially offset by 2% favorable price realization. Weakness stemmed primarily from salty snacks, crackers, fresh bakery products, third-party partner brands and contract manufacturing sales. Segment operating earnings decreased 32% to $95 million due to elevated inflation, tariffs, supply-chain costs and lower volumes, partly offset by productivity gains, pricing actions and cost savings. Management noted encouraging signs in Snacks, particularly in Goldfish, where core products remained stable for a second consecutive quarter, and in Pepperidge Farm fresh bakery, where service levels and in-stock performance improved. The company has also begun implementing a simplification strategy across its salty snacks portfolio to strengthen performance and profitability.

CPB: Strategic Highlights and Brand PerformanceCampbell’s continued to benefit from durable at-home cooking trends, which supported growth in key cooking-oriented brands. Rao’s remained a standout performer, delivering 15% consumption growth during the quarter, with pasta sauce consumption increasing 13%. Rao’s generated approximately 75% of the total Italian sauce category growth and maintained its leadership position in dollar share across all regions. Subsequent to the end of the quarter, Campbell’s completed its acquisition of a 49% stake in La Regina on May 4, 2026, strengthening its commitment to the Rao’s platform and long-term growth strategy. The company also announced that all leadership brands have successfully transitioned to natural colors ahead of schedule, with the remaining regional Snacks brands expected to complete the transition by July 2026.

CPB’s Other Financial MetricsAt the end of the third quarter, Campbell’s had cash and cash equivalents of $402 million and total debt of $7,010 million. Cash flow from operations for the first nine months of fiscal 2026 totaled $839 million compared with $872 million in the prior-year period. Capital expenditures were $297 million during the period. The company returned $380 million to shareholders year to date, primarily through dividends, while share repurchases totaled $26 million. Campbell’s delivered approximately $20 million in savings during the quarter, bringing cumulative savings to $200 million toward its fiscal 2028 target of $375 million. Management expects these savings to help offset tariff and inflationary pressures while funding investments in growth initiatives.

CPB Reaffirms Fiscal 2026 GuidanceCampbell’s reaffirmed its previously issued fiscal 2026 outlook. The company continues to expect organic net sales to decline 1-2% year over year. Adjusted EBIT is projected to decrease 17-20%, while adjusted EPS is expected in the range of $2.15-$2.25, representing a decline of 23-26% from the adjusted fiscal 2025 base. Management expects low-single-digit core inflation excluding tariffs, productivity benefits equivalent to roughly 5% of cost of products sold, and approximately $70 million in enterprise cost savings for fiscal 2026. The company also anticipates adjusted net interest expense of $320-$325 million and capital expenditures of roughly $370 million. While management acknowledged ongoing consumer and cost pressures, it expressed confidence in the long-term strength of Campbell’s portfolio, the resilience of at-home cooking trends and the progress being made to improve execution and profitability across the Snacks business.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -8.36% due to these changes.

VGM ScoresAt this time, Campbell has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Campbell has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

CAMDEN, N.J.--(BUSINESS WIRE)--The Campbell's Company (NASDAQ:CPB) (Campbell's) — Campbell's today announced two leadership transitions within its Operating Committee as Dan Poland, Executive Vice President and Chief Enterprise Transformation Officer, and Anthony Sanzio, Executive Vice President and Chief Communications Officer, plan to retire at the end of Campbell's fiscal year. Melissa Nippert will succeed Poland as Senior Vice President and Chief Transformation Officer, and Beth Jolly will.

The deterioration in Campbell's gross and operating margins has been ongoing for an extended time period and seems to be accelerating. Q3, 2026 reported results met expectations with a sales match and an earnings beat of $0.02. However, future quarters will be challenging. An examination of standard metrics measuring Fixed Asset usage reveals inefficiencies that are structural in nature and are inferior to most peer group members.

Recognized by Points of Light’s 2026 The Civic 50 for leadership in community engagement and social impact

CAMDEN, N.J.--(BUSINESS WIRE)--The Campbell’s Company (NASDAQ:CPB) has been named a 2026 honoree of The Civic 50®, Points of Light’s annual recognition of the 50 most community-minded companies in the United States.

Now in its 14th year, The Civic 50 is the nation’s leading corporate social impact recognition program, honoring companies that demonstrate excellence in employee volunteering, community investment and social impact strategy. Companies are evaluated through a comprehensive survey that measures how they use their time, resources and talent to strengthen communities and create meaningful social impact.

“We believe food connects people and that purpose drives how we show up for our communities,” said Mick Beekhuizen, president and CEO of The Campbell’s Company. “This recognition reflects the dedication of our employees who care for our communities through volunteering and giving, and the commitment of The Campbell’s Foundation to invest in the neighborhoods we call home. We’re proud to continue building on our legacy of impact.”

Campbell’s is an active partner in its hometown of Camden, New Jersey, and communities across the United States. Through employee volunteerism, strategic grantmaking and nonprofit partnerships, the company focuses its community impact efforts on increasing food access, encouraging healthy living, and nurturing neighborhoods where Campbell’s operates.

In fiscal 2025, employees contributed more than 27,000 volunteer hours to support local organizations and community initiatives.

The company’s philanthropic work is driven by The Campbell’s Foundation, which provides Community Impact Grants, supports long-term partnerships addressing food access and food security, and matches employee charitable donations.

Campbell’s also continues to advance its Full Futures initiative, a community-driven approach to strengthening school nutrition environments in Camden, N.J.; Charlotte, N.C.; and Hanover, Pa. The program supports healthy school food environments through cafeteria upgrades, expanded meal programs, menu improvements and nutrition education.

“Today’s leading companies understand that community engagement is more than a program, it’s a reflection of their commitment to advancing social impact in ways that strengthen both their company and the communities they serve,” said Jennifer Sirangelo, president and CEO of Points of Light. “Campbell’s demonstrates how to embed purpose into the employee experience, build authentic relationships with communities and use business as a force for good. We’re proud to honor them with the 2026 Civic 50 award.”

The Civic 50 is the only national survey and ranking system focused on measuring corporate community engagement.

Campbell’s has a longstanding history of community engagement and has previously been recognized by The Civic 50, including at the national and regional level. For more information about The Civic 50, visit pointsoflight.org/the-civic-50.

About The Campbell’s Company
For more than 155 years, The Campbell’s Company (NASDAQ:CPB) has been connecting people through food they love. Headquartered in Camden, N.J. since 1869, generations of consumers have trusted Campbell’s to provide delicious and affordable food and beverages. Today, the company is a North American focused brand powerhouse, generating fiscal 2025 net sales of $10.3 billion across two divisions: Meals & Beverages and Snacks. Campbell’s portfolio of 16 leadership brands includes: Campbell’s, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao’s, Snack Factory pretzel crisps, Snyder’s of Hanover, Swanson and V8. For more information, visit www.thecampbellscompany.com.

CAMDEN, N.J.--(BUSINESS WIRE)--Campbell's and Banza, the #1 better-for-you pasta brand in the U.S., today announced the launch of a new gluten free condensed soup option. The new variety pairs the comfort of Campbell's Chicken Noodle Soup with Banza's beloved gluten free chickpea penne pasta, delivering the classic flavor fans know and love. For the first time, one of America's most iconic soups is available for gluten free eaters to enjoy, marking a milestone for Campbell's. This answers growi.

