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(in U.S. dollars unless otherwise noted)

, /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV) (NYSE: FNV) announces the publication of its 2026 Asset Handbook and 2026 Sustainability Report. "Our Asset Handbook provides detailed descriptions of all of our material assets.  We believe it is an essential tool for investors and analysts to evaluate the true potential of our portfolio and to appreciate the extent of the exposure we have to the resource optionality of many of the world's best mineral trends," said Paul Brink, President & CEO. "Our Sustainability Report shows how sustainability considerations are embedded into our decision-making and portfolio oversight, outlines our programs and commitments, and provides a focused view of portfolio–level performance, including key factors at our top producing assets and operators."

Asset Handbook

The 2026 Asset Handbook provides an overview of the portfolio. It describes each of our material assets including their performance to date and outlook. It also provides the underlying Mineral Resources and Mineral Reserves associated with those assets.

Leading gold-focused royalty and streaming company:

Since our 2007 IPO we have achieved a compounded annual growth rate of 17% in total shareholder returns Growth in annual GEOs of 3x and revenue of 12x since 2008 Nineteen consecutive years of dividend increases with approximately $2.8 billion paid Largest and most diversified portfolio of cash-flow producing assets:

121 cash-flow producing assets generated ~$1.66 billion in Adjusted EBITDA1 in 2025 Portfolio well diversified by asset, operator, geography and commodity, no more than 12% of revenue will come from any one asset for 2026 Long-life portfolio with M&I Royalty Ounce Mine Life2 of 34 years and a further 12-year Inferred Royalty Ounce Mine Life2 for our mining assets Strong growth outlook:

Growth driven by recent acquisitions, mine expansions and new mine starts, with the added potential of a restart of Cobre Panama, long-term optionality with interests in a suite of large-scale development projects that would provide added gold, copper and nickel interest and exposure to the exploration success on approximately 72,000km2 on some of the world's great mineral trends No debt, $3.1 billion in available capital and a strong pipeline of opportunities Sustainability Report

Our 2026 Sustainability Report outlines our accomplishments in 2025 and our commitments to further our sustainability-related leadership. Highlights of the report include:

Responsible Capital Allocation:

Ongoing monitoring of sustainability performance across our major assets, with a focus on health and safety, tailings management, communities and Indigenous Peoples, water management and risk, carbon footprint, and biodiversity Community and Industry Contributions:

Continued year–over–year growth in community contributions, made in partnership with operators across multiple jurisdictions and continued support for mining industry organizations and diversity initiatives Good Governance and Shareholder Alignment:

Recognized for the first time as one of Corporate Knights' 2026 Global 100 Most Sustainable Corporations and once again named as one of Corporate Knights' Canada's Best 50 Corporate Citizens for 2025 along with being ranked the number one mining company in The Globe and Mail's 2025 Board Games High level of Board and management share ownership Diversity, Inclusion and Well-Being:

44% diversity among Board members by reason of gender or ethnicity following the 2026 annual meeting Continued expansion of the Franco–Nevada Mining Industry Scholarship program, supporting the development of a more diverse future workforce Climate Action:

Second year of measuring progress against our corporate emissions reduction targets Ongoing focus on emissions reduction initiatives across our global corporate operations, including the successful implementation of a solar panel project at our Barbados office Transparency and Recognition:

Alignment of sustainability-related disclosure with leading reporting standards and frameworks, including SASB, GRI and continued transition to reporting in alignment with IFRS Sustainability Disclosure Standards Recognition from rating agencies, including an improved "AAA" MSCI ESG rating, Global ESG Leader designation from Sustainalytics, and a "Prime" rating from ISS ESG Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.

Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, any ongoing or future audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panamá mine and related arbitration proceedings. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine lives will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Brazilian real, Mexican peso and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; proposed tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption and implementation of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from mineral resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of any ongoing or future audit by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panamá mine or the outcome of any related arbitration proceedings. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date hereof only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

__________________________

1 Adjusted EBITDA is a non-GAAP financial measure with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. Further information relating to this non-GAAP financial measure is incorporated by reference from the "Non-GAAP Financial Measures" section of Franco-Nevada's MD&A for the three months and year ended December 31, 2025 and filed on March 10, 2026 with the Canadian securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with the U.S. Securities and Exchange Commission available on EDGAR at www.sec.gov.

2 As defined in the 2026 Asset Handbook

SOURCE Franco-Nevada Corporation

Tom Albanese appointed Chair

(in U.S. dollars unless otherwise noted)

, /PRNewswire/ - Franco-Nevada realized record financial results in the first quarter of 2026, driven by higher commodity prices, contributions from newly acquired assets, a partial buy-back and a refund from the Canada Revenue Agency. "The sharp rise in oil prices is expected to positively impact our Q2 revenues, while our royalty and streaming model is largely insulated from the impact of energy prices on cost inflation. Franco-Nevada is unique as a mining equity that benefits from rising oil prices. We look forward to further growth from new assets, additional contributions from Cobre Panamá and the potential for a full resumption of the mine", stated Paul Brink, President & CEO.

At today's AGM, David Harquail gave his last address as Chair before taking on the title of Chair Emeritus. The Board thanked David for leading the IPO of Franco-Nevada and for the tremendous shareholder value he created over the ensuing 18 years.

"After almost 40 years of being in the gold royalty business, I would like to thank all of the shareholders, portfolio managers, the analysts and brokers who believed in us and helped make this latest version of Franco-Nevada "the GOLD Investment that WORKS"", commented David Harquail. "In a world confronted by political volatility and financial market instability, having Franco-Nevada as a lower-risk gold investment that is insulated from inflation and with a strong balance sheet is the right business model. I am proud of the wealth that this strategy has generated for our shareholders and that Franco-Nevada today is a financial powerhouse. I am also proud of the strong management team and Board that is in place to continue to deliver decades more of dividends to shareholders."

Following the meeting, Tom Albanese was appointed as the independent non-executive Chair of its board of directors. Tom has most recently served as the Lead Independent Director of Franco-Nevada. He is a seasoned mining executive including prior CEO roles at both Rio Tinto plc and Vedanta Resources plc and many corporate director positions.

Financial Highlights – Q1 2026 compared to Q1 2025

$650.7 million in revenue, +77% – new record. 136,353 GEOs1 sold, +8%. 126,020 Net GEOs1 sold, +11%. $520.4 million in operating cash flow, +80% – new record. Operating cash flow included a $49.5 million refund from the CRA as a result of the settlement reached in September 2025.   $591.9 million ($3.07/share) in Adjusted EBITDA2, +84% – new records. $468.6 million ($2.43/share) in net income, +123% – new records. $458.3 million ($2.38/share) in Adjusted Net Income2, +123% – new records. Adjusted Net Income included $55.1 million, or $0.28 per share, from the Cascabel buy-backs (net of tax).  $3.4 billion in Available Capital3 as at March 31, 2026. GEOs Sold and Revenue

 Quarterly GEOs sold and revenue by commodity

Q1 2026

Q1 2025

GEOs Sold

Revenue

GEOs Sold

Revenue

#

(in millions)

#

(in millions)

PRECIOUS METALS

Gold

91,158

$

436.9

85,523

$

245.9

Silver

23,618

113.5

12,490

37.0

PGM

3,204

17.7

2,610

7.8

117,980

$

568.1

100,623

$

290.7

DIVERSIFIED

Iron ore

3,794

$

17.1

3,888

$

12.4

Other mining assets

1,403

6.1

1,557

4.4

Oil

7,406

33.5

13,494

34.9

Gas

4,579

20.6

4,499

17.3

NGL

1,191

5.3

2,524

5.8

18,373

$

82.6

25,962

$

74.8

GEOs and revenue from royalty, stream and working interests

136,353

$

650.7

126,585

$

365.5

Interest revenue and other interest income

—

$

—

—

$

2.9

Total GEOs and revenue

136,353

$

650.7

126,585

$

368.4

In Q1 2026, we recognized revenue of $650.7 million, an increase of 77% from Q1 2025, and sold 136,353 GEOs, an increase of 8% from Q1 2025. We benefited from record gold and silver prices achieved during the quarter, strong contributions from Antamina, South Arturo, Hemlo, Musselwhite, and incremental contributions from Côté Gold, Porcupine and Valentine, all of which were acquired or commenced production over the past year. We also benefited from an increase in revenue from our Diversified assets, particularly from our Vale iron ore interest, and our Haynesville and Marcellus gas assets.

Precious Metal assets accounted for 87% of our revenue in Q1 2026 (67% gold, 17% silver, and 3% PGM). Revenue was sourced 87% from the Americas (42% South America, 21% Canada, 15% U.S. and 9% Central America & Mexico).

