Track market-moving stories before they get noisy

Campbell's just made its most painful dividend decision in over two decades, and the debt load behind it raises a bigger question about whether even the new, smaller payout can survive what's coming in 2027.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Campbell’s (NASDAQ:CPB | CPB Price Prediction) cut its quarterly dividend 36% from $0.39 to $0.25 per share on September 3, 2026 to pay down debt faster. The new $1.00 annualized payout yields about 5.3%. The stock is down 35.08% over the past year. The real question is whether the smaller payout will hold.

Chief Executive Mick Beekhuizen addressed the cut directly on the earnings call:

“Reducing the dividend is obviously a difficult decision, but it’s an unfortunately necessary decision that we needed to take.”

Smaller Dividend Is Much Easier to Cover In fiscal 2026, Campbell’s generated $1.039 billion in operating cash flow and spent $361 million on capital expenditures, leaving about $678 million of free cash flow. Dividends took $470 million, or roughly 69% of it, leaving little for debt reduction.

At the new rate, the dividend costs about $298 million per year, roughly 44% of last year’s free cash flow. Management expects fiscal 2027 adjusted EPS of $1.65 to $1.80, so the dividend would take between 56% and 61% of earnings. In the fourth quarter, operating cash flow was only $200 million while capex was $291 million.

Acquisition Debt Forced the Cut Total debt reached $7.137 billion at fiscal year-end, up from $4.689 billion in fiscal 2023 before the Sovos (Rao’s) acquisition. Debt stands at about 4.4 times EBITDA of $1.62 billion. The company holds just $394 million in cash. Bills due within a year total $3.336 billion, more than the $2.72 billion of current assets. CFO Todd Cunfer said fiscal 2027 interest expense will rise about $25 million. A $500 million bond comes due in March, and a second La Regina payment is due May 4, 2027.

Snacks Are Shrinking While Soup Holds Up In the fourth quarter, Meals & Beverages increased organic sales 3% while Snacks fell 6% with operating earnings down 34%. Management expects fiscal 2027 organic sales to fall 4% to 2%. Campbell’s raised prices on about 60% of its portfolio and plans for elasticity of 1.5 times, expecting lower volume.

“We need to protect those margins. We need to take some unfortunate pricing activities to make the math work on our P&L.”

Other packaged food companies face similar pressure. General Mills (NYSE:GIS) yields 7.58% with trailing EPS of -$1.64. Kraft Heinz (NASDAQ:KHC) yields 7.33% with trailing EPS of -$2.89 and cut its dividend in 2019. Both still pay yields above 7% while reporting GAAP losses. Campbell’s has adjusted its payout to match its finances.

Verdict: Safe at $0.25, but Don’t Count on Raises The new dividend is safe, using well under half of last year’s free cash flow. Raises are unlikely until debt goes down and everything settles. The quarterly payment reached $0.39 in January 2025, but that progress is gone. Watch adjusted EPS against the $1.65 bottom of guidance. Inflation at 5% to 6% and weakening Snacks could pressure earnings below that floor, threatening safety.

Contact [email protected] for any questions or corrections.

3.14K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

MAC Alpha Capital Management LP lifted its holdings in shares of The Campbell’s Company (NASDAQ:CPB – Free Report) by 25.4% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 284,545 shares of the company’s stock after buying an additional 57,631 shares during the period. Campbell’s accounts for approximately 1.3% of MAC Alpha Capital Management LP’s holdings, making the stock its 12th biggest position. MAC Alpha Capital Management LP owned 0.10% of Campbell’s worth $6,337,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Dimensional Fund Advisors LP grew its holdings in shares of Campbell’s by 23.3% during the first quarter. Dimensional Fund Advisors LP now owns 10,239,231 shares of the company’s stock valued at $228,026,000 after purchasing an additional 1,933,814 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Campbell’s by 3.2% in the 4th quarter. Bank of New York Mellon Corp now owns 3,048,098 shares of the company’s stock worth $84,951,000 after purchasing an additional 93,912 shares during the last quarter. Cerity Partners LLC lifted its holdings in shares of Campbell’s by 190.3% in the 4th quarter. Cerity Partners LLC now owns 2,680,839 shares of the company’s stock worth $74,715,000 after purchasing an additional 1,757,264 shares during the last quarter. First Trust Advisors LP boosted its position in Campbell’s by 35.0% during the 1st quarter. First Trust Advisors LP now owns 2,820,793 shares of the company’s stock valued at $62,819,000 after purchasing an additional 731,393 shares during the period. Finally, Lazard Asset Management LLC acquired a new position in Campbell’s during the 1st quarter valued at approximately $61,261,000. Institutional investors and hedge funds own 52.35% of the company’s stock.