CAMDEN, N.J.--(BUSINESS WIRE)--The Campbell's Company (NASDAQ:CPB) today reported results for its third quarter fiscal 2026 ended May 3, 2026. Unless otherwise stated, all comparisons are to the comparable period in fiscal 2025.

CEO Comments:
"Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds,” said Mick Beekhuizen, Campbell’s President and Chief Executive Officer. “At the same time, we are encouraged by the progress we are making in several priority areas. In Meals & Beverages, our leading brands including Campbell’s, Rao’s, and Swanson continue to benefit from durable at-home cooking trends. In Snacks, we are seeing early signs of progress as we prioritize Goldfish’s core of households with kids, improve execution in Pepperidge Farm fresh bakery, and are taking additional actions to strengthen our salty snacks portfolio. Across the company, we are focused on simplifying the business, accelerating productivity and cost savings, and creating fuel to invest behind our strongest opportunities. We are moving with urgency and remain confident in the long-term strength of our portfolio and our ability to create shareholder value."

Three Months Ended

($ in millions, except per share)

May 3, 2026

April 27, 2025

% Change

Net Sales

As Reported (GAAP)

$2,366

$2,475

(4)%

Organic

(4)%

Earnings Before Interest and Taxes (EBIT)

As Reported (GAAP)

$239

$161

48%

Adjusted

$274

$362

(24)%

Diluted Earnings Per Share

As Reported (GAAP)

$0.41

$0.22

86%

Adjusted

$0.50

$0.73

(32)%

  Note: A detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information is included at the end of this news release.

Items Impacting Comparability
The table below presents a summary of items impacting comparability in each period. A detailed reconciliation of the reported (GAAP) financial information to the adjusted information is included at the end of this news release.

Diluted Earnings Per Share

Three Months Ended

May 3, 2026

April 27, 2025

As Reported (GAAP)

$0.41

$0.22

Costs associated with cost savings and optimization initiatives

$0.17

$0.08

Commodity mark-to-market losses (gains)

$(0.02)

$0.02

Costs associated with acquisition

$0.01

$—

Certain litigation expenses

$—

$0.01

Pension actuarial and curtailment gains

$(0.08)

$—

Impairment charges

$—

$0.37

Accelerated amortization

$—

$0.02

Adjusted*

$0.50

$0.73

  *Numbers may not add due to rounding

Third Quarter Results
Net sales decreased 4% to $2.4 billion, including a modest headwind from the divestiture of noosa. Organic net sales decreased 4% primarily driven by lower volume/mix, with positive net price realization.

Gross profit decreased 11% to $650 million. Gross profit margin decreased 190 basis points to 27.5%. Adjusted gross profit decreased 12% to $656 million. Adjusted gross profit margin decreased 240 basis points to 27.7%, driven primarily by cost inflation and other supply chain costs inclusive of the impact from tariffs, partially offset by supply chain productivity improvements and cost savings, as well as favorable net price realization.

Marketing and selling expenses decreased 1% to $214 million. Adjusted marketing and selling expenses increased 2% to $211 million primarily driven by marketing expenses.

Administrative expenses decreased 4% to $155 million. Adjusted administrative expenses decreased 1% to $149 million mainly driven by the benefit from cost savings initiatives and lower incentive compensation, partially offset by higher general administrative costs.

Other expenses were $8 million compared to $160 million in the prior year. Adjusted other income was $2 million compared to other expenses of $4 million.

EBIT increased 48% to $239 million versus the prior year which reflected a $150 million impairment charge. Adjusted EBIT decreased 24% to $274 million primarily due to lower adjusted gross profit.

Net interest expense of $80 million was consistent with prior year. The effective tax rate increased to 22.0% from the prior-year rate of 18.5%. The adjusted effective tax rate was 22.7%, consistent with the prior year.

EPS increased to $0.41 per share from $0.22 per share. Adjusted EPS decreased 32% to $0.50 per share reflecting lower adjusted EBIT.

Cash Flow and Shareholder Return
Cash flow from operations for the nine months ended May 3, 2026 was $839 million, compared to $872 million in the prior year. Capital expenditures year-to-date were $297 million compared to $296 million. In line with Campbell’s commitment to return value to its shareholders, the company has paid $380 million year-to-date, primarily through cash dividends.

Cost Savings Program
In the third quarter, Campbell's delivered approximately $20 million in savings, bringing total cost savings achieved to $200 million pursuant to its fiscal 2028 target of $375 million. The company intends to use these savings as one of several levers to help offset tariff and broader inflationary headwinds.

Full-Year Fiscal 2026 Guidance:
The company is reaffirming its previously provided guidance for organic net sales, Adjusted EBIT and Adjusted EPS.

Fiscal 2026 guidance ranges are based on fiscal 2025 results excluding the 53rd week, which represented approximately 2% to Net Sales, 2% to Adjusted EBIT and $0.06 to Adjusted EPS.

The company's full-year fiscal 2026 guidance ranges are set forth in the table below:

($ in millions, except per share)

FY25 Results*
(52 weeks)

FY26 Guidance

Organic Net Sales1

$9,979

(2)% to (1)%

Adjusted EBIT

$1,458

(20)% to (17)%

Adjusted EPS

$2.91

(26)% to (23)%

$2.15 to $2.25

Additional underlying guidance assumptions can be found in the accompanying investor presentation available at https://investor.thecampbellscompany.com/events-presentations.

Segment Operating Review
An analysis of net sales and operating earnings by reportable segment follows:

Three Months Ended May 3, 2026

($ in millions)

Meals & Beverages*

Snacks

Total*

Net Sales, as Reported

$1,426

$940

$2,366

Volume/Mix

(5)%

(6)%

(5)%

Net Price Realization

1%

2%

1%

Organic Net Sales

(4)%

(4)%

(4)%

Divestiture1

(1)%

—%

(1)%

% Change vs. Prior Year

(4)%

(4)%

(4)%

Segment Operating Earnings

$213

$95

% Change vs. Prior Year

(16)%

(32)%

  *Numbers may not add due to rounding.

1 Reflects the loss of net sales associated with the divestiture of the noosa business completed on February 24, 2025.

Note: A detailed reconciliation of the reported (GAAP) net sales to organic net sales is included at the end of this news release.

Meals & Beverages
Net sales decreased 4%. Organic net sales decreased 4%, driven by unfavorable volume/mix of 5% which was partially offset by favorable net price realization of 1%. The decline in organic net sales included a net headwind of approximately 1% as a result of the prior year SAP enterprise-resource planning system implementation for Sovos Brands, partially offset by the winter storm shipment delays late in the second quarter of this fiscal year. Sales of U.S. soup decreased 8% driven primarily by condensed and ready-to-serve soups.

Operating earnings decreased 16% primarily due to lower gross profit as a result of the gross impact of tariffs, cost inflation and other supply chain costs, and unfavorable volume/mix. Supply chain productivity improvements, favorable net pricing, and benefits from cost savings initiatives were partial offsets.

Snacks
Net sales, both reported and organic, decreased 4% primarily driven by unfavorable volume/mix of 6%, with 2% net price realization. Organic net sales declines were driven primarily by our salty portfolio, crackers and fresh bakery. Declines for third-party partner brands and contract manufacturing sales were a headwind, as well.