Portfolio Additions

Acquisition of Royalty Portfolio from Victoria Gold Corp.– Canada and U.S.: Subsequent to quarter-end, on April 16, 2026, we closed the previously announced acquisition of a portfolio of six royalties previously held by Victoria Gold Corp. for total cash consideration of $40.0 million (C$55 million). The portfolio includes a 6.0% NSR (subject to a 5.0% buy-back at the operator's election) on Banyan Gold Corp.'s AurMac property and a 1.0% NSR on Banyan Gold's Hyland property, both in the Yukon. The portfolio also includes a milestone payment royalty on i-80 Gold Corp.'s Cove project in Nevada and three additional royalties on earlier stage properties in Nevada and the Yukon. Partial Buy-Backs of Cascabel Stream and NSR – Ecuador: In March 2026, following the acquisition of SolGold plc ("SolGold") by Jiangxi Copper (Hong Kong) Investment Company Limited, for and on behalf of Jiangxi Copper Company Limited ("JCC"), SolGold and JCC exercised their option to buy back 50% of the Cascabel stream and NSR. As a result, Franco-Nevada received the equivalent of $40.7 million (net of the ongoing payment of 20% of spot price per ounce delivered) as a one-time delivery of gold ounces for the buy-back of 50% of the Cascabel stream, and $97.5 million in cash for the buy-back of 50% of the Cascabel NSR. Our acquisition cost (on a proportionate 50% basis) was $23.3 million for the stream and $50.0 million for the NSR. These buy-backs resulted in a gain of $63.8 million recognized in net income and Adjusted Net Income for Q1 2026, but excluded from Adjusted EBITDA. Acquisition of Stream on Casa Berardi Gold Mine – Quebec, Canada: On March 24, 2026, we closed the previously announced acquisition of a $100 million gold stream from Orezone Gold Corporation to support their acquisition of Hecla Mining's producing Casa Berardi gold mine and other Quebec assets, including the Heva-Hosco gold project. Stream deliveries to Franco-Nevada consist of fixed deliveries of 1,625 oz of gold per quarter (6,500 oz of gold per year) for the first five years, with the first delivery received subsequent to quarter-end, on April 15, 2026, followed by variable deliveries of 5.0% of gold produced from Casa Berardi and other Quebec assets, and 2.5% of gold produced from Heva-Hosco. Gold ounces delivered will be subject to an ongoing payment of 20% of spot price. Acquisition of Royalty with i-80 Gold Corp – Nevada, U.S.: On March 16, 2026, we closed the previously announced acquisition of a $250 million NSR from i-80 Gold. The royalty consists of a 1.5% NSR increasing to 3.0% in 2031 on all minerals produced from Granite Creek, the Ruby Hill Property (including Archimedes and Mineral Point), Cove and Lone Tree. Funding of the upfront payment of $225 million was made upon closing, with a further $25 million payable contingent on the incurrence, before the end of 2026, by i-80 Gold of an initial $25 million of budgeted expenditures to advance Mineral Point. Acquisition of Royalty on Bullabulling Gold Project with Minerals 260 Limited – Australia: On February 26, 2026, we closed the previously announced acquisition of a $120 million (A$170 million) gross royalty from Minerals 260 Limited to support its development of the Bullabulling gold project located in Western Australia. The royalty consists of a 1.45% gross royalty over certain tenements on which Franco-Nevada already held a 1.00% royalty and a new 2.45% gross royalty over tenements where Franco-Nevada did not already hold an existing royalty. Upon production of an aggregate 4.0 Moz Au from royalty lands, the royalties, in aggregate, will step down from 2.45% to 1.63%. Additionally, Franco-Nevada subscribed for $35 million (A$50 million) of Minerals 260's ordinary shares at a price of A$0.45 per share. Cobre Panamá Update

Cobre Panamá remains in a phase of Preservation and Safe Management ("P&SM") with production halted. As part of the P&SM plan approved by the government of Panama (the "GOP"), import of energy supplies commenced and Cobre Panamá's power plant was restarted. As of the end of Q1 2026, Units 1 and 2 have been commissioned and synchronized to the national grid, and three coal vessels have been successfully received. Both units of the power plant have demonstrated reliable operation, meeting the power demands of the site and excess energy being sold to the national grid.

The integral audit, carried out by SGS Global, is ongoing, with five interim reports having been published, and the sixth report is expected to be published shortly. The integral audit and final seventh consolidated report are expected to be completed and published in Q2 2026.

Subsequent to quarter-end, on April 7, 2026, the GOP authorized the removal, processing, and export of stockpiled ore currently stored on site at the Cobre Panamá mine pursuant to the P&SM Plan. As a result, First Quantum estimates that Cobre Panamá will produce between 30,000 and 40,000 tonnes of copper in 2026, with the balance to be processed in 2027 for a total of approximately 70,000 tonnes. Based on these estimates, stream deliveries to Franco‑Nevada are expected to total approximately 23,100 gold ounces and 265,000 silver ounces. Deliveries of stream ounces to Franco-Nevada, which are determined based on the sale of copper concentrate by First Quantum under its offtake agreements, are expected to commence in Q3 2026, with the majority of deliveries anticipated in 2027.

Sustainability Updates

During the quarter, we collaborated with the Young Mining Professionals Scholarship Fund to roll-out a dedicated Franco-Nevada Mining Industry Scholarship and, beginning with the 2026/27 academic year, will fund up to C$30,000 annually in renewable, merit-based scholarships for students enrolled in mining related university, college or trade school programs in Canada. During the period, we renewed Franco-Nevada's commitment to Enseña Perú for the 2026/27 campaign in support of educational and community development initiatives in Peru. Subsequent to quarter end, we funded a contribution in partnership with i-80 Gold to support the Boys & Girls Club Early Learning Center in Eureka, Nevada. We continue to rank highly with leading ESG rating agencies, and improved our MSCI ESG rating to "AAA" during the quarter, placing us in the top rating tier.

Available Capital

We had $3.4 billion in Available Capital as at March 31, 2026. This was comprised of $714.7 million in cash and cash equivalents, $1,142.4 million in equity investments and $1.0 billion in unused credit facility with a $500.0 million accordion available directly to Franco-Nevada Corporation. Available credit was further bolstered subsequent to quarter-end by the addition of a second revolving credit facility of $500.0 million with a $250.0 million accordion, entered into by Franco-Nevada International Corporation, our wholly owned subsidiary.

Guidance

The following contains forward-looking statements. For a description of material factors that could cause our actual results to differ materially from the forward-looking statements below, please see the "Cautionary Statement on Forward-Looking Information" section at the end of this news release and the "Risk Factors" section of our most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedarplus.com and our most recent Form 40-F filed with the SEC on www.sec.gov. Our 2026 guidance is based on assumptions including the forecasted state of operations from our assets based on the public statements and other disclosures by the third-party owners and operators of the underlying properties and our assessment thereof.

We remain on track to achieve our 2026 GEO sales guidance of 510,000 to 570,000 ounces, which does not include any potential contributions from Cobre Panamá.

While we expect to benefit from the recent approval of the processing of stockpiled ore at Cobre Panamá, GEO contributions for 2026 are expected to be relatively moderate, with the majority of deliveries anticipated in 2027. First Quantum estimates it will produce approximately 70,000 tonnes of copper from the processing of stockpiled ore. This would result in stream deliveries to Franco-Nevada of approximately 23,100 gold ounces and 265,000 silver ounces.

As a royalty and streaming company, our revenues are largely insulated from the sharp increase in oil prices. Our guidance continues to be based on the commodity price assumptions used at the beginning of the year. Should oil prices remain elevated, we would expect a positive impact on our Energy revenue. An increase of $10 relative to our assumed WTI price of $70 per barrel would be expected to increase oil revenue by approximately 12%. In Q1 2026, oil revenue amounted to $33.5 million. Natural gas liquids, which have seen similar price appreciation, contributed a further $5.3 million.

The following table presents our Q1 2026 actual performance compared to our 2026 guidance.

2026 Guidance (1) (2)

Q1 2026 Actual

Commodity

Gold ounces sold (oz)

360,000 to 400,000

91,158

Silver ounces sold (oz)

4,700,000 to 5,500,000

1,417,077

PGMs ounces sold (oz)

32,000 to 37,000

7,834

Diversified revenue (millions)

$245 to $285

$82.6

GEOs Sold (oz)

510,000 to 570,000

136,353

1

Our 2026 guidance assumes the following commodity prices: $4,500/oz Au, $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 period are calculated based on fixed conversion ratios based on the prices assumed in this 2026 guidance.

2

Our guidance does not reflect any incremental revenue from additional contributions we may make to the Royalty Acquisition Venture with Continental. Our guidance does not reflect any buy-backs which may be elected at the discretion of our operators with the exception of the buy-back of the Cascabel royalty and stream, which occurred in March 2026.

Q1 2026 Portfolio Updates

Precious Metal assets: GEOs sold from our Precious Metal assets amounted to 117,980 GEOs for Q1 2026, an increase of 17% from 100,623 GEOs in Q1 2025. This was primarily due to robust production at Antamina and South Arturo, and contributions from Porcupine and Côté Gold which royalties were acquired in April and June 2025, respectively.

South America:

Candelaria (gold and silver stream) – GEOs sold in Q1 2026 were lower than those sold in Q1 2025, as the prior period quarter included the sale of 3,333 GEOs from inventory held at December 31, 2024. In addition, production at the mine was lower compared to last year, which had the benefit of higher-grade ore from Phase 11. Lundin Mining expects production to be weighted towards H2 2026 when it expects to access higher grade ore from Phase 12. Antapaccay (gold and silver stream) – GEOs sold in Q1 2026 were higher than those sold in Q1 2025, primarily due to mine sequencing and timing of shipments. Antamina (22.5% silver stream) – Silver ounces sold in Q1 2026 were higher than in Q1 2025. The increase in deliveries is attributable to higher silver grades in the current period and timing of shipments. Tocantinzinho (gold stream) – GEOs sold in Q1 2026 were relatively consistent with those sold in Q1 2025. Gold production was lower in the quarter than in previous quarters due to planned processing of lower grade ore. G Mining Ventures expects production to be weighted towards H2 2026 as higher-grade mineralization becomes available in accordance with the mine plan. GEOs sold in the prior year quarter also included the sale of 667 GEOs from inventory held at December 31, 2024. Condestable (gold and silver stream) – There were no GEO deliveries from Condestable during the quarter as the stream transitioned from fixed deliveries to variable deliveries. Variable deliveries for the Condestable stream are due 15 days following the end of each quarter. 3,146 GEOs attributable to the mine's Q1 2026 production period were received in April 2026. This compares to 2,994 GEOs sold in Q1 2025. Yanacocha (1.8% royalty) – GEOs from our Yanacocha royalty were higher in Q1 2026 than in Q1 2025, with strong contributions from the mine which produced 144,000 gold ounces in the current period. Newmont anticipates total production for 2026 of approximately 460,000 gold ounces. Central America & Mexico:

Guadalupe-Palmarejo (50% gold stream) – GEOs sold in Q1 2026 were slightly lower than in Q1 2025, as the prior period quarter included the sale of 2,216 GEOs from inventory held at December 31, 2024. In February 2026, Coeur Mining announced an increase in gold mineral reserves of 40%, extending the mine life by approximately five years. Cobre Panamá (gold and silver stream) – During the quarter, we sold 935 GEOs in connection with the sale of concentrate that had remained on site when production was suspended in November 2023. As a result of the approval of the processing of stockpiled ore at Cobre Panamá, we expect additional stream deliveries of approximately 23,100 gold ounces and 265,000 silver ounces. Deliveries for 2026 are expected to be relatively moderate, with the majority of deliveries anticipated in 2027. Canada:

Côté Gold (7.5% GMR) – GEOs from Côté were lower in Q1 2026 than in Q4 2025, as the mine produced 74,700 gold ounces (100% basis) compared to 87,200 ounces in Q4 2025. Throughput in the quarter was limited by unplanned conveyor downtime. Performance improved in April 2026. In addition, gold production is expected to be more heavily weighted towards H2 2026 based on expected higher grades as determined by the scheduled mine sequence. An updated mineral resource estimate for Côté is planned for Q2 2026, followed by a technical report that is on track by year-end and is expected to outline a larger-scale mine incorporating both the Côté and Gosselin zones. Detour Lake (2% royalty) – Agnico Eagle reported strong production from Detour during the quarter driven by higher availability and productivity of the hauling fleet. Development activities for the underground project continued, with the exploration ramp reaching a depth of 147 metres and overburden removal commencing for the conveyor‑ramp portal. Exploration drilling, which totalled 39,052 metres during the quarter, continued to expand and infill the mineralization below and to the west of the mineral resource pit. Hemlo (50% NPI and 3% NSR) – We earned 5,841 GEOs in Q1 2026, a decrease compared to 6,347 GEOs in Q1 2025. GEOs recognized in the current period included 2,100 GEOs related to Q4 2025. Hemlo Mining Corporation continued to advance several optimization initiatives during the quarter, including transitioning to an owner-operated model, launching a 130,000-metre drill program, and advancing an updated mineral resource estimate and mine plan. Porcupine (4.25% royalty) – In April 2026, Discovery Silver reported strong exploration results at all operations, including multiple high-grade intersections from resource conversion and extension drilling at Hoyle Pond and Borden, favourable drill results within and along strike of current resources at Pamour, and encouraging results from district exploration drilling at Owl Creek. In March 2026, Discovery announced the acquisition of Glencore's Kidd Operations which will provide Discovery with the ability to potentially double production from their Timmins complex. Greenstone (3% royalty) – Equinox Gold reported operational improvements in Q1 2026, with winter mining rates averaging 180 ktpd, consistent with expectations. Mill throughput exceeded nameplate capacity of 27 ktpd for 51% of days in Q1 2026 compared to 36% in Q4 2025. Valentine (3% royalty) – Equinox Gold reported that the ramp-up is progressing well, with the mine averaging 90% of nameplate capacity for Q1 2026. Once operating at design capacity, Valentine Gold is expected to produce between 175,000 and 200,000 ounces of gold annually. Equinox is also continuing to advance the Phase 2 expansion which would increase average annual production to approximately 223,000 ounces for ten years. Musselwhite (5% NPI) – In April 2026, Orla Mining continued to report exploration success at Musselwhite, with stacked extension zones expanding the mine trend by more than two kilometers and providing for significant mine life extension. Surface drilling within 10km of the mill identified multiple targets for potential open-pit satellite deposits, including at Camp Bay which is covered by our NPI. Sudbury (gold and PGM stream) – GEOs sold from our Sudbury stream were higher in Q1 2026 than in Q1 2025. Production relates to the McCreedy West Mine operated by Magna Mining. Since acquiring the assets in January 2025, Magna continues to evaluate production opportunities at McCreedy West as it continues to receive new diamond drilling information and optimizes its plan to increase production and profitability. Eskay Creek (2.5% royalty) – Skeena Resources reported that construction was 49% complete as of February 28, 2026 and that the project remains on schedule, with initial production targeted for Q2 2027 and commercial production for Q3 2027. In April 2026, Skeena raised $750 million through the issuance of senior secured notes. Canadian Malartic (1.5% royalty) – At Odyssey, production from the East Gouldie ramp commenced in March 2026, three months ahead of schedule. Gold production was in line with plan at approximately 27,400 ounces, with Odyssey expected to contribute approximately 120,000 ounces of gold in 2026. It is estimated that Franco-Nevada's East Gouldie claims cover approximately 28% of the East Gouldie reserve, with drilling continuing to extend East Gouldie to the east in both the upper and lower portions of the deposit. For 2026, Franco-Nevada estimates 600-700 GEOs will be received from our royalty interest at Canadian Malartic. U.S.:

Stillwater (5% royalty) – Sibanye-Stillwater reported that its US PGM Operations were converting its stoping technique to allow increased volumes mined. The phased implementation is expected to be completed by H2 2028. Sibanye-Stillwater expects steady-state production of approximately 410,000 ounces by 2029, with Stillwater West providing future optionality and upside. South Arturo (4-9% royalties) – GEOs sold in Q1 2026 were higher than in Q1 2025, as Nevada Gold Mines continues to mine the South Arturo pit in 2026, in line with the Carlin mine plan. Bald Mountain (1-5% royalties) – Kinross reported that the Redbird project advanced across several key areas during the quarter, including mining, construction of processing infrastructure, and earthworks for the heap leach pad extension. The Redbird project, along with five additional satellite pits, is expected to incrementally produce a total of 640,000 gold ounces and extends the mine life to 2032. i-80 (1.5% royalty) – In March 2026, i-80 completed a recapitalization plan which is expected to fully fund its development plan through Phase 1 and Phase 2, with a path to funding Phase 3. In April, i-80 announced positive assay results from its drilling campaign at the Archimedes project. i-80 commenced construction of Archimedes in Q3 2025. Rest of World:

Western Limb (gold and platinum stream) – GEOs sold in Q1 2026 were lower than in the prior year quarter. Deliveries received in Q1 2025 related to four months of production, commencing from the effective date of the agreement (September 1, 2024) through December 31, 2024. Tasiast (2% royalty) – GEOs from our Tasiast royalty were higher than in Q1 2025, due to higher production supported by higher grades. Subika (Ahafo) (2% royalty) – GEOs from our Subika (Ahafo) royalty were lower in Q1 2026 than in Q1 2025 as mining activities in the Subika open pit were completed as planned in Q3 2025. Production on royalty ground continues at the Subika Underground, where Newmont plans to increase its investment in exploration and advanced projects. Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $82.6 million in revenue, compared to $74.8 million in Q1 2025. When converted to GEOs, our Diversified assets contributed 18,373 GEOs, compared to 25,962 GEOs in Q1 2025. The lower GEOs are due to using a higher gold price for conversion ($4,500 per ounce for the current period).

Other Mining: 

Vale (iron ore royalty) – Revenue from the Vale royalty increased when compared to Q1 2025, largely driven by the inclusion of sales from the Southeastern System following the achievement of the cumulative sales threshold of 1.7 billion tonnes of iron ore in April 2025. LIORC – Revenue from our attributable interest on the Carol Lake mine in Q1 2026 was lower than in Q1 2025. LIORC declared a cash dividend of C$0.30 per common share in the current period, compared to C$0.50 in Q1 2025. Production at IOC in Q1 2026 was lower due to adverse weather and ongoing challenges including mine equipment reliability. Ring of Fire – In March 2026, the government of Ontario released an accelerated plan for all‑season road construction into the Ring of Fire, with construction scheduled to commence in mid-2026. The Ontario government has also signed new economic partnerships with Marten Falls First Nation and Webequie First Nation. In December 2025, the Ontario and Canadian federal governments signed a cooperation agreement aimed at eliminating duplicative environmental and impact assessment processes through the "One Project, One Process" framework. Energy:

U.S. (various royalty rates) – Revenue from our U.S. Energy interests increased to $43.0 million in Q1 2026, compared to $41.8 million in Q1 2025. The increase was driven by higher production at our Haynesville interests, and higher realized gas prices at Marcellus due to weather-related seasonality. Canada (various royalty rates) – Revenue from our Canadian Energy interests was $16.4 million in Q1 2026, compared to $16.2 million in Q1 2025 due to higher realized oil prices. Our Weyburn NRI benefited from stronger pricing and lower expenses compared to Q1 2025. Dividend Declaration

Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.44 per share. The dividend will be paid on June 25, 2026, to shareholders of record on June 11, 2026 (the "Record Date"). The dividend has been declared in U.S. dollars and the Canadian dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident individuals who receive "eligible dividends" are entitled to an enhanced gross-up and dividend tax credit on such dividends.

The Company has a Dividend Reinvestment Plan (the "DRIP") which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the Average Market Price, as defined in the DRIP, subject to a discount from the Average Market Price in the case of treasury acquisitions. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com. Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada. Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.

This news release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov.

Shareholder Information and Details for Q1 2026 Conference Call

The complete Consolidated Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.

We will host a conference call to review our Q1 2026 quarterly results. Interested investors are invited to participate as follows:

Conference Call and Webcast:

May 13th 8:00 am ET

Dial‑in Numbers:

Toll‑Free: 1-888-510-2154

International: 437-900-0527

Conference Call URL (This allows participants to join the conference call by
phone without operator assistance. Participants will receive an automated
call back after entering their name and phone number):

emportal.ink/4eu8kF3

Webcast:

www.franco-nevada.com

Replay (available until May 20th):

Toll‑Free: 1-888-660-6345

International: 289-819-1450

Pass code: 31601#

Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.

Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, any ongoing or future audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panamá mine. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine lives will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Brazilian real, Mexican peso and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption and implementation of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from mineral resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of any ongoing or future audits by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panamá mine. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. 