Analyst Upgrades and Downgrades CPB has been the subject of a number of recent research reports. Morgan Stanley lowered their price objective on Campbell’s from $23.00 to $21.00 and set an “equal weight” rating for the company in a research note on Friday, June 5th. Evercore set a $21.00 price target on shares of Campbell’s in a report on Monday, September 14th. UBS Group boosted their price target on shares of Campbell’s from $18.00 to $19.00 and gave the company a “sell” rating in a report on Friday, September 4th. Wall Street Zen lowered shares of Campbell’s from a “hold” rating to a “sell” rating in a research report on Saturday, September 5th. Finally, Zacks Research cut shares of Campbell’s from a “hold” rating to a “strong sell” rating in a report on Wednesday, September 9th. Twelve equities research analysts have rated the stock with a Hold rating and seven have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $19.88.

Get Our Latest Analysis on CPB Campbell’s Price Performance Shares of CPB opened at $20.69 on Monday. The Campbell’s Company has a one year low of $19.56 and a one year high of $34.17. The stock’s fifty day moving average is $22.45 and its 200-day moving average is $21.89. The company has a debt-to-equity ratio of 1.60, a quick ratio of 0.33 and a current ratio of 0.82. The firm has a market capitalization of $6.17 billion, a price-to-earnings ratio of 15.79, a price-to-earnings-growth ratio of 2.43 and a beta of 0.03.

Campbell’s (NASDAQ:CPB – Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.39 earnings per share for the quarter, hitting the consensus estimate of $0.39. The business had revenue of $2.14 billion during the quarter. Campbell’s had a net margin of 4.04% and a return on equity of 16.44%. The business’s revenue for the quarter was down 7.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.62 EPS. Campbell’s has set its FY 2027 guidance at 1.650-1.800 EPS. Equities analysts anticipate that The Campbell’s Company will post 1.7 EPS for the current year.

Campbell’s Cuts Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 1st will be issued a $0.25 dividend. The ex-dividend date is Thursday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 4.8%. Campbell’s’s dividend payout ratio (DPR) is 119.08%.

Trending Headlines about Campbell’s Here are the key news stories impacting Campbell’s this week:

Positive Sentiment: Zacks Research raised several quarterly EPS estimates, including Q3 2027 to $0.44 from $0.43, Q4 2027 to $0.42 from $0.39, Q3 2028 to $0.47 from $0.46, and Q4 2028 to $0.46 from $0.43. These increases suggest some expectations for earnings resilience in selected periods. Zacks Research Campbell’s earnings estimates Neutral Sentiment: Deutsche Bank maintained its Hold rating on Campbell’s, indicating no change in its view and limited evidence of an imminent catalyst to drive a stronger revaluation. Deutsche Bank Hold rating Neutral Sentiment: Campbell’s extended a credit facility of approximately $1.85 billion. The agreement supports financial flexibility and refinancing capacity, although the company’s existing leverage and weak liquidity ratios remain considerations for investors. Campbell’s credit facility extension Negative Sentiment: Zacks Research cut its FY2027 EPS forecast to $1.71 from $1.92 and its FY2028 estimate to $1.86 from $2.07. It also reduced Q2 2027 EPS to $0.43 from $0.46 and Q2 2028 EPS to $0.44 from $0.51. Zacks retains a Strong Sell rating, reinforcing concerns about Campbell’s longer-term earnings trajectory. Zacks Research Campbell’s EPS revisions Campbell’s Company Profile (Free Report)

Campbell’s (NASDAQ: CPB) is a branded food company that develops, produces and markets packaged meals, beverages and snacks. Its portfolio includes soups, sauces, pasta products, frozen meals, dips, crackers, cookies and yogurt.

The company’s brands include Campbell’s, Goldfish, Pepperidge Farm, V8, Prego, Pace, Swanson, Rao’s, Michael Angelo’s and noosa. Products are sold primarily through grocery stores, mass merchants, club stores, convenience stores, food-service distributors and e-commerce channels.

Founded in 1869 by Joseph A.

Featured Stories Five stocks we like better than Campbell’s NVIDIA Just Named AI’s Next Bottleneck—And These 3 Stocks Sit Right In It Gold Has Gone Sideways, But These 3 Stocks Haven’t The AI Bottleneck Is Not Chips Anymore and 3 Pipeline Stocks Are Cashing In These 3 Stocks Under $20 Have Wall Street Looking Past the Share Price

Receive News & Ratings for Campbell's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Campbell's and related companies with MarketBeat.com's FREE daily email newsletter.

A yield above 6% gets attention, but the real question is whether the cash flow behind it survives the next quarter. Four names on this list pass that test, and one very recognizable brand just proved what happens when the answer is no.

In this article series, I summarize dividend announcements of the past week. This week, 5 stocks announced dividend increases, one announced a cut, and one announced a special. BRC and PECO are the only Investment Grade stocks among this week's dividend announcers, both trading near fair value with robust safety profiles. CPB's 35.90% dividend cut signals severe safety deterioration, while VICI and LAMR present high yields but carry notable safety and growth concerns.