Operating earnings decreased 32% primarily due to lower gross profit as a result of elevated cost inflation and other supply chain costs, unfavorable volume/mix and gross impact of tariffs, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.

Corporate
Corporate expense was $60 million in the quarter compared to $226 million in the prior year. The decrease was primarily due to the impairment charge in the prior year.

Conference Call and Webcast
Campbell's will host a question-and-answer session to discuss these results on Monday, June 8, 2026, at 9:00 a.m. Eastern Time. The earnings slide presentation and management's prepared remarks in both written and pre-recorded audio format are now available on the Events & Presentations section of Campbell's investor relations website at investor.thecampbellscompany.com. Participants calling from the U.S. & Canada may dial in using the toll-free phone number (800) 715-9871. Participants calling from outside the U.S. & Canada may dial in using phone number +1 (646) 307-1963. The conference access code is 8876056. A live listen-only audio webcast, as well as a replay, will be available on the company's investor relations website.

Reportable Segments
The Campbell's Company earnings results are reported as follows:

Meals & Beverages, which consists of soup, simple meals and beverages products in retail and foodservice in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; SpaghettiOs pasta; Campbell’s gravies, beans and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell’s tomato juice; and as of March 12, 2024, Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups; Michael Angelo's frozen entrées and pasta sauces; and noosa yogurts. The noosa yoghurt business was sold on February 24, 2025. The segment also includes snacking products in foodservice and Canada, and beginning in fiscal 2026, the snacking and meals and beverages retail business in Latin America; and

Snacks, which consists of Pepperidge Farm cookies, crackers, fresh bakery and frozen products, including Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod potato chips, Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, and other snacking products in retail in the U.S. The segment also included the results of the Pop Secret popcorn business, which was sold on August 26, 2024.

Through the fourth quarter of fiscal 2025, the snacking and meals and beverages retail business in Latin America was managed under the Snacks segment. Beginning in fiscal 2026, the business is managed under the Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

The company refers to the following products as our “leadership brands”: Campbell’s condensed and ready-to-serve soups; Chunky soups; Swanson broth, stocks and canned poultry; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; V8 juices and beverages; Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups; Pepperidge Farm cookies, crackers and fresh bakery; Goldfish crackers; Snyder’s of Hanover pretzels; Lance sandwich crackers; Cape Cod potato chips; Kettle Brand potato chips; Late July snacks; and Snack Factory pretzel crisps.

About The Campbell's Company
For more than 155 years, The Campbell’s Company (NASDAQ:CPB) has been connecting people through food they love. Headquartered in Camden, N.J. since 1869, generations of consumers have trusted Campbell's to provide delicious and affordable food and beverages. Today, the company is a North American focused brand powerhouse, generating fiscal 2025 net sales of $10.3 billion across two divisions: Meals & Beverages and Snacks. Campbell's portfolio of 16 leadership brands includes: Campbell’s, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao’s, Snack Factory pretzel crisps, Snyder’s of Hanover, Swanson and V8. For more information, visit www.thecampbellscompany.com.

Forward-Looking Statements
This release contains “forward-looking statements” that reflect the company’s current expectations about the impact of its future plans and performance on the company’s business or financial results. These forward-looking statements, including any statements made regarding sales, EBIT and EPS guidance, rely on a number of assumptions and estimates that could be inaccurate, and which are subject to risks and uncertainties. The factors that could cause the company’s actual results to vary materially from those anticipated or expressed in any forward-looking statement include: declines or volatility in financial markets, deteriorating economic conditions and other external factors, including the impact and application of new or changes to existing governmental laws, regulations, and policies; the risks associated with imposed and threatened tariffs by the U.S. and reciprocal tariffs by its trading partners; the risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation, including those related to ongoing geopolitical conflicts and tariffs; disruptions in or inefficiencies to the company’s supply chain and/or operations, including reliance on key contract manufacturer and supplier relationships; the company’s ability to execute on and realize the expected benefits from its strategy, including sales growth in and/or maintenance of its market share position in snacks, soups, sauces and beverages; the impact of strong competitive responses to the company’s efforts to leverage brand power with product innovation, promotional programs and new advertising; the risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies; changes in consumer demand for the company’s products and favorable perception of the company’s brands; the risk that the cost savings and any other synergies from the Sovos Brands, Inc. (“Sovos Brands”) transaction may not be fully realized or may take longer or cost more to be realized than expected, including that the Sovos Brands transaction may not be accretive to the extent anticipated; the risks related to the La Regina transaction, including that the benefits from the transaction may not be fully realized or may take longer or cost more to be realized than expected; the ability to realize projected cost savings and benefits from cost savings initiatives and the integration of recent acquisitions; the risks related to the effectiveness of the company's hedging activities and the company's ability to respond to volatility in commodity prices; the company’s ability to manage changes to its organizational structure and/or business processes, including selling, distribution, manufacturing and information management systems or processes; changing inventory management practices by certain of the company’s key customers; a changing customer landscape, with value and e-commerce retailers expanding their market presence, while certain of the company’s key customers maintain significance to the company’s business; product quality and safety issues, including recalls and product liabilities; the possible disruption to the independent contractor distribution models used by certain of the company’s businesses, including as a result of litigation or regulatory actions affecting their independent contractor classification; the uncertainties of litigation and regulatory actions against the company; a disruption, failure or security breach of the company’s or the company's vendors' information technology systems, including ransomware attacks; the company's indebtedness and ability to pay such indebtedness; a change in outlook or downgrade in our public credit ratings; impairment to goodwill or other intangible assets; the company’s ability to protect its intellectual property rights; the company’s ability to attract and retain key talent; goals and initiatives related to, and the impacts of, climate change, including from weather-related events; the costs, disruption and diversion of management’s attention associated with activist investors; increased liabilities and costs related to the company’s defined benefit pension plans; unforeseen business disruptions or other impacts due to political instability, civil disobedience, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics or other outbreaks of disease or other calamities; and other factors described in the company’s most recent Form 10-K and subsequent Securities and Exchange Commission filings. This discussion of uncertainties is by no means exhaustive but is designed to highlight important factors that may impact the company’s outlook. The company disclaims any obligation or intent to update forward-looking statements in order to reflect new information, events or circumstances after the date of this release.