For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date hereof only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

ENDNOTES:

1. Gold Equivalent Ounces ("GEOs") and Net Gold Equivalent Ounces ("Net GEOs"):

GEOs include Franco-Nevada's attributable share of production from our Mining and Energy assets after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs and, in the case of stream ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Where the Company receives gold and silver bullion in-kind as payment for its royalties, GEOs are recognized at the time of receipt of such bullion. Silver, platinum, palladium, iron ore, oil, gas and other commodities are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. Beginning in 2026, the Company adopted fixed GEO conversion ratios based on the pricing assumptions outlined in our guidance. This methodology replaces our previous methodology which was based on variable GEO conversion ratios using prevailing market prices. Our 2026 guidance, as disclosed in our 2025 MD&A filed on March 10, 2026, assumed the following commodity prices: $4,500/oz Au, $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas. GEOs for the 2026 period are calculated based on fixed conversion ratios based on the prices assumed in this 2026 guidance. Net GEOs are GEOs sold, net of direct operating costs, including for our stream GEOs, the associated ongoing cost per ounce. Calculation of Net Gold Equivalent Ounces:

For the three months ended

March 31, 

(expressed in millions, excepts GEOs and Gold Price)

2026

2025

GEOs

136,353

126,585

Less:

Cash Costs

$

46.5

$

38.5

Divided by: Gold price per ounce

$

4,500

$

2,863

10,333

13,447

Net GEOs

126,020

113,138

2. NON-GAAP FINANCIAL MEASURES: 

Adjusted Net Income, Adjusted Net Income per share, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most directly comparable financial measure under IFRS Accounting Standards, refer to the below tables. Further information relating to these non-GAAP financial measures is incorporated by reference from the "Non-GAAP Financial Measures" section of Franco-Nevada's MD&A for the three months ended March 31, 2026 dated May 12, 2026 filed with the Canadian securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with the U.S. Securities and Exchange Commission available on EDGAR at www.sec.gov. Change in Composition of Adjusted Net Income – Gains on buy-backs of royalty and stream interests: Effective Q1 2026, the Company updated the composition of its Adjusted Net Income (and related per share and margin amounts) to no longer adjust for gains on contractual buy-backs of royalty and stream interests. Previously, gains on buy-backs were an adjusting item when calculating Adjusted Net Income (and related per share and margin amounts). Management continues to adjust for gains or losses on sales on discretionary sales of mineral interests when calculating these non-GAAP measures. Management believes that this change more appropriately reflects the Company's operating performance as contractual buy-backs are embedded in the terms of many of the Company's royalty and stream interest agreements, such that they occur in the ordinary course and are an integral part of Franco Nevada's royalty and stream business. Unlike less common discretionary sales of mineral interests, these transactions are evaluated by management when assessing overall returns from our royalty and stream interests, and accordingly, we believe such gains should not be eliminated for purposes of calculating Adjusted Net Income and related per share amounts, when evaluating performance for investors. This change is reflected on a full retrospective basis. Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which exclude the following from net income and earnings per share ("EPS"): impairment losses and reversal related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests (excluding gains on buy-backs of royalty and stream interests) and investments; impairment losses and expected credit losses related to equity investments, loans receivable and other financial instruments, changes in fair value of investments, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; the impact of income taxes on these items; income taxes related to the reassessment of the probability of realization of previously recognized or de-recognized deferred income tax assets; and income taxes relating to the revaluation of deferred income tax assets and liabilities as a result of statutory income tax rate changes in the countries in which the Company operates. Adjusted Net Income Margin is a non-GAAP financial measure which is defined by the Company as Adjusted Net Income divided by revenue. Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures, which exclude the following from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; impairment losses and reversals related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; gains on buy-backs of royalty and stream interests, impairment losses and expected credit losses related to equity investments, loans receivable and other financial instruments, changes in fair value of investment, loans receivable and other financial instruments, and foreign exchange gains/losses and other income/expenses. Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA divided by revenue. Reconciliation of Non-GAAP Financial Measures:

For the three months ended

March 31, 

(expressed in millions, except per share amounts)

2026

2025

Net income

$

468.6

$

209.8

Foreign exchange gain and other income

(12.4)

(5.7)

Tax effect of adjustments

2.1

1.5

Adjusted Net Income

$

458.3

$

205.6

Basic weighted average shares outstanding

192.8

192.6

Adjusted Net Income per share

$

2.38

$

1.07

For the three months ended

March 31, 

(expressed in millions, except Adjusted Net Income Margin)

2026

2025

Adjusted Net Income

$

458.3

$

205.6

Divided by: Revenue

650.7

368.4

Adjusted Net Income Margin

70.4

%

55.8

%

For the three months ended

March 31, 

(expressed in millions, except per share amounts)

2026

2025

Net income

$

468.6

$

209.8

Income tax expense

126.3

59.8

Finance income

(5.5)

(11.1)

Finance expenses

0.8

0.7

Depletion and depreciation

77.9

68.4

Gain on buy-back of royalty and stream interests

(63.8)

—

Foreign exchange gain and other income

(12.4)

(5.7)

Adjusted EBITDA

$

591.9

$

321.9

Basic weighted average shares outstanding

192.8

192.6

Adjusted EBITDA per share

$

3.07

$

1.67

For the three months ended

March 31, 

(expressed in millions, except Adjusted EBITDA Margin)

2026

2025

Adjusted EBITDA

$

591.9

$

321.9

Divided by: Revenue

650.7

368.4

Adjusted EBITDA Margin

91.0

%

87.4

%

3. AVAILABLE CAPITAL: Available Capital comprises our cash and cash equivalents of $714.7 million as at March 31, 2026, our equity investments (excluding our long-term investment in Labrador Iron Ore Company of Canada) of $1,142.4 million and the amount available to borrow under our $1.0 billion corporate revolving credit facility and its accordion of $500.0 million as at March 31, 2026. Subsequent to quarter-end, on May 8, 2026, FNIC entered into a revolving credit facility of $500.0 million with a $250.0 million accordion.

FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)

At March 31, 

At December 31, 

2026

2025

ASSETS

Cash and cash equivalents

$

714.7

$

670.9

Receivables

267.5

241.9

Gold and silver bullion and stream inventory

123.3

40.1

Other current assets

22.1

68.5

Current assets

$

1,127.6

$

1,021.4

Royalty, stream and working interests, net

$

6,307.2

$

6,043.1

Investments

1,322.0

1,141.3

Deferred income tax assets

19.8

23.2

Other assets

21.0

12.4

Total assets

$

8,797.6

$

8,241.4

LIABILITIES

Accounts payable and accrued liabilities

$

49.7

$

44.9

Income tax liabilities

133.5

78.1

Current liabilities

$

183.2

$

123.0

Deferred income tax liabilities

$

487.0

$

440.7

Income tax liabilities

12.4

33.8

Other liabilities

8.3

8.6

Total liabilities

$

690.9

$

606.1

SHAREHOLDERS' EQUITY

Share capital

$

5,813.9

$

5,803.4

Contributed surplus

16.5

21.6

Retained earnings

1,771.6

1,379.8

Accumulated other comprehensive income

504.7

430.5

Total shareholders' equity

$

8,106.7

$

7,635.3

Total liabilities and shareholders' equity

$

8,797.6

$

8,241.4

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 
(in millions of U.S. dollars and shares, except per share amounts)

For the three months ended

March 31, 

2026

2025

Revenue

Revenue from royalty, streams and working interests

$

650.7

$

365.5

Interest revenue

—

2.9

Total revenue

$

650.7

$

368.4

Costs of sales

Costs of sales

$

46.5

$

38.5

Depletion and depreciation

77.9

68.4

Total costs of sales

$

124.4

$

106.9

Gross profit

$

526.3

$

261.5

Other operating (income) expenses

General and administrative expenses

$

9.2

$

9.4

Share-based compensation expenses

6.2

5.7

Gain on buy-back of royalty and stream interests

(63.8)

—

Gain on sale of gold and silver bullion

(3.1)

(7.1)

Total other operating (income) expenses

$

(51.5)

$

8.0

Operating income

$

577.8

$

253.5

Foreign exchange gain and other income

$

12.4

$

5.7

Income before finance items and income taxes

$

590.2

$

259.2

Finance items

Finance income

$

5.5

$

11.1

Finance expenses

(0.8)

(0.7)

Net income before income taxes

$

594.9

$

269.6

Income tax expense

126.3

59.8

Net income

$

468.6

$

209.8

Other comprehensive income, net of taxes

Items that may be reclassified subsequently to profit and loss:

Currency translation adjustment

$

(51.9)

$

2.7

Items that will not be reclassified subsequently to profit and loss:

Gain on changes in the fair value of equity investments

at fair value through other comprehensive income ("FVTOCI"),

net of income tax

133.7

148.8

Other comprehensive income, net of taxes

$

81.8

$

151.5

Comprehensive income

$

550.4

$

361.3

Earnings per share

Basic

$

2.43

$

1.09

Diluted

$

2.43

$

1.09

Weighted average number of shares outstanding

Basic

192.8

192.6

Diluted

193.2

192.9

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)

For the three months ended

March 31, 

2026

2025

Cash flows from operating activities

Net income

$

468.6

$

209.8

Adjustments to reconcile net income to net cash provided by operating activities:

Depletion and depreciation

77.9

68.4

Share-based compensation expenses

1.1

2.1

Gain on buy-back of royalty and stream interests

(63.8)

—

Unrealized foreign exchange gain

(1.3)

(6.0)

Deferred income tax expense

33.7

9.1

Gain on sale of gold and silver bullion

(3.1)

(7.1)

Gain on derivative financial instruments

(11.0)

(0.1)

Other non-cash items

(0.2)

(0.2)

Gold and silver bullion from royalties received in-kind

(47.4)

(19.2)

Proceeds from sale of gold and silver bullion

15.1

30.2

Receipt of deposits and interest from Canada Revenue Agency

49.5

—

Increase in other assets

(8.2)

—

Operating cash flows before changes in non-cash working capital

$

510.9

$

287.0

Changes in non-cash working capital:

Increase in receivables

$

(25.6)

$

(8.4)

(Increase) decrease in other current assets

(3.2)

8.9

Increase in accounts payable and accrued liabilities

38.3

1.4

Net cash provided by operating activities

$

520.4

$

288.9

Cash flows used in investing activities

Acquisition of royalty, stream and working interests

$

(449.4)

$

(505.2)

Acquisition of investments

(35.3)

(52.3)

Proceeds from buy-back of royalty interest

97.5

—

Acquisition of gold bullion from buy-back of stream interest

(10.2)

—

Acquisition of energy well equipment

(0.3)

(1.2)

Acquisition of property and equipment

(0.2)

(2.0)

Proceeds from sale of investments

—

9.7

Net cash used in investing activities

$

(397.9)

$

(551.0)

Cash flows used in financing activities

Payment of dividends

$

(80.5)

$

(70.2)

Capitalized debt issue costs

(0.7)

—

Proceeds from exercise of stock options

0.4

3.4

Net cash used in financing activities

$

(80.8)

$

(66.8)

Effect of exchange rate changes on cash and cash equivalents

$

2.1

$

5.7

Net change in cash and cash equivalents

$

43.8

$

(323.2)

Cash and cash equivalents at beginning of period

$

670.9

$

1,451.3

Cash and cash equivalents at end of period

$

714.7

$

1,128.1

Supplemental cash flow information:

Income taxes paid

$

58.1

$

47.5

Dividend income received

$

1.6

$

3.3

Interest and standby fees paid

$

0.8

$

1.0

The condensed consolidated interim financial statements and accompanying notes can be found in our Q1 2026 Quarterly Report available on our website

SOURCE Franco-Nevada Corporation

Franco-Nevada (FNV) remains a fundamentally strong, asset-light gold royalty business with no debt and high margins, but valuation is currently unattractive. Despite gold's surge and FNV's 90%+ EBITDA margins, the stock underperformed physical gold and broader indices due to high P/E and investor preference for higher-beta miners. FNV's diversified exposure, including oil and gas, and its premium multiple limit upside; annualized RoR since 2020 is under 8%.