The Campbell's Company (CPB) Presents at Barclays 19th Annual Global Consumer Staples Conference Transcript

Campbell's said it has cut 13% of its salaried workforce and closed two snack plants in an effort to improve its operations and return to profitability.

"Make no mistake, our results remain unacceptable," CEO Mick Beekhuizen said. "But instead of waiting for the environment to improve around us, we are addressing reality head-on."

The company has 4,300 salaried workers, according to The Wall Street Journal. It had approximately 13,700 full-time and part-time employees as of August 2025, according to a filing with the Securities and Exchange Commission.

UBER TO CUT THOUSANDS OF JOBS IN SWEEPING RESTRUCTURING EFFORT

Cans of Campbell's chicken noodle soup for sale are displayed at a store on July 22, 2026, in Washington, D.C. (Kevin Carter/Getty Images)

Consumer goods companies have increasingly faced resistance from budget-conscious shoppers, particularly lower-income households that have gravitated toward cheaper, private-label and value brands.

Despite this, Campbell's has raised prices in recent years to protect its margins against rising costs of raw materials, logistics and investments behind soup and sauce launches and holiday merchandising programs.

MICROSOFT CUTS 4,800 POSITIONS, INSISTS JOBS 'NOT BEING REPLACED BY AI'

The company has implemented average price increases of 4% to 5% across roughly 60% of its portfolio, with benefits expected to begin flowing through in the second quarter, even as sales take a hit, CFO Todd Cunfer said on a call with analysts.

The company said it plans to generate about $500 million in cost savings by fiscal 2030.

Campbell's soup at a supermarket in Hercules, Calif., Dec. 8, 2025 (David Paul Morris/Bloomberg via Getty Images / Getty Images)

"With this program, we are focused on increasing speed and accountability and improving our margins and cash flow," Beekhuizen said.

Campbell's expects fiscal 2027 net sales to decline 2% to 4%, compared with analysts' expectations for a 0.8% drop, according to data compiled by LSEG. It forecast adjusted earnings per share of $1.65 to $1.80, below estimates of $1.86.

TOP TOBACCO COMPANY TO CUT THOUSANDS OF JOBS

Net sales fell 8% to $2.14 billion in the fourth quarter, slightly missing estimates of $2.15 billion, while adjusted earnings per share of 39 cents were in line with expectations.

Ticker Security Last Change Change % CPB THE CAMPBELL'S CO. 21.38 -0.74 -3.37% Volumes in the company's snacks segment fell 6%, while prices rose 1%. For its meals and beverages segment, where prices remained the same, volumes rose 3%.

"Our priorities are clear: return Campbell’s to a sustainable, long-term value creation model, reduce financial risk and maintain our investment-grade credit rating," Beekhuizen added.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Reuters contributed to this report.

Campbell’s Co (NASDAQ:CPB) on Thursday reported worse-than-expected fourth-quarter sales results and issued FY27 adjusted EPS guidance below estimates.

Adjusted EPS of 39 cents was in line with estimates. Sales of $2.137 billion missed the $2.146 billion consensus estimate.

For fiscal 2027, Campbell’s expects adjusted EPS of $1.65 to $1.80, below the $1.85 analyst estimate. The company expects organic net sales in Meals & Beverages to decline about 3% at the midpoint in the first quarter. It expects performance to remain relatively consistent throughout the year.

“Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds,” said Mick Beekhuizen, Campbell’s President and Chief Executive Officer. “Our performance is not where it needs to be, and we are taking decisive action to improve it.”

Campbell’s shares fell 2.9% to trade at $21.48 on Friday.

These analysts made changes to their price targets on Campbell’s following earnings announcement.

Jefferies analyst Scott Marks maintained the stock with a Hold and lowered the price target from $22 to $20. Barclays analyst Andrew Lazar maintained the stock with an Underweight rating and cut the price target from $19 to $18. UBS analyst Peter Grom maintained the stock with a Sell and raised the price target from $18 to $19. RBC Capital analyst Nik Modi maintained the stock with a Sector Perform and cut the price target from $21 to $19. Trending

Considering buying CPB stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

For the first time in a quarter century, Campbell's touched a dividend it had sworn off, and the culprit is sitting in the snack aisle. Here is what broke the math on a payout that survived recessions, inflation, and two…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Campbell’s (NASDAQ:CPB | CPB Price Prediction) reported Q4 fiscal 2026 results before the open on September 3, 2026, and the headline is the payout. Campbell’s cut its quarterly dividend 36% to $0.25 per share, the first cut since October 2001, and a return to what shareholders received back in 2009. Shares closed at $22.13, down 7% on the day.