THE CAMPBELL'S COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)

(millions, except per share amounts)

  Three Months Ended

May 3, 2026

April 27, 2025

Net sales

$

2,366

$

2,475

Costs and expenses

Cost of products sold

1,716

1,747

Marketing and selling expenses

214

216

Administrative expenses

155

162

Research and development expenses

25

23

Other expenses / (income)

8

160

Restructuring charges

9

6

Total costs and expenses

2,127

2,314

Earnings before interest and taxes

239

161

Interest, net

80

80

Earnings before taxes

159

81

Taxes on earnings

35

15

Net earnings

124

66

Net loss attributable to noncontrolling interests

—

—

Net earnings attributable to The Campbell's Company

$

124

$

66

Per share - basic

Net earnings attributable to The Campbell's Company

$

.42

$

.22

Weighted average shares outstanding - basic

298

298

Per share - assuming dilution

Net earnings attributable to The Campbell's Company

$

.41

$

.22

Weighted average shares outstanding - assuming dilution

299

299

THE CAMPBELL'S COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)

(millions, except per share amounts)

  Nine Months Ended

May 3, 2026

April 27, 2025

Net sales

$

7,607

$

7,932

Costs and expenses

Cost of products sold

5,448

5,518

Marketing and selling expenses

719

722

Administrative expenses

482

502

Research and development expenses

71

74

Other expenses / (income)

24

244

Restructuring charges

15

17

Total costs and expenses

6,759

7,077

Earnings before interest and taxes

848

855

Interest, net

240

243

Earnings before taxes

608

612

Taxes on earnings

145

155

Net earnings

463

457

Net loss attributable to noncontrolling interests

—

—

Net earnings attributable to The Campbell's Company

$

463

$

457

Per share - basic

Net earnings attributable to The Campbell's Company

$

1.55

$

1.53

Weighted average shares outstanding - basic

298

298

Per share - assuming dilution

Net earnings attributable to The Campbell's Company

$

1.55

$

1.52

Weighted average shares outstanding - assuming dilution

299

300

THE CAMPBELL'S COMPANY

CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)

(millions, except per share amounts)

  Three Months Ended

May 3, 2026

April 27, 2025

Percent

Change

Sales

Contributions:

Meals & Beverages

$

1,426

$

1,493

(4

)%

Snacks

940

982

(4

)%

Total sales

$

2,366

$

2,475

(4

)%

Earnings

Contributions:

Meals & Beverages

$

213

$

253

(16

)%

Snacks

95

140

(32

)%

Total operating earnings

308

393

(22

)%

Corporate income (expense)

(60

)

(226

)

Restructuring charges

(9

)

(6

)

Earnings before interest and taxes

239

161

48

%

Interest, net

80

80

Taxes on earnings

35

15

Net earnings

124

66

88

%

Net loss attributable to noncontrolling interests

—

—

Net earnings attributable to The Campbell's Company

$

124

$

66

88

%

Per share - assuming dilution

Net earnings attributable to The Campbell's Company

$

.41

$

.22

86

%

  Beginning in fiscal 2026, the snacking and meals and beverages retail business in Latin America formerly included in the Snacks segment is now managed under the Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

THE CAMPBELL'S COMPANY

CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS (unaudited)

(millions, except per share amounts)

    Nine Months Ended

May 3, 2026

April 27, 2025

Percent

Change

Sales

Contributions:

Meals & Beverages

$

4,741

$

4,943

(4

)%

Snacks

2,866

2,989

(4

)%

Total sales

$

7,607

$

7,932

(4

)%

Earnings

Contributions:

Meals & Beverages

$

762

$

892

(15

)%

Snacks

285

385

(26

)%

Total operating earnings

1,047

1,277

(18

)%

Corporate income (expense)

(184

)

(405

)

Restructuring charges

(15

)

(17

)

Earnings before interest and taxes

848

855

(1

)%

Interest, net

240

243

Taxes on earnings

145

155

Net earnings

463

457

1

%

Net loss attributable to noncontrolling interests

—

—

Net earnings attributable to The Campbell's Company

$

463

$

457

1

%

Per share - assuming dilution

Net earnings attributable to The Campbell's Company

$

1.55

$

1.52

2

%

  Beginning in fiscal 2026, the snacking and meals and beverages retail business in Latin America formerly included in the Snacks segment is now managed under the Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

THE CAMPBELL'S COMPANY

CONSOLIDATED BALANCE SHEETS (unaudited)

(millions)

  May 3, 2026

April 27, 2025

Current assets

Cash and cash equivalents

$

402

$

143

Accounts receivable

552

668

Inventories

1,451

1,294

Other current assets

154

121

Total current assets

2,559

2,226

Plant assets, net of depreciation

2,735

2,665

Goodwill

4,993

4,991

Other intangible assets, net of amortization

4,325

4,366

Other assets

530

580

Total assets

$

15,142

$

14,828

Current liabilities

Short-term borrowings

$

864

$

799

Accounts payable

1,361

1,297

Accrued liabilities

605

620

Dividend payable

118

119

Accrued income taxes

6

14

Total current liabilities

2,954

2,849

Long-term debt

6,146

6,097

Deferred taxes

1,434

1,349

Other liabilities

578

661

Total liabilities

11,112

10,956

Commitments and contingencies

The Campbell's Company shareholders' equity

Preferred stock; authorized 40 shares; none issued

—

—

Capital stock, $0.0375 par value; authorized 560 shares; issued 323 shares

12

12

Additional paid-in capital

405

415

Earnings retained in the business

4,803

4,665

Capital stock in treasury, at cost

(1,183

)

(1,207

)

Accumulated other comprehensive loss

(9

)

(15

)

Total The Campbell's Company shareholders' equity

4,028

3,870

Noncontrolling interests

2

2

Total equity

4,030

3,872

Total liabilities and equity

$

15,142

$

14,828

THE CAMPBELL'S COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(millions)

  Nine Months Ended

May 3, 2026

April 27, 2025

Cash flows from operating activities:

Net earnings

$

463

$

457

Adjustments to reconcile net earnings to operating cash flow

Impairment charges

—

176

Restructuring charges

15

17

Stock-based compensation

48

52

Pension and postretirement benefit expense

4

2

Depreciation and amortization

306

328

Deferred income taxes

81

(58

)

Loss on sale of businesses

—

25

Other

93

92

Changes in working capital, net of divestitures

Accounts receivable

21

(57

)

Inventories

(27

)

49

Other current assets

(52

)

(17

)

Accounts payable and accrued liabilities

(71

)

(150

)

Other

(42

)

(44

)

Net cash provided by operating activities

839

872

Cash flows from investing activities:

Purchases of plant assets

(297

)

(296

)

Purchases of routes

(56

)

(130

)

Sales of routes

51

96

Sales of businesses, net of cash divested

5

258

Other

(1

)

(8

)

Net cash used in investing activities

(298

)

(80

)

Cash flows from financing activities:

Short-term borrowings, including commercial paper

1,376

1,189

Short-term repayments, including commercial paper

(1,399

)

(1,093

)

Long-term borrowings

549

1,144

Long-term repayments

(400

)

(1,550

)

Dividends paid

(354

)

(343

)

Treasury stock purchases

(26

)

(60

)

Payments related to tax withholding for stock-based compensation

(13

)

(30

)

Payments of debt issuance costs

(5

)

(12

)

Net cash provided used in financing activities

(272

)

(755

)

Effect of exchange rate changes on cash

1

(2

)

Net change in cash and cash equivalents

270

35

Cash and cash equivalents — beginning of period

132

108

Cash and cash equivalents — end of period

$

402

$

143

Reconciliation of GAAP to Non-GAAP Financial Measures
Third Quarter Ended May 3, 2026

The Campbell's Company (the "company") uses certain non-GAAP financial measures as defined by the Securities and Exchange Commission in certain communications. These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and should be considered in addition to, not in lieu of, GAAP reported measures. Management believes that also presenting certain non-GAAP financial measures provides additional information to facilitate comparison of the company's historical operating results and trends in its underlying operating results, and provides transparency on how the company evaluates its business. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the company's performance. Management considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of the company’s performance and trends in its underlying operating results. The adjustments on earnings may include but are not limited to items such as: unusual or non-recurring gains or charges; costs associated with cost savings and optimization initiatives; actuarial and curtailment gains or losses on pension and postretirement plans; unrealized mark-to-market gains or losses on outstanding undesignated commodity hedges; gains or losses on the extinguishment of debt; gains or losses on divestitures; costs associated with acquisitions; impairment charges or accelerated amortization; certain litigation expenses or recoveries; and costs or recoveries related to a cybersecurity incident. Depending upon facts or circumstances, management may change these adjustments. When these adjustments change, the company will provide updated definitions of its non-GAAP financial measures. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company will remove these items from its non-GAAP definitions.