Franco-Nevada Corporation (FNV:CA) Q1 2026 Earnings Call Transcript

, /PRNewswire/ - Franco-Nevada Corporation announced that the nominees listed in the management proxy circular for the 2026 Annual and Special Meeting of Shareholders were elected as directors of the Corporation.  Detailed results of the vote for the election of directors held at the Annual Meeting yesterday in person and by webcast are set out below.

Nominee

Votes For

% For

Votes 

Against

% Against

Tom Albanese

145,825,750

96.79 %

4,833,179

3.21 %

Paul Brink

150,338,527

99.79 %

321,778

0.21 %

Hugo Dryland

149,727,488

99.38 %

932,813

0.62 %

Derek W. Evans

144,493,780

95.91 %

6,165,148

4.09 %

Dr. Catharine Farrow

148,416,564

98.51 %

2,243,740

1.49 %

Maureen Jensen

148,905,216

98.84 %

1,755,088

1.16 %

Jennifer Maki

148,516,087

98.58 %

2,142,841

1.42 %

Daniel Malchuk

149,958,725

99.53 %

701,578

0.47 %

Jacques Perron

150,299,737

99.76 %

360,565

0.24 %

Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.

SOURCE Franco-Nevada Corporation

The outlook for Zacks Mining - Gold industry remains under pressure as gold prices have slipped below $4,400 per ounce, hovering near a two-month low. Renewed Iran war fears, rising inflation concerns, a stronger U.S dollar and expectations that central banks will keep interest rates higher weighed on sentiment. Miners continue to face rising costs and labor shortages. Longer-term challenges include resource depletion and declining production from mature mines, which point to a potential supply deficit.

Amid this uncertainty, Franco-Nevada Corporation (FNV - Free Report) , Harmony Gold (HMY - Free Report) , Novagold Resources (NG - Free Report) , DRDGOLD Limited (DRD - Free Report) and Idaho Strategic Resources, Inc. (IDR - Free Report) are well-poised for growth, backed by their strong balance sheets and growth initiatives.

About the Industry The Zacks Mining - Gold industry mainly comprises companies engaged in extracting gold from mines. The mines may either be underground or open pits. Mining is a long and complex process, and requires significant financial resources. It involves exploration to evaluate a deposit's size; assessing ways to extract and process ore efficiently, safely and responsibly; and developing the mine before the actual mining process. It normally takes 10-20 years for a gold mine to produce material that can finally be refined. Players in the industry nowadays use a range of sophisticated techniques to extract gold and convert it into dore bars, an alloy of gold and silver, alongside other impurities. These are then sent for purification, after which gold is purchased as bars or coins, or used in jewelry or other purposes.

Major Trends Shaping the Future of the Mining - Gold Industry Gold Prices Dip to 2 Month Lows: Gold prices have tumbled to below $4,400 an ounce, the lowest since March 27, 2026. This was fueled by fresh U.S. attacks on Iran, which dampened hopes of a deal.  This boosted the dollar and oil prices, feeding inflation expectations and reducing rate-cut bets. Gold is currently down more than 15% since the conflict began. Even if both sides move closer to a deal, elevated energy prices are still expected to fuel inflationary pressures and encourage central banks to keep interest rates higher for longer, rather than proceed with the rate cuts. 

High Costs, Labor Shortage Are Worrisome: The industry has been facing a shortage of skilled workforce, causing a spike in wages. Industry players are persistently grappling with escalating production costs, including energy, water, and material and supply-chain issues. Since the industry cannot control gold prices, it focuses on improving the sales volume and the operating cash flow, and lowering unit net cash costs. The industry participants are opting for alternative energy sources, such as solar or wind farms, to minimize fuel-price volatility and secure supply. Miners are committed to cost-reduction strategies and digital innovation to drive operating efficiencies.

Declining Supply a Concern for the Industry: Depleting resources, declining supply in old mines and the lack of new mines have been a perennial problem for the industry. Due to the scarcity of discoveries and exhaustive existing resources, miners prefer building up reserves through acquisitions rather than digging new ones that are risky and capital-intensive. On the demand side, the use of gold in energy, healthcare and technology is rising. India and China account for around 50% of consumer gold demand. The yellow metal has long been considered a safe-haven investment in financial or political uncertainty. Gold demand continues to be on the rise from central banks. Therefore, there will be an eventual demand-supply imbalance.

Zacks Industry Rank Indicates Dull Prospects The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. The Zacks Mining - Gold Industry, which is a 44-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #149, which places it at the bottom 39% of 244 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.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.

Industry Versus S&P 500 & Sector The Mining-Gold Industry has outperformed the S&P 500 Index and the Basic Material sector in a year. The stocks in the industry have collectively gained 71% compared with the broader sector’s growth of 41.5%. The S&P 500 has risen 31.9% in the same time frame.

One-Year Price Performance
 

Industry's Current Valuation On the basis of the trailing 12-month EV/EBITDA, a commonly used multiple for valuing gold-mining companies, we see that the industry is currently trading at 7.30X compared with the S&P 500’s 18.78X and the Basic Material sector’s trailing 12-month EV/EBITDA of 13.74X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio

Over the last five years, the industry traded as high as 11.74X and as low as 5.25X, the median being 7.92X.

5 Mining-Gold Stocks to Bet On DRDGOLD: The company delivered strong operational and financial results for the quarter ended March 31, 2026, driven by higher throughput, disciplined cost management and continued exposure to a favorable gold price environment. DRDGOLD remains on track to achieve the upper end of its 2026 production guidance range of between 140 000 and 150 000 ounces of gold. The group’s liquidity position continues to support the internal funding of its expanded capital program while maintaining a debt-free balance sheet. The company’s focus for the near term remains the successful completion of the ‘Big 5’ projects comprising its Vision 2028 to establish the platform that will unlock the balance of DRDGOLD’s gold resources. This is expected to expand throughput to 3 million tons a month and increase gold output to six tons (200,000 ounces) a year at a total cost of R7.8 billion ($1.54 billion) forecasted for the medium term. DRD shares have gained 70.7% in the past year.

The Zacks Consensus Estimate for DRDGOLD’s earnings for fiscal 2026 indicates 164.34% year-over-year growth. The estimate has moved up 20% over the past 60 days. DRD currently sports  a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Price: DRD

Idaho Strategic Resources: The company operates the producing Golden Chest gold mine and holds a majority ownership interest in the New Jersey Mill, along with several exploration-stage gold properties. The company’s strategy centers on growing production at Golden Chest while reinvesting cash flow into both gold and rare-earth elements (REE) exploration projects. The Golden Chest Mine produced 3,234 ounces of gold in the first quarter of 2026. Exploration activity remained active, with roughly 8,700 meters of drilling completed across several targets, including Paymaster, Red Star, Katie-Dora and the H-vein. The company also stated that permitting is in place for drill programs this year at two projects in the Murray Gold Belt (Little Baldy and Niagara) and at two of its REE prospects (Lucky Horseshoe at Lemhi Pass and Cardinal at Mineral Hill) near Salmon. IDR also secured an important milestone on the rare-earth front. One of its proposals submitted under the Department of Energy’s Funding Opportunity 3105 for critical material innovation was selected for funding. The stock has gained 158.4% in the past year. 

The Zacks Consensus Estimate for this Coeur d'Alene, Idaho-based company’s earnings for fiscal 2026 indicates 33.3% year-over-year growth. The estimate has moved up 92% over the past 60 days. IDR has a trailing four-quarter earnings surprise of 68.7%, on average. Idaho Strategic has currently sports a Zacks Rank of 1. 

Price: IDR
 

Franco-Nevada: The company reported record revenues, adjusted EBITDA, net income and operating cash flow for the first quarter of 2026. It benefited from record gold and silver prices during the quarter, strong contributions from Antamina, South Arturo, Hemlo, Musselwhite, and incremental contributions from Côté Gold, Porcupine and Valentine, all of which were acquired or commenced production over the past year.  The company also benefited from higher revenues from its diversified assets, particularly from Vale's iron ore interest, and Haynesville and Marcellus gas assets. One of the inherent strengths of Franco-Nevada’s business model is the diversified portfolio of precious metals, energy and iron ore. Franco-Nevada continues to deploy capital into new royalties and streams that can add long-duration optionality without adding operating complexity. Given its continued focus on cost management, the company has been generating high margins. FNV shares have gained 30.1% over the past year. 

The Zacks Consensus Estimate for this company’s earnings for fiscal 2026 indicates 58.6% year-over-year growth. The estimate has moved up 3.5% over the past 60 days. FNV has a trailing four-quarter earnings surprise of 10.3%, on average. The company has a long-term estimated earnings growth of 13.11% and currently carries a Zacks Rank #2 (Buy).