A 155-Year-Old Icon Rewrites Its Income Story Campbell’s had paid $0.39 a quarter for over a year. The new $0.25 payout, with a record date of October 1, 2026 and a payment date of November 2, 2026, is designed to accelerate debt reduction and strengthen the balance sheet. I’ve been watching consumer staples dividends for more than a decade, and a cut of this size from a name this old is a signal.

Meals and Beverages Is the Lone Bright Spot Meals & Beverages held up. Revenue landed at $1.187 billion with organic sales up 3%, helped by durable at-home cooking trends. On the call, management noted that a little over 50% of Meals and Beverages retail sales are exposed to cooking, growing at a CAGR of about 5% over the past four years. Rao’s continues to punch above its weight. The adjusted result was fine on the surface: adjusted EPS of $0.39 versus $0.3889 expected.

The Snack Aisle Broke the Dividend Snacks is where it fell apart. Segment revenue was $950 million, down 12%, with organic sales off 6% and segment operating earnings down 34%. Campbell’s also took a $117 million impairment on the Cape Cod and Kettle Brand trademarks, dragging GAAP EPS to a loss of $0.23. CFO Todd Cunfer was blunt about the near term, telling analysts Q1 Snacks would be “high single digits down” with “a pretty large fixed cost deleverage”. The Snacks portfolio Campbell’s built through acquisitions is exactly what forced the payout reset.

Numbers Tell the Story Adjusted EPS: $0.39 vs. $0.3889 expected GAAP EPS: $(0.23) Revenue: $2.137B vs. $2.144B expected, down 7.9% YoY Gross profit: $583M, down 17.3% Operating income: $4M, down 99% Cash & equivalents: $394M The number that matters is Snacks operating earnings. That is the line that dictated the dividend math.

Beekhuizen Owns the Reset CEO Mick Beekhuizen did not soften the message. “Our performance is not where it needs to be, and we are taking decisive action to improve it,” he said, citing “resetting our dividend” as part of strengthening the balance sheet. On the call, he called the cut “a difficult decision, but… an unfortunately necessary decision”. I liked that he did not dress it up.

The Forward Hook for Income Holders Fiscal 2027 guidance calls for adjusted EPS of $1.65 to $1.80, a decline of 24% to 17%, with net sales down 4% to 2%. Management is targeting a $500 million cost savings program through fiscal 2030 and a potential hybrid refinancing of the $500 million bond maturing in March. If you own CPB for income, the question is whether Snacks can stabilize before the next reset conversation begins.

A double-digit yield or a decades-long payout streak can mask a payout the business can no longer support, which is exactly the pattern we broke down in a free dividend trap guide.

Contact [email protected] for any questions or corrections.

The Campbell's Company (CPB) Q4 2026 Earnings Call Transcript

Key Takeaways Campbell's Q4 EPS fell 37% to 39 cents as sales declined 8%, and both missed estimates. Snacks organic sales fell 6%, while Meals & Beverages organic sales rose 3% on favorable volume/mix. Campbell's targets $500 million in cost cuts by fiscal 2030 as inflation and logistics costs stay elevated. The Campbell's Company (CPB - Free Report) closed fiscal 2026 with continued operating pressure as elevated inflation and Snacks’ weakness outweighed momentum in Meals & Beverages.

Adjusted earnings for the fiscal fourth quarter were 39 cents per share, down 37% year over year and lagging the Zacks Consensus Estimate of 40 cents. Net sales declined 8% to $2,137 million and missed the consensus mark of $2,152 million. Organic sales fell 1%, primarily due to lower volume/mix.

CPB's Margins Remain Under PressureAdjusted gross profit declined 14% to $611 million. Adjusted gross margin contracted 190 basis points to 28.6%, mainly due to cost inflation and other supply-chain costs, including tariffs. Supply-chain productivity improvements partially offset these pressures.

Adjusted marketing and selling expenses decreased 6% to $186 million, while adjusted administrative expenses fell 3% to $153 million. Adjusted EBIT declined 25% to $242 million, with adjusted EBIT margin falling to 11.3% from 13.8% a year earlier. The additional week in the prior-year quarter had an estimated 8% impact on adjusted EBIT.

Campbell's Q4 Segment Performance Shows Mixed TrendsMeals & Beverages net sales decreased 4% to $1,187 million, while organic net sales increased 3% on 3% favorable volume/mix. Organic growth included an estimated two-point benefit tied to the prior-year Sovos Brands ERP implementation. Segment operating earnings declined 12% to $181 million, primarily due to inflation and other supply-chain costs.

Snacks’ net sales fell 12% to $950 million, with organic net sales declining 6% as an unfavorable volume/mix of 6% outweighed a 1% favorable net price realization. Segment operating earnings dropped 34% to $101 million. Salty snacks retail sales declined 7.8%, while core Goldfish consumption returned to growth. Rao's remained a bright spot in Meals & Beverages, with total consumption up 9.6% in the quarter.