Organic Net Sales
Organic net sales are net sales excluding the impact of currency, acquisitions, divestitures and the additional week in fiscal 2025. Management believes that excluding these items, which are not part of the ongoing business, improves the comparability of year-to-year results. A reconciliation of net sales as reported to organic net sales follows.

Three Months Ended

May 3, 2026

April 27, 2025

% Change

(millions)

Net Sales,
as
Reported

Impact of
Currency

Organic Net
Sales

Net Sales,
as
Reported

Impact of
Divestiture

Organic Net
Sales

Net Sales,
as
Reported

Organic Net
Sales

Meals & Beverages

$

1,426

$

(5

)

$

1,421

$

1,493

$

(16

)

$

1,477

(4

)%

(4

)%

Snacks

940

—

940

982

—

982

(4

)%

(4

)%

Total Net Sales

$

2,366

$

(5

)

$

2,361

$

2,475

$

(16

)

$

2,459

(4

)%

(4

)%

Nine Months Ended

May 3, 2026

April 27, 2025

% Change

(millions)

Net Sales,
as
Reported

Impact of
Currency

Organic Net
Sales

Net Sales,
as
Reported

Impact of
Divestitures

Organic Net
Sales

Net Sales
as
Reported

Organic Net
Sales

Meals & Beverages

$

4,741

$

(7

)

$

4,734

$

4,943

$

(99

)

$

4,844

(4

)%

(2

)%

Snacks

2,866

—

2,866

2,989

(9

)

2,980

(4

)%

(4

)%

Total Net Sales

$

7,607

$

(7

)

$

7,600

$

7,932

$

(108

)

$

7,824

(4

)%

(3

)%

Twelve Months Ended

August 3, 2025

(millions)

Net Sales,
as
Reported

Estimated
Impact of 53rd
Week

Impact of
Divestitures

Organic Net
Sales for

FY 2026
Guidance

Meals & Beverages

$

6,179

$

(88

)

$

(99

)

$

5,992

Snacks

4,074

(78

)

(9

)

3,987

Total Net Sales

$

10,253

$

(166

)

$

(108

)

$

9,979

Items Impacting Earnings
Adjusted Net earnings are net earnings excluding the impact of costs associated with cost savings and optimization initiatives, unrealized mark-to-market gains or losses on outstanding undesignated commodity hedges, costs associated with acquisitions, certain litigation expenses or recoveries, actuarial and curtailment gains or losses on pension and postretirement plans, impairment charges, costs or recoveries related to a cybersecurity incident, accelerated amortization, gains or losses on divestitures, and the additional week in fiscal 2025. Management believes that financial information excluding certain items that are not considered to reflect the ongoing operating results, such as those listed below, improves the comparability of year-to-year results. Consequently, management believes that investors may be able to better understand its results excluding these items.

The following items impacted earnings:

(1)

The company has implemented several cost savings initiatives in recent years. In the third quarter of fiscal 2026, the company recorded Restructuring charges of $9 million and implementation costs and other related costs of $38 million in Other expenses / (income), $12 million in Cost of products, $6 million in Administrative expenses, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. In the third quarter of fiscal 2025, the company recorded Restructuring charges of $6 million and implementation costs and other related costs of $7 million in Cost of products sold, $7 million in Administrative expenses and $1 million in Research and development expenses related to these initiatives. In the nine-month period of fiscal 2026, the company recorded Restructuring charges of $15 million and implementation costs and other related costs of $38 million in Other expenses / (income), $28 million in Cost of products sold, $21 million in Administrative expenses, $3 million in Marketing and selling expenses and $2 million in Research and development expenses. In the nine-month period of fiscal 2025, the company recorded Restructuring charges of $17 million and implementation costs and other related costs of $26 million in Administrative expenses, $25 million in Cost of products sold, $3 million in Research and development expenses and $2 million in Marketing and selling expenses related to these initiatives. For the year ended August 3, 2025, the company recorded Restructuring charges of $24 million and implementation costs and other related costs of $41 million in Administrative expenses, $32 million in Cost of products sold, $4 million in Marketing and selling expenses and $3 million in Research and development expenses related to these initiatives.

  In the second quarter of fiscal 2024, the company began implementation of an optimization initiative to improve the effectiveness of its Snacks direct-store-delivery route-to-market network. In the third quarter of fiscal 2026, the company recognized $2 million in Marketing and selling expenses related to this initiative. In the third quarter of fiscal 2025, the company recognized $9 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative. In the nine-month period of fiscal 2026, the company recognized $20 million in Marketing and selling expenses related to this initiative. In the nine-month period of fiscal 2025, the company recognized $17 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative. For the year ended August 3, 2025, the company recognized $20 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.

  In the third quarter of fiscal 2026, the total aggregate impact related to the cost savings and optimization initiatives was $69 million ($52 million after tax, or $.17 per share). In the third quarter of fiscal 2025, the total aggregate impact related to the cost savings and optimization initiatives was $31 million ($24 million after tax, or $.08 per share). In the nine-month period of fiscal 2026, the total aggregate impact related to the cost savings and optimization initiatives was $127 million ($96 million after tax, or $.32 per share). In the nine-month period of fiscal 2025, the total aggregate impact related to the cost savings and optimization initiatives was $91 million ($70 million after tax, or $.23 per share). For the year ended August 3, 2025, the total aggregate impact related to the cost savings and optimization initiatives was $125 million ($96 million after tax, or $.32 per share).

  (2)

In the third quarter of fiscal 2026, the company recognized gains in Cost of products sold of $6 million ($5 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the third quarter of fiscal 2025, the company recognized losses in Cost of products sold of $10 million ($7 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the nine-month period of fiscal 2026, the company recognized gains in Cost of products sold of $20 million ($15 million after tax, or $.05 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the nine-month period of fiscal 2025, the company recognized gains in Cost of products sold of $8 million ($6 million after tax, or $.02 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. For the year ended August 3, 2025, the company recognized gains in Cost of products sold of $11 million ($8 million after tax, or $.03 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges.

  (3)

In the second quarter of fiscal 2026, the company entered into purchase agreements to acquire 49% of the issued and outstanding equity interests of La Regina di San Marzano di Antonio Romano S.p.A. and La Regina Atlantica, LLC. Subsequent to the end of the third quarter, the acquisition was completed on May 4, 2026. In the third quarter of fiscal 2026, the company recorded costs in Other expenses / (income) of $2 million ($2 million after tax, or $.01 per share) associated with the acquisition. In the nine-month period of fiscal 2026, the company recorded costs in Other expenses / (income) of $4 million ($4 million after tax, or $.01 per share) associated with the acquisition.