Price: FNV

Harmony Gold: The company has delivered a solid operating performance for the nine months ended 31 March 2026, reflecting an excellent third quarter with improvements across all key operational metrics. Mponeng, Hidden Valley and Tshepong North delivered notable performances during this quarter. HMY remains on track to achieve full year production. The company has a diverse portfolio of gold development projects spread across South Africa and Papua New Guinea. Harmony Gold is also progressing with development projects, including the Eva Copper project in Australia and its Tier 1 joint venture asset, the Wafi-Golpu copper-gold project. HMY is focused on strengthening its position as a higher-quality, lower-risk global gold and copper producer, which will be aided by these projects. Harmony Gold acquired the CSA Copper Mine in Australia in October 2025 and has been focused on integrating the mine. Harmony Gold boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects and drive shareholder value. Harmony Gold shares have gained 18.7% over the past year. 

The Zacks Consensus Estimate for the Randfontein, South Africa-based company’s 2026 earnings indicates year-over-year growth of 115.75%. The estimate has moved up 3.4% over the past 60 days. Harmony Gold currently has a Zacks Rank of 2.

Price: HMY

NovaGold Resources: The company is mainly focused on the development of the Donlin Gold project in Alaska, in which it has a 60% stake. The project hosts approximately 40 million ounces of gold in the Measured and Indicated Mineral Resource,  inclusive of Mineral Reserves, at an average grade of 2.22 grams per ton, more than twice the industry average. It is expected to produce an average of more than 1 million ounces per year over a 27-year mine life on a 100% basis, once in production. Donlin Gold’s exceptional scale, high-grade open-pit mineralization, long mine life, competitive estimated operating costs, significant exploration upside[2] and location in an excellent mining jurisdiction place it among a rare class of global gold assets. In 2026, the primary focus remains on progressing the Bankable Feasibility Study of the project and moving to a subsequent Final Investment Decision. NovaGold shares have gained 121% over the past year. 

The Zacks Consensus Estimate for this Vancouver, Canada-based company’s earnings for fiscal 2026 is pegged at a loss of 18 cents per share. The estimate has moved up from the loss of 25 cents projected 60 days ago. NG has a trailing four-quarter earnings surprise of 14.6%, on average. The company currently carries a Zacks Rank of 2.

Price: NG

On June 02, 2026, Franco-Nevada Corp FNV shares rose 3.4% today, bringing the current price to $235.92. Over the past year, the stock has seen significant volatility, trading between a 52-week high of $285.67 and a low of $152.89.

GF Value™ verdict: Current price of $235.92 vs GF Value™ of $261.28, indicating a 9.7% undervaluation.GF Score™ of 83/100, which suggests strong fundamentals and performance potential.Most notable signal: Financial Strength rated 10/10, indicating exceptional financial health. Is FNV Overvalued or Undervalued? Franco-Nevada Corp FNV is currently trading at $235.92, which is 9.7% below its GF Value™ of $261.28. This suggests that the stock is undervalued and presents a potential opportunity for investors looking for stocks with a margin of safety. The GF Valuation label classifies FNV as "Modestly Undervalued," reinforcing the idea that the stock is trading at a discount relative to its intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

Investors may want to consider this undervaluation as an opportunity, but it is crucial to remain cautious about potential risks that could affect future performance. Factors such as market volatility, changes in commodity prices, and the company's operational efficiency should be monitored closely.

How Does FNV's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)33.2x40.0x Forward P/E25.8x- The current P/E ratio of 33.2x is significantly below its 5-year median P/E of 40.0x, indicating that the stock is trading at a lower valuation compared to its historical averages. The forward P/E of 25.8x further supports this notion of a favorable valuation. This P/E analysis aligns with the GF Value™ verdict, suggesting that FNV is undervalued based on both historical and forward-looking multiples.

What Does FNV's GF Score™ Tell Us? MetricRating GF Score™83 Financial Strength10/10 Profitability8/10 Growth8/10 Valuation10/10 Momentum2/10 The GF Score™ of 83/100 indicates that Franco-Nevada Corp has strong overall fundamentals, particularly in Financial Strength and Valuation, both rated at 10/10. This suggests that the company is well-positioned financially and is currently undervalued. However, the Momentum Rank of 2/10 highlights a potential weakness in short-term price performance, indicating that the stock may not be experiencing strong upward momentum at this time. Overall, the score suggests a solid investment foundation, but investors should be aware of the weaker momentum indicators.

What Are Insiders Doing with FNV Stock? In the last three months, there have been no insider transactions reported for Franco-Nevada Corp. This lack of activity could suggest that insiders are currently not making significant moves to either buy or sell shares, which may indicate a level of confidence in the company's current valuation and strategic direction. However, the absence of insider buying could also be interpreted as a lack of urgency to capitalize on perceived opportunities in the market.

What This Means for Investors Franco-Nevada Corp appears to be undervalued based on the GF Value™ estimate, providing a potential opportunity for investors looking for attractive investments in the Metals & Mining sector. However, it is crucial to consider the overall market environment and the company’s future performance as these factors can influence the stock’s trajectory.

For the complete analysis, visit the Franco-Nevada Corp FNV stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FNV's GF Score™?

FNV's GF Score™ is 83/100, indicating strong fundamentals and a solid potential for long-term returns based on historical analysis.

Is FNV overvalued or undervalued?

FNV is currently undervalued, with a GF Value™ of $261.28 compared to its market price of $235.92, representing a 9.7% margin of safety.

What is FNV's P/E ratio?

FNV's P/E (TTM) ratio is 33.2x, which is 17% below its 5-year median P/E of 40.0x, indicating that the stock is trading at a lower valuation compared to its historical levels.

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].

Investors have compelling anecdotal evidence that they should be cautious about the market. The Shiller P/E ratio, an indicator of the market's long-term valuation, is at 41, its highest level since the dot-com bubble.

Moreover, Warren Buffett's former company, Berkshire Hathaway, holds almost $397 billion in liquidity, a record level, and more than the nearly $330 billion value of its stock portfolio. That could indicate it is accumulating cash in anticipation of a discounted market.

However, investors should note that Berkshire remains heavily invested in stocks, and certainly, some stocks can offer value in the current market, particularly among dividend payers. Knowing that, these three consumer names are probably a good place to invest cash while earning generous dividend payments.

Image source: Getty Images.

1. Realty Income Realty Income (O +1.31%) leases single-tenant properties to many of the world's best-known corporations. Companies ranging from Walmart to FedEx to Wynn Resorts operate businesses in properties owned by this real estate investment trust (REIT).

That client base delivers steady revenue and a 99% occupancy rate. With that, the company continues to develop and acquire additional properties.

That base also helps Realty Income maintain its reputation as the "monthly dividend company." True to that name, it has made a payout every month since 1994, increasing the amount at least once per year. At $3.25 per year, its dividend yield is 5.1%, far above the 1.1% average for the S&P 500 (^GSPC +0.50%).

Fortunately, it earned $4.25 per share in funds from operations (FFO) income, a measure of a REIT's free cash flow. That likely means it can continue to support its dividend and fund payout hikes.

Today's Change

(

1.31

%) $

0.81

Current Price

$

62.72

Moreover, while investors may focus on its 55 P/E ratio, it sells at a price-to-FFO ratio of around 15, indicating the stock is much cheaper than it might appear. That increases the likelihood the stock will move higher over the long term, and its dividend should pay shareholders generously in the meantime.

2. Clorox Clorox (CLX 1.51%) is a consumer staples stock that has struggled to gain respect in recent years. In addition to its flagship bleach brand, the company owns Kingsford charcoal, Hidden Valley salad dressing, and Burt's Bees personal care products.

Clorox stock surged during the pandemic amid temporarily high demand for cleaning supplies, but unfortunately, a 2023 cyberattack and implementation of a new CRM system led to stock selling. More recently, rising input costs squeezed margins, forcing a downward revision in sales and earnings forecasts.

However, Clorox has a streak of annual dividend increases spanning decades. Consequently, its $4.96-per-share yearly dividend yields about 5.6%.

Admittedly, its $380 million in free cash flow over the trailing 12 months was well short of the $602 million in dividend costs for the period. Still, a $476 million venture termination payment, a one-time charge, caused that shortfall. Furthermore, since abandoning the streak of payout hikes would hurt the stock's reputation, the company will likely maintain the streak despite its struggles.

Today's Change

(

-1.51

%) $

-1.48

Current Price

$

96.82

Furthermore, Clorox's stock is also cheap. Amid its troubles, its P/E ratio has fallen to 14, well below the S&P 500 average of 31. Assuming investors capitalize on that discounted price, the strength of Clorox's brands should bring stability, and the dividend will likely deliver increasing returns as investors wait for improvement.

3. Kimberly-Clark Kimberly-Clark (KMB +0.74%) has long maintained its stability with brands like Kleenex, Huggies, and Cottonelle. Moreover, it is about to expand its reach with the upcoming merger with Kenvue, formerly a Johnson & Johnson division. This buyout brings famous brands such as Tylenol, Listerine, Neutrogena under its umbrella.

The Kenvue merger may make some investors nervous. Kimberly-Clark's $32 billion market cap is well below the $48.7 billion cost of the deal, meaning the company will almost certainly have to issue shares to close the deal.

Concerns about the deal's cost have likely contributed to a significant decline in Kimberly-Clark stock. However, the lower stock price may indicate investors have priced in much of the upcoming stock dilution. In addition, many investors believe synergies, the disposition of lower-margin businesses, and the company's financial strength will make the deal work.

Today's Change

(

0.74

%) $

0.75

Current Price

$

102.29

Fortunately, its $5.12-per-share dividend has increased for 54 straight years, making it a Dividend King, or a company that has raised its annual dividend for at least 50 consecutive years. The company yields 5.2%. Also, its $1.8 billion in free cash flow over the trailing 12 months was just above the $1.7 billion dividend cost, indicating it can still afford its payout.

Additionally, the pullback in the stock price has taken its P/E ratio to just 15. That low valuation buys investors a stock that owns many of America's most respected consumer brands. With more brands coming under its control following the merger, Kimberly-Clark will likely protect investor wealth while continuing to raise its dividend.