CPB Expands Cost-Savings and Pricing ActionsCampbell's is launching an enterprise-wide program targeting $500 million in cost reductions by fiscal 2030. The company generated about $25 million in savings during the fiscal fourth quarter, bringing cumulative savings under its prior program to approximately $225 million.

Several measures are already underway, including plant closures and workforce reductions that lowered the salaried workforce by approximately 13%. For fiscal 2027, management expects more than $100 million in savings and productivity above 4% of the cost of products sold. CPB also plans targeted pricing actions to help offset persistent input-cost pressure.

Campbell's Cash Flow and Balance Sheet Stay in FocusFiscal 2026 operating cash flow totaled $1,039 million compared with $1,131 million in the prior year. Capital expenditures were $361 million, while the company returned $496 million to its shareholders, primarily through dividends.

Campbell's ended fiscal 2026 with $394 million in cash and cash equivalents. Short-term borrowings were $977 million and long-term debt totaled $6,160 million. Net leverage reached 4.3 times. To accelerate debt reduction, the board reduced the quarterly dividend to 25 cents per share from 39 cents, which is expected to lower annual cash outflows by approximately $170 million.

CPB's FY27 Outlook Reflects Cost ChallengesFor fiscal 2027, Campbell's expects net sales and organic net sales to decline 2-4%. Adjusted EBIT is projected to decrease 7-12%, while adjusted earnings are expected in the range of $1.65-$1.80 per share, representing a decline of 17-24%. The La Regina acquisition is expected to contribute modestly to sales and be broadly neutral to adjusted earnings.

The outlook assumes raw-material and packaging inflation of 5-6%, double-digit logistics inflation and a low-single-digit benefit from net pricing. Total operating expenses are expected to decline slightly on a dollar basis, including an approximately $50 million impact from resetting incentive compensation levels

Campbell's Expects a More Pressured Start to FY27Management expects first-quarter fiscal 2027 organic net sales and profit declines to fall below the lower end of the full-year ranges, reflecting continued Snacks weakness and heavier investment behind innovation and holiday activity in Meals & Beverages. Fiscal first-quarter adjusted EBIT margin is projected at approximately 10%.

Performance is expected to improve after the first quarter as productivity, savings and pricing contributions build through the year. Adjusted net interest expense is projected at $345-$350 million, while capital expenditures are expected to be approximately $300 million.

Shares of the Zacks Rank #4 (Sell) company have tumbled 27.2% over the past year compared with the industry’s decline of 16.3%.

Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.

Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

For the quarter ended July 2026, Campbell's (CPB - Free Report) reported revenue of $2.14 billion, down 7.9% over the same period last year. EPS came in at $0.39, compared to $0.62 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.15 billion, representing a surprise of -0.68%. The company delivered an EPS surprise of -2.5%, with the consensus EPS estimate being $0.40.

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: $1.19 billion versus $1.19 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -1.3% change.Net Sales- Snacks: $950 million versus $954.75 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -15.1% change.Operating Earnings- Meals & Beverages: $181 million compared to the $175.84 million average estimate based on four analysts.Operating Earnings- Snacks: $101 million versus $99.38 million estimated by four analysts on average.Operating Earnings- Corporate: $-226 million versus the three-analyst average estimate of $-41.67 million.View all Key Company Metrics for Campbell here>>>

Shares of Campbell have returned +3.2% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Campbell's (CPB.O) forecast weaker-than-expected annual profit and sales on Thursday and cut its quarterly dividend by more than a third as the soup maker struggles with soft demand ​for its pricier snacks, sending its shares down 6% before the bell.

The company ​said it had closed some plants and completed some workforce cuts to ⁠support margins as part of a program to save about $500 million in costs by ​fiscal 2030.

"Our results remain unacceptable," CEO Mick Beekhuizen said, adding that Campbell's will be "addressing reality ​head-on." The company will also adjust prices in some categories to reflect changes in commodity costs, he said.

"(Campbell's) is clearly taking a much more aggressive self-help stance," Barclays analyst Andrew Lazar said.

Lower-income consumers are ​shifting toward cheaper value brands and store-label products, pressuring sales at companies including Campbell's ​that have raised prices in recent years to protect their margins.

A 10.75-ounce can of Campbell's tomato soup ‌costs $1.48 ⁠on Walmart's website, while a 10.75-ounce tomato soup can from Walmart's private-label brand Great Value costs 70 cents, according to Reuters checks.

Campbell's expects fiscal 2027 net sales to fall between 2% and 4%, compared with analysts' estimate of a 0.8% drop, according to data compiled ​by LSEG.

It expects fiscal 2027 ​adjusted profit per ⁠share in the range of $1.65 to $1.80, compared with analysts' estimate of $1.86 per share as higher costs of raw material and fuel weigh.