  (4)

In the nine-month period of fiscal 2026, the company recorded litigation expenses in Administrative expenses of $11 million ($8 million after tax, or $.03 per share) related to Plum and certain other litigation matters. In the third quarter of fiscal 2025, the company recorded litigation expenses in Administrative expenses of $4 million ($4 million after tax, or $.01 per share) related to Plum and certain other litigation matters. In the nine-month period of fiscal 2025, the company recorded litigation expenses in Administrative expenses of $6 million ($6 million after tax, or $.02 per share) related to Plum and certain other litigation matters. For the year ended August 3, 2025, the company recorded litigation expenses in Administrative expenses of $5 million ($5 million after tax, or $.02 per share) related to Plum and certain other litigation matters.

  (5)

In the third quarter of fiscal 2026, the company recognized actuarial and curtailment gains in Other expenses / (income) of $30 million ($23 million after tax, or $.08 per share). The actuarial and curtailment gains were related to interim remeasurements of certain pension plans due to plan amendments and activity under the cost savings initiatives. In the nine-month period of fiscal 2025, the company recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment. For the year ended August 3, 2025, the company recognized actuarial losses on pension and postretirement plans in Other expenses / (income) of $24 million ($18 million after tax, or $.06 per share).

  (6)

In the third quarter of fiscal 2025, the company performed an interim impairment assessment on the Snyder's of Hanover trademark within the Snacks segment and recognized an impairment charge of $150 million ($112 million after tax, $.37 per share) on the trademark.

In the second quarter of fiscal 2025, the company performed an interim impairment assessment on certain salty snacks and cookie trademarks within the Snacks segment, including Tom's, Jays, Kruncher's, O-Ke-Doke, Stella D'oro and Archway, collectively referred to as the company's "Allied brands," and recognized an impairment charge of $15 million on the trademarks.

In the second quarter of fiscal 2025, the company performed an interim impairment assessment on the Late July trademark within the Snacks segment and recognized an impairment charge of $11 million on the trademark.

In the nine-month period of fiscal 2025, the total aggregate impact of the impairment charges was $176 million ($131 million after tax, or $.44 per share).

  The charges were included in Other expenses / (income).

  (7)

In the nine-month periods of fiscal 2026 and 2025, the company recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of fiscal 2023.

  (8)

In the third quarter of fiscal 2025, the company recorded accelerated amortization expense in Other expenses / (income) of $6 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of fiscal 2023. In the nine-month period of fiscal 2025, the company recorded accelerated amortization expense in Other expenses / (income) of $20 million ($15 million after tax, or $.05 per share).

  (9)

In the third quarter of fiscal 2025, the company completed the sale of its noosa yoghurt business. In the second quarter of fiscal 2025, the company recorded $15 million of tax expense related to the sale. In the nine-month period of fiscal 2025, the company recorded an after-tax loss of $15 million ($.05 per share) on the sale of the business. In the first quarter of fiscal 2025, the company recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of its Pop Secret popcorn business. In the nine-month period of fiscal 2025, the total aggregate impact of charges associated with divestitures was $25 million ($34 million after tax, or $.11 per share).

  (10)

Fiscal 2026 has 52 weeks and Fiscal 2025 had 53 weeks. The estimated impact of the additional week in the fourth quarter of fiscal 2025 was $29 million on earnings before interest and taxes, $6 million on interest, net, $4 million on taxes on earnings and $19 million ($.06 per share) on net earnings attributable to The Campbell's Company.

The following tables reconcile financial information, presented in accordance with GAAP, to financial information excluding certain items:

Three Months Ended

Nine Months Ended

(millions, except per share amounts)

May 3,
2026

April 27,
2025

Percent
Change

May 3,
2026

April 27,
2025

Percent
Change

Gross profit, as reported

$

650

$

728

(11)%

$

2,159

$

2,414

(11)%

Gross profit margin, as reported

27.5

%

29.4

%

(190) pts

28.4

%

30.4

%

(200) pts

Costs associated with cost savings and optimization initiatives (1)

12

7

28

25

Commodity mark-to-market losses (gains) (2)

(6

)

10

(20

)

(8

)

Adjusted Gross profit

$

656

$

745

(12)%

$

2,167

$

2,431

(11)%

Adjusted Gross profit margin

27.7

%

30.1

%

(240) pts

28.5

%

30.6

%

(210) pts

Marketing and selling expenses, as reported

$

214

$

216

(1)%

$

719

$

722

—%

Costs associated with cost savings and optimization initiatives (1)

(3

)

(9

)

(23

)

(19

)

Adjusted Marketing and selling expenses

$

211

$

207

2%

$

696

$

703

(1)%

Administrative expenses, as reported

$

155

$

162

(4)%

$

482

$

502

(4)%

Costs associated with cost savings and optimization initiatives (1)

(6

)

(8

)

(21

)

(27

)

Certain litigation expenses (4)

—

(4

)

(11

)

(6

)

Cybersecurity incident recoveries (7)

—

—

1

1

Adjusted Administrative expenses

$

149

$

150

(1)%

$

451

$

470

(4)%

Research and development expenses, as reported

$

25

$

23

$

71

$

74

Costs associated with cost savings and optimization initiatives (1)

(1

)

(1

)

(2

)

(3

)

Adjusted Research and development expenses

$

24

$

22

$

69

$

71

Other expenses / (income), as reported

$

8

$

160

$

24

$

244

Costs associated with cost savings and optimization initiatives (1)

(38

)

—

(38

)

—

Costs associated with acquisition (3)

(2

)

—

(4

)

—

Pension and postretirement actuarial and curtailment gains (losses) (5)

30

—

30

(2

)

Impairment charges (6)

—

(150

)

—

(176

)

Accelerated amortization (8)

—

(6

)

—

(20

)

Charges associated with divestitures (9)

—

—

—

(25

)

Adjusted Other expenses / (income)

$

(2

)

$

4

$

12

$

21

Three Months Ended

Nine Months Ended

Year Ended

(millions, except per share amounts)

May 3, 2026

April 27,
2025

Percent
Change

May 3, 2026

April 27,
2025

Percent
Change

August 3,
2025

Earnings before interest and taxes, as reported

$

239

$

161

48%

$

848

$

855

(1)%

$

1,124

Costs associated with cost savings and optimization initiatives (1)

69

31

127

91

125

Commodity mark-to-market losses (gains) (2)

(6

)

10

(20

)

(8

)

(11

)

Costs associated with acquisition (3)

2

—

4

—

—

Certain litigation expenses (4)

—

4

11

6

5

Pension and postretirement actuarial and curtailment losses (gains) (5)

(30

)

—

(30

)

2

24

Impairment charges (6)

—

150

—

176

176

Cybersecurity incident recoveries (7)

—

—

(1

)

(1

)

(1

)

Accelerated amortization (8)

—

6

—

20

20

Charges associated with divestitures (9)

—

—

—

25

25

Estimated impact of 53rd week (10)

—

—

—

—

(29

)

Adjusted Earnings before interest and taxes

$

274

$

362

(24)%

$

939

$

1,166

(19)%

$

1,458

Interest, net, as reported

$

80

$

80

$

240

$

243

$

328

Estimated impact of 53rd week (10)

—

—

—

—

(6

)