, /PRNewswire/ -- The board of directors of Kimberly-Clark Corporation (NASDAQ: KMB) has declared a regular quarterly dividend of $1.28 per share. The dividend is payable in cash on July 2, 2026, to stockholders of record at the close of business on June 5, 2026.

Kimberly-Clark has paid a dividend for 92 consecutive years and has increased its dividend for 54 consecutive years.

About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website. 

[KMB-F]

Logo - https://mma.prnewswire.com/media/648588/Kimberly_Clark_v1_Logo.jpg

SOURCE Kimberly-Clark

Kimberly-Clark is an attractive value and income play, trading near 52-week lows with a 5.2% yield. KMB's Q1 2026 showed 2.5% organic sales and 3% volume-plus-mix growth, driven by innovation and premiumization, not discounting. The pending Kenvue merger positions KMB for enhanced growth and synergy, with integration and operating model alignment progressing well.

, /PRNewswire/ -- Mike Hsu, Chairman and Chief Executive Officer, and Nelson Urdaneta, Chief Financial Officer of Kimberly-Clark Corporation (NASDAQ: KMB), will be featured speakers at the Deutsche Bank dbAccess Global Consumer Conference on Thursday, June 4, at 11:45 a.m. CEST / 5:45 a.m. ET.

A link to the broadcast will be provided through the Investors section of Kimberly-Clark's website at www.kimberly-clark.com.

About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.

[KMB-F]

Logo - https://mma.prnewswire.com/media/648588/Kimberly_Clark_v1_Logo.jpg

SOURCE Kimberly-Clark Corporation

Key Takeaways KMB delivers 3% volume plus mix growth driven by innovation across categories.Kimberly-Clark raises its global category growth outlook to 2.5% for fiscal 2026.KMB uses pricing and productivity actions to offset inflation and fire-related costs. Kimberly-Clark Corporation’s (KMB - Free Report) differentiated, science-backed innovation across its “good, better, best” product strategy continues to support business momentum. The company highlighted that innovation helped drive solid organic sales growth in the first quarter of 2026, with volume plus mix growth improving to 3%, building on two consecutive years of broad-based volume plus mix growth. The company also reported continued market share gains across key focus categories, including Baby Care, Women’s Health and Active Aging.

KMB highlighted that growth is being driven primarily by innovation, with promotions used strategically to support innovation initiatives. This reflects healthier and more sustainable business momentum. The company remains focused on driving profitable volume and mix growth while maintaining disciplined Pricing Net of Commodity (PNOC) execution. Management emphasized that innovation remains central to this strategy, supporting stronger business momentum, improving product mix and sustaining profitable growth across operations. To maintain this trajectory, Kimberly-Clark has one of its most active second-quarter innovation and commercial activation lineups set to launch.

Looking ahead, management stated that its trailing 12-month weighted average category growth outlook is around 2.5%, following a strong rebound in North America. However, the company expects a modest slowdown in the second quarter of fiscal 2026 due to a $20 million sales impact from the California distribution center fire, creating a 70 to 80 basis point headwind in North America. Additionally, KMB anticipates a roughly $50 million bottom-line impact from inflationary pressures related to the Middle East war. To mitigate these pressures, the company is utilizing pricing, productivity initiatives and supplier contract renegotiations to navigate ongoing cost pressures.

Overall, Kimberly-Clark’s 3% volume-plus-mix growth reflects innovation-led momentum, though management expects some near-term moderation in the fiscal second quarter before improvement in the second half. Its innovation-led strategy, PNOC discipline and productivity initiatives remain central to management’s plan as the company works through near-term operational and cost headwinds.

The Zacks Rundown for KMBShares of KMB have lost 7.8% in the past six months compared with the industry’s decline of 2.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 13.36, lower than the industry’s average of 17.93. KMB currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMB’s current fiscal year earnings implies a year-over-year decline of 0.7%, and the same for next fiscal year earnings implies year-over-year growth of 0.4%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO 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 ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Nestlé S.A. (NSRGY - Free Report) offers family nutrition products, including early childhood, kids and teenagers, and maternal and adult products; cereals; dairy and drink products. At present, NSRGY carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for NSRGY’s current fiscal-year sales and earnings implies growth of 9.1% and 6.8%, respectively, from the year-ago reported figures. NSRGY delivered a trailing four-quarter negative earnings surprise of 1%, on average.

Ryohin Keikaku Co., Ltd. (RYKKY - Free Report) engages in the retail of household goods and food items in Japan and internationally. RYKKY currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for RYKKY's current fiscal-year sales and earnings implies growth of 5.6% and 5.6%, respectively, from the year-ago actuals.

U.S. pro soccer captain and father shares his personal bedwetting experience to help normalize childhood nighttime accidents and empower the next generation to Never Stop Dreaming

, /PRNewswire/ -- Tim Ream, U.S. pro soccer captain, has teamed up with Goodnites®, the #1 Nighttime Underwear1 brand to share, for the first time, his childhood experience with bedwetting. A respected leader on and off the field, Ream is also a dedicated father who is using his platform to help support families and children. Goodnites is joining forces with Ream to uplift children experiencing bedwetting with confidence, courage, and positivity, sending a powerful message that nighttime accidents are a normal part of childhood development rather than a barrier to your potential.

Goodnites® Never Stop Dreaming Why This Partnership Matters: One in Six Children Experience Bedwetting
Bedwetting is common, affecting approximately 1 in 6 children, ages 3–12, yet many children who experience it can feel isolated and ashamed. Ream experienced bedwetting until age 11, but it didn't stop him from becoming a professional athlete competing at the highest level of international soccer.

"I'm partnering with Goodnites because I know firsthand that bedwetting doesn't define you or your future," said Tim Ream. "It was tough, but it taught me resilience. Today, as a father, I want to share my story to let children know they are not alone. Bedwetting is not a reflection of who they are and doesn't have to keep them from going after their dreams."

Campaign Details: "To My Younger Self" 
Ream is featured in the brand's new multimedia campaign chronicling his journey from a child navigating bedwetting to a celebrated professional athlete and emphasizes that even though bedwetting feels overwhelming when you're little, it does not define who you will become. Watch Ream speak to his younger self here: https://youtu.be/ZKsPcxo8Xl4.

"What Tim Ream says to his younger self matters because it's real. He's lived it, and now he's using his platform to remind kids that bedwetting is common and that they can still be confident and pursue their dreams," said Dan Jackson, North America Vice President & General Manager for Child Care.

Goodnites Brand Mission: Support Beyond the Product
Goodnites has always supported families navigating childhood bedwetting, and this partnership deepens our mission to support not just nighttime needs, but children's confidence and dreams. Through this partnership, Goodnites, the brand that offers nighttime protection against bedwetting accidents, continues to support families navigating bedwetting with products and resources that promote confidence and emotional well-being.

Follow @goodnites on Instagram and Facebook, and @goodnitesbrand on TikTok to learn more.

1Youth Pant Category Share Data

About Goodnites
Goodnites, part of Kimberly–Clark, is the #1 Nighttime Underwear 1 brand founded in 1994 that is focused on helping children, teens and families navigate bedwetting. Beyond being a trusted brand that offers nighttime solutions, the Goodnites website provides educational resources, guidance for caregivers and community outreach aimed at reducing stigma and focuses on children's well–being. Goodnites brand partners with expert organizations and is available nationwide through major retailers and online; more at http://goodnites.com/en-us.

About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit https://www.kimberly-clark.com/en-us/.

Media Contacts:
Kimberly-Clark Media Relations
[email protected]

HUNTER
[email protected]

SOURCE Kimberly-Clark Corporation

Pull-Ups®’ new Learning Layer™ technology helps kids notice wetness in the moment, supporting independence and helping to build confidence in their potty training routines.

TORONTO--(BUSINESS WIRE)--Pull-Ups®, a Kimberly-Clark brand, has introduced Learning Layer™ technology in Canada, addressing a common challenge in potty training: recognizing the difference between wet and dry. The training pant innovation is designed to help kids notice wetness during potty training while supporting independence and confidence during this key developmental milestone.

How Pull-Ups® Learning Layer™ Technology Works

According to Kimberly-Clark, the new Pull-Ups® Learning Layer™ technology is aimed at helping kids notice when they’re wet so that accidents can help reinforce potty training awareness and routines over time. When accidents happen, fluid is held for a bit in the Learning Layer™ technology and is designed to give the child time to recognize the feeling of wetness before it’s absorbed. The Pull-Ups® Learning Layer™ technology is built to support them in the next phase of their development.

By briefly allowing children to feel wetness before absorption, the Learning Layer™ technology helps children:

Notice wetness Learn the difference between wet and dry Build awareness and independence Executive Commentary: Product Innovation and Design

“At Kimberly-Clark, we’re constantly looking for ways to better support parents through everyday moments that matter most,” says Todd Fisher, General Manager, Kimberly-Clark Canada. “Innovations like the new Pull-Ups® Learning Layer™ technology reflect how our teams listen, learn and design with families in mind. By helping make the difference between wet and dry noticeable, we’re not just introducing a new feature, we’re helping turn a stressful moment for family into a meaningful experience for both parents and children.”

"Potty training is one of those key developmental milestones parents often don’t think about until they’re in it. When they are, it can feel overwhelming,” says Tanya Willer, Vice President, Marketing & Sales Strategy, Kimberly-Clark Canada. “The Pull-Ups® Learning Layer™ technology is designed to help children potty training recognize the difference between wet and dry. It can help Big Kids build a routine and become more confident, turning a challenging milestone into a manageable experience for families.”

Product Features and Supporting Benefits

In addition to the new Learning Layer™ technology, Pull-Ups® continues to deliver the training pant features families know and love. Pull-Ups® training pants remain the only national leading training pant brand with re-fastenable sides for easy changes, with targeted absorption zone where boys or girls need it most. They are also dermatologist tested and safe for sensitive skin.

Availability: Where to find Pull-Ups®

Pull-Ups® with Learning Layer™ technology is available now at retailers nationwide, including Loblaw banners like Shoppers Drug Mart and Real Canadian Superstore, Walmart, Amazon and more.