The forecast ​reflects a volatile environment with elevated inflation, but sees benefits that ​are expected ⁠to support margins, Campbell's said.

Net sales fell 8% to $2.14 billion in the fourth quarter, steeper than analysts' average estimate of a 7.6% drop. Adjusted earnings per share of 39 cents were ⁠in ​line with analysts' estimates.

Volumes in the company's snacks segment ​fell 6%, while prices rose 1%. For its meals and beverages segment, where prices remained the same, volumes rose ​3%.

Campbell's swung to a loss and logged lower sales in the latest quarter, hurt by higher costs that weighed on margins as well as softer demand.

The Campbell’s Company (NASDAQ:CPB) will release its fourth quarter earnings report before the opening bell on Thursday, Sept. 3.

Analysts expect the Camden, New Jersey-based company to report quarterly earnings of 39 cents per share, down from 62 cents per share in the year-ago period. The consensus estimate for Campbell’s quarterly revenue is $2.14 billion. It reported $2.32 billion last year, according to Benzinga Pro.

On June 8, Campbell’s posted mixed results for the third quarter.

Shares of Campbell’s rose 0.3% to close at $23.78 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

RBC Capital analyst Nik Modi maintained a Sector Perform rating with a price target of $21 on Aug. 31, 2026. This analyst has an accuracy rate of 52%. Evercore ISI Group analyst David Palmer maintained an In-Line rating and cut the price target from $23 to $22 on Aug. 31, 2026. This analyst has an accuracy rate of 65%. UBS analyst Peter Grom maintained a Sell rating and raised the price target from $17 to $18 on Aug. 20, 2026. This analyst has an accuracy rate of 59%. TD Cowen analyst Robert Moskow maintained a Hold rating and increased the price target from $20 to $22 on Aug. 19, 2026. This analyst has an accuracy rate of 64%. JP Morgan analyst Thomas Palmer maintained a Neutral rating and increased the price target from $20 to $22 on Aug. 18, 2026. This analyst has an accuracy rate of 51%. Trending

Considering buying CPB stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Wall Street analysts expect Campbell's (CPB - Free Report) to post quarterly earnings of $0.40 per share in its upcoming report, which indicates a year-over-year decline of 35.5%. Revenues are expected to be $2.15 billion, down 7.3% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 2.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Campbell metrics that are commonly monitored and projected by Wall Street analysts.

Analysts' assessment points toward 'Net Sales- Meals & Beverages' reaching $1.19 billion. The estimate indicates a year-over-year change of -1.1%.

The consensus among analysts is that 'Net Sales- Snacks' will reach $954.75 million. The estimate indicates a change of -14.7% from the prior-year quarter.

Analysts forecast 'Operating Earnings- Meals & Beverages' to reach $175.84 million. The estimate compares to the year-ago value of $200.00 million.

The consensus estimate for 'Operating Earnings- Snacks' stands at $99.38 million. Compared to the current estimate, the company reported $159.00 million in the same quarter of the previous year.

View all Key Company Metrics for Campbell here>>>

Shares of Campbell have experienced a change of +6.4% in the past month compared to the +3.9% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), CPB is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

CAMDEN, N.J.--(BUSINESS WIRE)--The Campbell's Company today announced a renewed and expanded partnership with the National Football League (NFL), extending a relationship that began in 1997 when Campbell's® became the League's Official Soup Sponsor. Now entering its 29th year, the partnership is expanding for the first time into frozen meals – the next chapter in one of the NFL's longest-running sponsorships. At the center of the renewal is Campbell's Chunky®, the brand synonymous with game day.

The soup has gone cold, or at least that's what The Campbell's Company (CPB +1.73%) stock has felt like over the past few years. Shares of Campbell's have fallen nearly 30% in the past 12 months, and almost 50% over the last five years. The bear case is simple: Sales are falling, margins are compressing, and tariffs created an unexpected headwind for the business. Still, I think this more than a century-old consumer staples company is a buy for long-term investors. 

Today's Change

(

1.73

%) $

0.40

Current Price

$

23.26

First, at the current share price, Campbell's dividend yield is nearly 7%. It offers a consistent quarterly payout of $0.39 per share. Campbell's funds its dividend with stable cash flow from operations. The consumer staples company reported $839 million in cash generated over the first nine months of its fiscal 2026. Despite tough economic conditions, the dividend isn't at risk.

The stock is also relatively cheap, as it trades at a forward P/E of 12, a trailing P/E ratio of 11, and a PEG ratio of less than 1. In June, Campbell's was added to both the Russell 2500 and Russell 2500 Value indexes, potentially improving investor confidence and visibility.

Image source: Getty Images.