Adjusted Interest, net

$

80

$

80

$

240

$

243

$

322

Adjusted Earnings before taxes

$

194

$

282

$

699

$

923

$

1,136

Taxes on earnings, as reported

$

35

$

15

133%

$

145

$

155

(6)%

$

194

Effective income tax rate, as reported

22.0

%

18.5

%

350 pts

23.8

%

25.3

%

(150) pts

24.4

%

Costs associated with cost savings and optimization initiatives (1)

17

7

31

21

29

Commodity mark-to-market losses (gains) (2)

(1

)

3

(5

)

(2

)

(3

)

Costs associated with acquisition (3)

—

—

—

—

—

Certain litigation expenses (4)

—

—

3

—

—

Pension and postretirement actuarial and curtailment losses (gains) (5)

(7

)

—

(7

)

1

6

Impairment charges (6)

—

38

—

45

45

Cybersecurity incident recoveries (7)

—

—

—

—

—

Accelerated amortization (8)

—

1

—

5

5

Charges associated with divestitures (9)

—

—

—

(9

)

(9

)

Estimated impact of 53rd week (10)

—

—

—

—

(4

)

Adjusted Taxes on earnings

$

44

$

64

(31)%

$

167

$

216

(23)%

$

263

Adjusted effective income tax rate

22.7

%

22.7

%

0 pts

23.9

%

23.4

%

50 pts

23.2

%

Net earnings attributable to The Campbell's Company, as reported

$

124

$

66

88%

$

463

$

457

1%

$

602

Costs associated with cost savings and optimization initiatives (1)

52

24

96

70

96

Commodity mark-to-market losses (gains) (2)

(5

)

7

(15

)

(6

)

(8

)

Costs associated with acquisition (3)

2

—

4

—

—

Certain litigation expenses (4)

—

4

8

6

5

Pension and postretirement actuarial and curtailment losses (gains) (5)

(23

)

—

(23

)

1

18

Impairment charges (6)

—

112

—

131

131

Cybersecurity incident recoveries (7)

—

—

(1

)

(1

)

(1

)

Accelerated amortization (8)

—

5

—

15

15

Charges associated with divestitures (9)

—

—

—

34

34

Estimated impact of 53rd week (10)

—

—

—

—

(19

)

Adjusted Net earnings attributable to The Campbell's Company

$

150

$

218

(31)%

$

532

$

707

(25)%

$

873

Diluted net earnings per share attributable to The Campbell's Company, as reported

$

.41

$

.22

86%

$

1.55

$

1.52

2%

$

2.01

Costs associated with cost savings and optimization initiatives (1)

.17

.08

.32

.23

.32

Commodity mark-to-market losses (gains) (2)

(.02

)

.02

(.05

)

(.02

)

(.03

)

Costs associated with acquisition (3)

.01

—

.01

—

—

Certain litigation expenses (4)

—

.01

.03

.02

.02

Pension and postretirement actuarial and curtailment losses (gains) (5)

(.08

)

—

(.08

)

—

.06

Impairment charges (6)

—

.37

—

.44

.44

Cybersecurity incident recoveries (7)

—

—

—

—

—

Accelerated amortization (8)

—

.02

—

.05

.05

Charges associated with divestitures (9)

—

—

—

.11

.11

Estimated impact of 53rd week (10)

—

—

—

—

(.06

)

Adjusted Diluted net earnings per share attributable to The Campbell's Company*

$

.50

$

.73

(32)%

$

1.78

$

2.36

(25)%

$

2.91

*The sum of individual per share amounts may not add due to rounding.

Campbell's sales declined in the fiscal third quarter, driven in part by further declines in its snacks business, but said its profit rose.

Campbell's (CPB - Free Report) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.17%. A quarter ago, it was expected that this maker of canned soup, Pepperidge Farm cookies and V8 juice would post earnings of $0.57 per share when it actually produced earnings of $0.51, delivering a surprise of -10.53%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Campbell, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.37 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.86%. This compares to year-ago revenues of $2.48 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Campbell shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 7.9%.

What's Next for Campbell?While Campbell has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Campbell was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $2.17 billion in revenues for the coming quarter and $2.18 on $9.9 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Burcon NutraScience Corp (BRCNF - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +56.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Burcon NutraScience Corp's revenues are expected to be $1.03 million, up 3333.3% from the year-ago quarter.

Campbell's (CPB - Free Report) reported $2.37 billion in revenue for the quarter ended April 2026, representing a year-over-year decline of 4.4%. EPS of $0.50 for the same period compares to $0.73 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.39 billion, representing a surprise of -0.86%. The company delivered an EPS surprise of +4.17%, with the consensus EPS estimate being $0.48.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Campbell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Meals & Beverages: $1.43 billion versus $1.45 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -2.5% change.Net Sales- Snacks: $940 million versus $938.8 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.1% change.Operating Earnings- Meals & Beverages: $213 million versus $218.01 million estimated by five analysts on average.Operating Earnings- Corporate: $-60 million compared to the $-47.82 million average estimate based on five analysts.Operating Earnings- Snacks: $95 million versus $89.46 million estimated by five analysts on average.View all Key Company Metrics for Campbell here>>>

Shares of Campbell have returned +4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

Campbell's Company CPB shares are down despite reporting a Q3 adjusted EPS of $0.50, exceeding the FactSet consensus of $0.48. Revenue reached $2.37 billion, aligning closely with expectations. The company reaffirmed its FY26 adjusted EPS guidance at $2.15-$2.25. However, investor concerns are evident as they focus on a 4% organic sales decline and struggles in key segments, overshadowing the positive EPS result and guidance.

Snacks Underperformance: Management noted that the Snacks segment faced challenges due to lower-than-expected market consumption, issues with fresh bakery execution, and heightened competition in salty snacks. Additionally, partner and contract brands contributed to a 1-point headwind on net sales. Meals & Beverages Struggles: Despite strong trends in soup and sauce, the segment experienced a 4% decline in sales and operating earnings dropped by 16%, indicating that even stable areas of the portfolio are feeling the pressure. Rao’s Brand Success: Rao’s continues to be a growth driver, surpassing $1 billion in trailing 12-month sales. The brand's strong consumption indicates that premium products can still thrive despite broader market challenges. Margin Pressures: The adjusted gross margin fell by 240 basis points to 27.7%, primarily due to inflation and supply chain costs, including tariffs. These were only partially mitigated by productivity gains and cost savings. Cost Savings Efforts: Campbell's achieved approximately $20 million in cost savings in Q3 and is on track to meet its FY28 target of $375 million, emphasizing productivity as a critical strategy to counter inflation and volume declines. Weak Guidance Outlook: While the FY26 adjusted EPS guidance remains at $2.15-$2.25, the overall forecast suggests a 1-2% decline in organic net sales and a 17-20% drop in adjusted EBIT, indicating a focus on stabilization rather than growth. The stock's decline reflects investor skepticism regarding CPB’s ability to maintain guidance without further cuts. Q3 results reveal widespread pressure, with negative organic sales and declining segment profits. The company's future performance appears increasingly tied to cost management and pricing strategies rather than a rebound in consumer demand. While the Snacks segment shows the most significant challenges, the decline in Meals & Beverages operating earnings indicates that issues are not confined to one area. Improved sentiment may hinge on recovery in Snacks consumption and bakery execution, as well as better sales trends in Meals & Beverages, while persistent inflation and negative volume could dampen prospects.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Campbell's Company (CPB) Q3 2026 Earnings Call Transcript

The Campbell's Co (CPB) Q3 2026 Earnings Call Highlights: Strategic Innovations Amid Inflationary Challenges The Campbell's Co (CPB) focuses on core brand growth and cost-saving measures while navigating inflation and logistics hurdles.

