Campbell’s Company Reports Q4 2025 Results, Sets 2026 Guidance

The Campbell’s Company (NASDAQ:CPB) has released its financial results for the fourth quarter of fiscal 2025, ending August 3, 2025, along with its full-year fiscal 2026 guidance. The results reflect a mixed performance with both achievements and challenges as the company navigates a complex market environment.

Campbell’s Company Beats Expectations Despite Sales Dip

In the fourth quarter of fiscal 2025, Campbell’s Company reported net sales of $2.3 billion, a 1% increase from the previous year. However, on an organic basis, net sales decreased by 3%, primarily due to lower volume/mix and the impact of divestitures. The adjusted earnings before interest and taxes (EBIT) declined by 2% to $321 million, while the adjusted earnings per share (EPS) decreased by 2% to $0.62, slightly surpassing the expected EPS of $0.57. This performance was influenced by cost inflation and increased marketing and selling expenses, partially offset by supply chain productivity improvements and favorable net price realization.

Comparing the actual results against expectations, Campbell’s outperformed the anticipated EPS of $0.57, achieving $0.62, despite facing a challenging market environment with category softness in the Snacks division and the expected reversal of favorable shipment timing from the third quarter. The Meals & Beverages segment saw strong in-market performance, driven by leadership brands like Campbell’s and Rao’s, while the Snacks division experienced modest sequential improvement in net sales and in-market consumption.

CEO Mick Beekhuizen highlighted the company’s focus on execution in a dynamic operating environment, with the Meals & Beverages segment benefiting from continued consumer interest in cooking at home. The acquisition of Sovos Brands contributed positively to the full-year results, helping Campbell’s navigate the complexities of the current market landscape.

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Campbell’s Company Expects Fiscal 2026 to be Challenging

Looking ahead to fiscal 2026, Campbell’s Company has set its guidance with an emphasis on delivering topline growth through incremental marketing investments and consumer-led innovation. The company anticipates a challenging year with continued input cost pressures primarily driven by tariffs, which are expected to impact earnings. Despite these challenges, Campbell’s remains committed to achieving sustainable growth and mitigating near-term cost pressures.

The fiscal 2026 guidance reflects a projected range of -1% to 1% for organic net sales growth, with a focus on maintaining momentum in Meals & Beverages and stabilizing the Snacks segment in the latter half of the year. Adjusted EBIT is expected to decline by 13% to 9%, and adjusted EPS is projected to fall by 18% to 12%, reflecting the impact of divestitures and the absence of the additional week that contributed to fiscal 2025 results.

Campbell’s plans to address these challenges through increased productivity and cost savings initiatives, aiming to offset approximately 60% of the tariff impact in fiscal 2026. The company also targets an adjusted effective tax rate of approximately 24% and adjusted interest expense between $320 million and $325 million. With these strategic efforts, Campbell’s is poised to navigate the evolving market conditions and continue its legacy as a trusted provider of food and beverages.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.