More importantly, Campbell's management has a turnaround effort underway. The company bought Sovos Brands, the owner of the hugely popular Rao's Homemade sauce and pasta brand, back in 2024, and took a 49% stake in La Regina -- the company that manufactures Rao's products -- late in 2025. This has been a growth bright spot for Campbell's. Rao's recently topped $1 billion in annual net sales.

Management is well aware of the inflationary pressures it faces and the company's overall underperformance, and is taking corrective actions to improve Campbell's operational efficiency.

Campbell's looks oversold in my opinion, and with the continued growth of the much-loved Rao's brand, as well as a portfolio that includes some timeless snacks like Pepperidge Farm cookies and Goldfish crackers, Campbell's is primed for a comeback.

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

crash of the stock exchanges

getty

500 out of 500.

Do you know what that is? That, amazingly, is the number of stocks in the S&P 500 that the consensus says should be bought or held today. A perfect 500 out of 500.

Wow, so let’s do some “back of the envelope math.” There are 500 stocks in the index. And, let’s see, 500 should be bought or held. Which leaves…let’s see…zero sells.

Zero!

Meanwhile we have unprecedented business model disruption from the massive AI rollout. Biggest thing since the Internet or maybe even the railroads. Fortunes are being minted and vaporized with equal speed right before our very eyes.

And there are no sells in the S&P 500! According to the, ahem, compensated analysts that rate them. Simply astounding. Wouldn’t you think that one or two companies—maybe, just possibly—could be sells today? Nope, not at all.

Also get this. Would you believe that out of those 500, 410 are actual buys, which means you should put your new money into 82% of the index? Close your eyes and buy. Ha!

Does that feel right to you? Feels a bit slippery to me. Almost like analysts are handing out buy ratings like cheap business cards at a trade show.

MORE FOR YOU

No Sell Ratings

Contrarian Outlook

Analysts can keep their Buy calls. They are worth diddly squat. But a Sell call! Now we’re talking. They’re not there en masse but we can find some individual Sell calls to, get this, fade.

4 Hated Dividend StocksThat’s right, we’re going dumpster diving for dividend payers with rare Sell ratings—so that we can step in and buy. How contrarian! And right now, Wall Street sees plenty of weakness in these five 6.4% to 12.9% payers, which average 8.9%. Let’s see if there’s opportunity.

General Mills (GIS)
Dividend Yield: 6.4%

General Mills (GIS) is best known for cereal brands such as Cheerios, Wheaties and Cocoa Puffs, Betty Crocker and Pillsbury baking products, and Häagen-Dazs ice cream—products that are squarely in the crosshairs of GLP-1 drugs, which suppress the urge to snack. Those drugs are on the rise, too. According to a Gallup analysis, 11% of Americans say they’re currently taking GLP-1 drugs for weight loss, which is up from 3% just two years ago.

And while GLP-1s can’t take full credit for it, General Mills’ top and bottom lines have been on a downswing for a couple years and are expected to dip more in 2026.

GIS Total Returns

Ychart

This change in fortunes has sent shareholders to the exits, cutting the stock by more than half over the past three years.

So is there reason enough to bite on what is a 6%-plus yield on one of the most recognizable consumer staples stocks?

GIS is more than just snacks—it also sells Progresso soups, Green Giant vegetables, even Blue Buffalo pet foods. And it’s trying to adjust to GLP-1 usage by adding more premium snacks and smaller packages aimed at the munchie-deficient.

But inflation is forcing many consumers to trade down, not up. So even though General Mills has eased up on the price hikes that had been driving sales, volume growth is still anemic. And despite a lack of growth, a 50%-plus haircut and a stretched dividend with little room for meaningful growth, shares still trade at 12 times next year’s earnings estimates—not exactly the deal we’d need to jump into such a troubled company.

I said months ago I don’t like General Mills. Nothing since has changed my mind. Wall Street doesn’t love it, either—12 Holds and as many Sells (4) as Buys is for all practical purposes a bearish outlook from the traditionally Pollyannaish research set.

The Campbell’s Company (CPB)
Dividend Yield: 6.9%

Fellow consumer staple name The Campbell’s Company (CPB) has sold off right alongside General Mills. The result is a nearly 7% yield that’s more than twice its historical norms and virtually unheard of in the sector.

CPB Yield Chart

Ycharts

The story is extremely similar to General Mills:

Campbell’s also owns a number of snack brands, including Pepperidge Farm baked goods, Goldfish and Lance crackers, Cape Cod and Kettle Brand chips, and Pace salsa, among others—that are endangered by GLP-1 usage.It too is more than snacks: CPB also sells its namesake Campbell’s and Chunky soup brands, as well as Prego and Rao’s pasta sauces, Swanson broths, Michael Angelo’s frozen meals, V8 vegetable juice and more.CPB has also recently slowed its pace of price hikes but hasn’t seen a recovery in volumes.Dividend coverage of around 80%, which leaves little room for growth, is about the same as GIS.Campbell’s shares trade for around 12 times weak earnings estimates.The pros don’t like it: It garners mostly Hold calls, and more Sells than Buys.Campbell’s might look a little more appealing than GIS because it pays us a few more basis points and is slightly better positioned to capture a rising trend of Americans cooking at home. But this is still a dangerous yield from a company that’s increasingly on the wrong side of consumer tastes.