Release Date: June 08, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points The Campbell's Co CPB is focusing on core brands like Goldfish and Pepperidge Farm, which have shown stabilization and potential for growth.The company is implementing significant cost-saving measures, including a $100 million SG&A reduction plan and an early retirement package.There is a strategic focus on innovation, particularly in the Meals & Beverages segment, with new product launches in soups and sauces.The Campbell's Co (CPB) is actively managing its trade investments to improve ROI, focusing on feature and display promotions over less effective TPRs.The company is maintaining its dividend, emphasizing its importance to shareholders while balancing leverage reduction and investment-grade rating maintenance. Negative Points The Campbell's Co (CPB) is facing significant inflationary pressures, with an expected 5% to 6% inflation rate due to oil prices and other factors.There are ongoing challenges in the Snacks segment, particularly with the Salty Snacks category, which may take time to stabilize.The company is experiencing higher logistics and freight costs due to a driver shortage and elevated diesel prices.There is uncertainty around the impact of tariff refunds, with potential pressure from retailers to pass savings back to consumers.The company anticipates a lower end of net sales growth for the fiscal year, with EPS guidance reflecting a wide range due to various cost pressures. Q & A Highlights Q: In today's prepared remarks, you discussed some "tough decisions" in Snacks and potential inflation impacts. Can you elaborate on the magnitude of these factors for next year and potential mitigating actions?
A: Todd Cunfer, CFO: Base inflation was around 3% before the Middle East conflict. With oil prices at $100 a barrel, we're looking at an additional 2% to 3% inflation. There's also a driver shortage causing higher logistics costs. We plan to offset these with elevated productivity, a $100 million SG&A reduction, and potential pricing adjustments if necessary.

Q: Given the costs and reinvestment in fiscal '27, what changes in capital allocation might be needed, and what are your thoughts on the dividend?
A: Todd Cunfer, CFO: The dividend is crucial to shareholders, and we have no plans to increase it soon. We're focused on reducing leverage and maintaining an investment-grade rating. We'll prioritize high-priority CapEx projects and consider hybrid debt instruments. M&A is currently off the table.

Q: Can you expand on the rationalization of the Snacks portfolio and the consolidation of nodes in the network?
A: Mick Beekhuizen, CEO: We're focusing on simplification and the core of our brands, like Goldfish. We're supporting fewer, more meaningful innovations and making conscious choices about brand support. Cost savings initiatives will continue to improve margins, and we're looking at SKU reductions to simplify operations.

Q: Can you provide perspective on the organic sales outlook for the fourth quarter, which implies a significant improvement?
A: Mick Beekhuizen, CEO: The ERP conversion from Sovos affected Q3, but the $30 million impact will benefit Q4. Meals & Beverages will see strong growth due to innovation, while Snacks will be similar to Q3. Overall, net sales should be flat to slightly up.

Q: Regarding potential price increases to address inflation, how would you approach this given the competitive landscape?
A: Mick Beekhuizen, CEO: We'll focus on productivity and cost savings first. If necessary, we'll consider surgical pricing in parts of the portfolio. The external environment is volatile, so we'll take appropriate actions as needed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Campbell's Today

$22.81 +0.08 (+0.35%)

As of 04:00 PM Eastern

52-Week Range$19.56▼

$34.17Dividend Yield6.84%

P/E Ratio11.29

Price Target$21.88

From a multi-year perspective, Campbell’s Soup Company’s NASDAQ: CPB stock price has experienced a precipitous drop, but it appears to have reached a bottom in 2026, ready for value-oriented buy-and-hold investors to scoop it up.

Weakening sales volume, sluggish trends, and negative guidance revisions have weighed on results, but the company is expected to rebound in the upcoming quarters. The consensus is an inflection and reversion to growth by the middle of fiscal 2027, coinciding with the winter 2027 period, and a quicker recovery may be experienced. Management cited emerging strengths across both core segments in its fiscal Q3 2026 update, underpinned by efforts to simplify operations and improve productivity, sales, and margins.

Get Campbell's alerts:

Buy and Hold CPB for Its 7% Yield and Deep ValueThe primary thesis for CPB investment is the dividend and its durability. The company is a high-yielding stock trading at a multi-decade low and is attractive in that regard. The 7% yield is well above inflation and expected to increase over time, albeit at an irregular pace and timing. Details from the fiscal Q3 release suggest the payment is not in any danger.

While the payout ratio relative to adjusted earnings is a bit high, near 85%, it's not unusual for high-quality consumer staples stocks to pay so much.

Looking ahead, investors shouldn’t anticipate another distribution increase until at least calendar 2028. The company is in fine financial health, has ample cash flow, and poses little threat in that regard, but will likely choose to preserve cash flow until growth resumes. Share buybacks are also part of the equation, but only in token amounts, offsetting dilutive impacts and little else.

Value is another reason to own this stock. The 7% yield comes at a value compared to peers, trading at approximately 10X this year’s earnings and approximately 3X the 10-year forecast. Snacking and Meals peers such as Mondelez International NASDAQ: MDLZ, PepsiCo NASDAQ: PEP, and Hershey NYSE: HSY trade at double the valuation in both metrics, suggesting substantial upside over time and more, assuming management can unlock business value.

Analysts' Sentiment Poised for Shift: Institutions Buy Into Value PropositionAnalyst trends align with CPB’s market decline, including numerous downgrades and price target reductions over the past 12 months. However, with the stock trading near the analysts’ low-end target, a business recovery anticipated, and better-than-expected FQ3 results, the odds are high that the downtrend will end. The question is when an uptrend in sentiment will begin, and that won’t be until business reverts to growth and traction is seen in the results.

Price action will likely wallow at or near current lows until business traction is regained, with $19.65 as the critical support target. $19.65 aligns with the low set in December 2022, nearly 24 years ago. A move below it is not expected, but is possible. The likely outcome is a quick price rebound, as indicated by trading volume and institutional trends.

CPB stock market volume has increased as price action approached the critical support level, coincident with ramping institutional activity. Institutions provide strong support, own approximately 50% of the stock, and have accumulated shares quarterly for years. Activity in early 2026 reflects an aggressive $8-to-$1 pace of accumulation; the fiscal Q3 report provided no reason for them to stop.

The primary catalyst this year will be the stabilization of volumes and margins. Volume fell across segments last quarter, with profitability down in both segments. Premium expansion and product innovation will be critical to the company’s success. A new partnership with Buffalo Wild Wings is expected to reinvigorate interest in soup among younger demographics, and premium products, such as Rao’s sauces, should help margins. In the longer term, macroeconomic headwinds are the critical factor, impairing not only consumer choices but volume.

What the market gets wrong about Campbell’s Soup Company is thinking that near-term headwinds will impair the dividend quality. The company’s brand power provides a moat, and its dividend strength has been mispriced. In the current environment, CPB stock can rise on the back of improving sales and economics, or value and yield as the broader economy struggles. Additionally, it's a low-beta stock with the worst already priced in, providing some insulation for potential index volatility as the summer progresses. No matter how you look at it, Campbell’s stock is a win-win for investors.

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