To learn more about Pull-Ups® Learning Layer™ technology and access potty training resources and tips for both Big Kid and family, visit pull-ups.com or follow us on @GrowWithHuggies.

About Kimberly-Clark

Kimberly-Clark Canada (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands include Huggies, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Viva. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.

Diapers, Pull-Ups, Potty-Training
ORG: Kimberly-Clark Canada
BRAND: Pull-Ups
TAXONOMY: Diapers, Pull-Ups, Potty Training
VERSION: 1.0
DATE: June 8, 2026

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MINNEAPOLIS--(BUSINESS WIRE)--General Mills, Inc. (NYSE: GIS) announced that Chief Financial Officer Kofi Bruce and Chief Operating Officer (effective June 1) Dana McNabb will be featured speakers at the dbAccess Global Consumer Conference on June 4, 2026. A webcast of the live fireside chat is scheduled to begin at 1:30 a.m. CT, and a replay of the event will be available at www.generalmills.com/investors.

# # #

About General Mills

General Mills makes food the world loves. The company is guided by its Accelerate strategy to boldly build its brands, relentlessly innovate, unleash its scale and stand for good. Its portfolio of beloved brands includes household names like Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Totino’s, Annie’s, Wanchai Ferry and more. General Mills generated fiscal 2025 net sales of U.S. $19 billion. In addition, the company’s share of non-consolidated joint venture net sales totaled U.S. $1 billion. For more information, visit www.generalmills.com.

More News From General Mills

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Many novice investors will freak out when there's a stock market crash or correction. They shouldn't, of course, because such downturns will inevitably happen now and then. Indeed, after a crash is an excellent time to go shopping for new stocks for your portfolio, because many great companies' shares will be on sale.

Here's a stock you might want to consider for your own long-term portfolio: General Mills (GIS +2.04%). If the market drops, its price will become even more attractive, but you might not even want to wait, because its shares already seem undervalued.

Image source: Getty Images.

Meet General Mills General Mills has been around for 160 years. It traces its roots back to a Minnesota flour mill established in 1866. It bought Häagen-Dazs in 1983, Pillsbury in 2001, and Blue Buffalo in 2018. Today, with a recent market value near $18 billion, it's a food powerhouse, with brands including Annie's, Betty Crocker, Bisquick, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Gold Medal, Green Giant, Kix, Larabar, Nature Valley, Old El Paso, Progresso, Totino's, Wanchai Ferry, and Wheaties -- among many others.

Today's Change

(

2.04

%) $

0.69

Current Price

$

34.51

Should you invest in General Mills? It's worth considering an investment in General Mills, because the shares are looking rather appealingly priced, with a recent forward-looking price-to-earnings (P/E) ratio of 10.4 well below the five-year average of 15.3, and a recent price-to-sales ratio of 1.0 well below the five-year average of 1.9.

Note, though, that General Mills has been facing some headwinds lately, with management pointing to several that affected its third quarter: retailer inventories, weather-related supply chain disruptions, along with brand-improving investments, divestitures, and unfavorable trade expense timing, among others. It noted, though, that these "timing headwinds [are] expected to become tailwinds in Q4."

Those factors were enough to result in the following for the third quarter:

Net sales of $4.4 billion, down 8% year over year, with organic net sales down 3%. Operating profit of $525 million, down 41% year over year, with adjusted operating profit down 32% in constant currency. Diluted earnings per share (EPS) of $0.56, down 50% year over year -- and down 37% in constant currency. Those are not ideal numbers, but remember the powerful brands under the company's roof, and that the company has been working to turn things around -- by divesting some businesses and investing more heavily in others. Best of all, anyone who has considered the risks and is willing to invest now and wait can collect a very fat dividend, which recently yielded 7.2%. The company has also been repurchasing shares (which rewards shareholders by making remaining shares more valuable), sending its total shareholder yield up to 11.7%. (General Mills has paid a dividend for 127 consecutive years.)

General Mills may not be a no-brainer stock without its dividend, but that dividend promises significant regular income while you wait for a turnaround. I wouldn't buy it and forget it, but perhaps buy and keep an eye on the stock.

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MINNEAPOLIS--(BUSINESS WIRE)--General Mills, Inc. (NYSE: GIS) today announced that it has entered into a definitive agreement to sell its Häagen-Dazs shops in Mainland China to an investor group including Ningji, a Chinese company that operates one of the fastest growing tea brands in China with a network of more than 3,000 premium quick-service retail tea shops. As part of the agreement, the buyer will receive an exclusive license from General Mills to use the Häagen-Dazs brand in ice cream shops and gifting business in Mainland China. General Mills will continue to own and operate the Häagen-Dazs retail and foodservice operations in China.

The proposed transaction is expected to close in calendar 2026, subject to receipt of requisite regulatory approvals and other customary closing conditions. The financial terms of the transaction were not disclosed.

The transaction aligns with General Mills’ Accelerate strategy and elevates the company’s focus on its brands and channels that provide the strongest opportunities for profitable growth. Since fiscal 2018, General Mills has significantly reshaped its portfolio for growth, turning over nearly one-third of its net sales base through acquisitions and divestitures.

Citi served as the exclusive financial advisor to General Mills for the transaction, and Herbert Smith Freehills Kramer Global served as legal advisor.

About General Mills

General Mills makes food the world loves. The company is guided by its Accelerate strategy to boldly build its brands, relentlessly innovate, unleash its scale and stand for good. Its portfolio of beloved brands includes household names like Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Totino’s, Annie’s, Wanchai Ferry and more. General Mills generated fiscal 2025 net sales of U.S. $19 billion. In addition, the company’s share of non-consolidated joint venture net sales totaled U.S. $1 billion. For more information, visit www.generalmills.com.

More News From General Mills

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Key Takeaways GIS to sell Haagen-Dazs shop business in Mainland China; buyers gain exclusive shop and gifting rights. GIS keeps Haagen-Dazs retail and foodservice in China while shifting shops to a local networked operator. GIS saw 3% organic sales drop in Q3, but Haagen-Dazs posted mid-single-digit international retail growth. General Mills, Inc. (GIS - Free Report) has agreed to sell its Haagen-Dazs shop business in Mainland China to an investor group that includes Ningji, a fast-growing premium tea chain operator. The transaction grants the buyers exclusive rights to use the Haagen-Dazs brand for ice cream shops and gifting operations in Mainland China, while General Mills will continue to operate its retail and foodservice Haagen-Dazs businesses in the market.

The deal reflects the company's ongoing efforts to reshape its portfolio and concentrate resources on businesses that offer stronger opportunities for profitable growth. Since fiscal 2018, General Mills has actively refined its brand portfolio through acquisitions and divestitures, seeking to strengthen its long-term growth profile.

GIS’ Portfolio Optimization Amid Near-Term HeadwindsThe announcement comes as General Mills works through a challenging operating environment. In the third quarter of fiscal 2026, organic sales fell 3%, while profits were pressured by increased investments in brand support, portfolio changes and higher costs.

To improve competitiveness, the company has been investing in product innovation, advertising, pricing initiatives and distribution enhancements. These efforts appear to be generating early results. Recent trends showed improvement in household penetration, baseline sales and market-share performance across several key categories, indicating that the company's investments are beginning to strengthen consumer engagement.

Image Source: Zacks Investment Research

GIS Retains Exposure to a Key International BrandThe transaction does not diminish General Mills' presence in the Haagen-Dazs business. The company's recent results indicate that Haagen-Dazs remains an important contributor to its International segment. During the third quarter, the brand delivered mid-single-digit retail sales growth in the International division, supported by product innovation and enhancements to core offerings.

By transferring the shop business to a local operator with a large consumer-facing network while retaining broader exposure to the Haagen-Dazs brand, General Mills is sharpening its focus on areas where it sees stronger opportunities for profitable growth. The move aligns with the company's broader objective of improving efficiency, strengthening its portfolio and positioning the business for better organic growth as it moves toward fiscal 2027.

The Zacks Rank #4 (Sell) stock has tumbled 24.1% over the past three months compared with the industry’s decline of 11.9%.

Better-Ranked Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

Flowers Foods, Inc. (FLO - Free Report) is a leading U.S. bakery company that manufactures and markets packaged bakery foods, including bread, buns, snack cakes and tortillas, under brands such as Nature’s Own, Wonder and Dave’s Killer Bread. FLO carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings indicates year-over-year declines of 1.3% and 20.9%, though the consensus mark for the next financial-year sales and EPS implies year-over-year growth of 0.6% and 5.7%, respectively. FLO delivered a trailing four-quarter earnings surprise of 11.1%, on average.

Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company, producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for a jump of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.

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General Mills Inc (NYSE:GIS, XETRA:GRM) is navigating a difficult stretch, with deteriorating North America Retail volumes, weak category trends, and a series of mechanical profit headwinds clouding the outlook for fiscal 2027, according to a Jefferies analysis.

Nielsen data shows NAR volumes worsened in the fourth fiscal quarter, declining roughly 4% over the last 12 weeks compared to approximately 2% in the prior quarter. Eight of the company's 10 top brands saw sequential volume declines, and only two posted positive dollar sales over the same period. While price realization improved for nine of 10 brands as earlier price investments began to lap, that has not been enough to stabilize the top line.

Cereal volumes remain under pressure, down roughly 2.5% over the last 12 weeks with market share roughly flat, while Totino's represents a sharper drag, declining approximately 12% over the same period. Management has flagged that categories slowed about 1% in the fourth quarter, with no near-term improvement anticipated.

The company's Pet segment also weakened in the quarter, with tracked-channel data showing volumes turned negative in March and remained in decline through quarter-end. Blue Buffalo's Wilderness brand is a key drag, with management acknowledging its struggles and signaling a comprehensive brand revamp. Life Protection Formula continues to hold up with low-single-digit growth, and Tiki Cat stands out with double-digit gains, but neither is expected to meaningfully offset Wilderness pressure in the near term.

General Mills has framed fiscal 2026 as a year of price investment and pound share gains, with fiscal 2027 oriented around product, packaging, and communications to drive dollar share recovery. Jefferies questions the plausibility of that inflection given continued volume deterioration, category softness, and no visible near-term catalysts.

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