Ardagh Metal Packaging (AMBP)
Dividend Yield: 8.0%

Ardagh Metal Packaging (AMBP) has a lot for contrarians like us to love.

To start, it’s boring: Ardagh makes metal cans. This is a truly global company, boasting 23 production facilities in nine countries. It employs 6,500 people. It drove $5.5 billion in revenues last year by selling to makers of soft drinks, energy drinks, sparkling waters, beer, ciders, ready-to-drink cocktails and more. But it’s nothing more than, in its words, “100% infinitely recyclable” cans.

Ardagh is also well off the beaten path. No media hype of which to speak. No CNBC hits.

It pays us dearly, at nearly 8%. And it’s also a welcome exception to a dividend rule. We normally avoid foreign stocks because of their inconsistent payout schedules. However, AMBP, which is based in Luxembourg, has paid a consistent quarterly dividend for several years.

AMBP Total Return

Ycharts

Ardagh, which is 76% owned by Ardagh Group, listed on the NYSE in 2021 by combining with a special purpose acquisition company (SPAC). The stock proceeded to drop like a rock, killing any buzz it might have had. But the company’s top line has been improving for years, and it has flipped from deep losses just a few years ago to modest profits in 2025 that are expected to grow this year and next. That means AMBP was paying dividends it couldn’t cover—the second quarter marked the first time in years that adjusted earnings exceeded the payout. A little nerve-wracking, but Ardagh is headed in the right direction.

Wall Street is almost all Holds and Sells on Ardagh, but the worry is less the business and more the valuation. The stock has roughly doubled from its 2025 lows, and shares now trade at nearly 17 times estimates for next year’s profits.

Brandywine Realty Trust (BDN)
Dividend Yield: 10.3%

Brandywine Realty Trust (BDN) is one of the largest “integrated” (or “hybrid”) real estate investment trusts (REITs) in the U.S. Its full portfolio consists of 112 properties, but its “core” portfolio of 57 properties is largely concentrated in Philadelphia and Austin—and is roughly 90% office in nature.

The pros are effectively split between Holds and Sells, and there’s little wonder why. Office properties, while rebounding, haven’t seen business rebound to anywhere near where they were before COVID. Last year, I pointed out that Brandywine’s funds from operations (FFO) were barely enough to pay for the dividend, and that the “13%-plus yield could be a rug-pull just waiting to happen.”

BDN Total Returns

Ycharts

Brandywine has bounced back a little bit in 2026 as it does some much-needed cleanup. The company is simplifying its joint-venture portfolio and shedding underperforming properties. Occupancy is improving. The dividend cuts clearly hurt existing shareholders, but BDN now yields 10% at a much healthier FFO payout ratio below 60%. And shares trade at just 5.6 times this year’s FFO estimates.

What’s holding Brandywine back is its struggles in leasing out its two development projects. Improvements on that front could finally unlock the stock.

New Mountain Finance Corp. (NMFC)
Dividend Yield: 12.9%

We can always find high yields from business development companies (BDCs), which provide financing to smaller companies.

Take New Mountain Finance (NMFC), for instance. This nearly 13% yielder deals in U.S. upper-middle-market businesses backed by private equity sponsors. First-lien debt is its most common deal type, at roughly 65% of the portfolio currently, but it also has positions in second lien and subordinated debt, preferred stock, common stock, net lease deals, and senior lending programs.

Its portfolio is 113 companies wide right now, and it uses a “defensive growth” strategy, with a focus on investing in strong businesses in a couple dozen acyclical sectors.

NMFC Total Return

Ycharts

Wall Street doesn’t love what NMFC has to offer, giving it nothing but Hold and Sell ratings. New Mountain has been shedding net asset value (NAV), which has declined by more than 12% just since the start of 2025. More important as it pertains to the dividend: Net investment income (NII) has recently fallen off the shelf, forcing the most recent dividend cut to 25 cents per share—which is itself barely covered by the company’s most recent 26 cents’ worth of NII.

However, NMFC might still appeal to speculative dividend chasers. NAV declines are slowing. Credit quality is improving, and non-accruals are thinning. New Mountain is still buying back shares. Meanwhile, NMFC now trades at a nearly 30% discount to its NAV while paying well into the double digits.

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.

Get CPB alerts:

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].

Should You Invest $1,000 in CPB Right Now?Before you consider CPB, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CPB wasn't on the list.

While CPB currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report

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

(

-2.37

%) $

-0.52

Current Price

$

21.47

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.