Campbell’s (NASDAQ:CPB) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Campbell’s (NASDAQ:CPB) released its quarterly earnings data on Wednesday. The company reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.06), FiscalAI reports. Campbell’s had a net margin of 5.48% and a return on equity of 19.96%. The business had revenue of $2.56 billion during the quarter. During the same quarter in the previous year, the company earned $0.74 EPS. The business’s revenue was down 4.5% compared to the same quarter last year. Campbell’s updated its FY 2026 guidance to 2.150-2.250 EPS.

Here are the key takeaways from Campbell’s’ conference call:

• Snack margins plunged to about 7% (down ~390 basis points) driven by fresh bakery issues and deleverage from a ~6% net sales decline; management expects modest margin improvement in Q3 and stronger recovery in Q4 but called the near-term outlook challenging.
• Fresh bakery suffered manufacturing and distribution disruptions (worsened by winter storms); a cross-functional team is seeing measurable improvements and the company expects service and on‑shelf availability to normalize by Q4.
• Management is prioritizing cash and debt reduction (tightening CapEx and working capital, pausing share repurchases, keeping the dividend unchanged) while pursuing $100M of overhead savings and making an initial ~$140–$150M payment for the La Regina deal, with an equity option on the later payment.
• Meals & beverages strength led by Rao’s (Rao’s in‑market consumption +14.5% in Q2 and expected high‑single‑digit growth for the year) and management is launching Campbell’s Condensed Sauces in June to leverage cooking occasions growth.

Campbell’s Price Performance

Shares of CPB stock traded up $0.48 during trading hours on Friday, hitting $22.13. The company’s stock had a trading volume of 893,175 shares, compared to its average volume of 7,953,340. The business has a fifty day moving average of $26.88 and a 200-day moving average of $29.45. The stock has a market cap of $6.60 billion, a price-to-earnings ratio of 12.03, a P/E/G ratio of 8.91 and a beta of -0.03. The company has a current ratio of 1.01, a quick ratio of 0.34 and a debt-to-equity ratio of 1.66. Campbell’s has a twelve month low of $21.59 and a twelve month high of $40.59.

Campbell’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Thursday, April 2nd will be issued a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend is Thursday, April 2nd. Campbell’s’s dividend payout ratio is 80.83%.

Insiders Place Their Bets

In related news, EVP Charles A. Brawley III sold 11,550 shares of Campbell’s stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $28.14, for a total transaction of $325,017.00. Following the completion of the sale, the executive vice president owned 43,777 shares in the company, valued at approximately $1,231,884.78. This trade represents a 20.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Anthony Sanzio sold 2,700 shares of the firm’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $26.51, for a total transaction of $71,577.00. Following the sale, the executive vice president directly owned 25,264 shares in the company, valued at $669,748.64. This represents a 9.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 19.78% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CPB. Stance Capital LLC acquired a new position in shares of Campbell’s in the 3rd quarter valued at $27,000. SBI Securities Co. Ltd. grew its position in Campbell’s by 66.8% during the second quarter. SBI Securities Co. Ltd. now owns 961 shares of the company’s stock valued at $29,000 after acquiring an additional 385 shares during the period. Flagship Harbor Advisors LLC purchased a new position in shares of Campbell’s in the 4th quarter worth about $29,000. Sittner & Nelson LLC purchased a new position in Campbell’s in the fourth quarter valued at approximately $29,000. Finally, Los Angeles Capital Management LLC acquired a new position in shares of Campbell’s during the 4th quarter valued at $29,000. Institutional investors and hedge funds own 52.35% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Weiss Ratings lowered shares of Campbell’s from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, January 5th. Stifel Nicolaus decreased their price target on shares of Campbell’s from $30.00 to $25.00 and set a “hold” rating for the company in a research note on Thursday. Wells Fargo & Company lowered shares of Campbell’s from an “equal weight” rating to an “underweight” rating and reduced their price objective for the company from $28.00 to $20.00 in a report on Thursday. Barclays decreased their price target on Campbell’s from $27.00 to $23.00 and set an “underweight” rating for the company in a report on Thursday. Finally, Royal Bank Of Canada lowered their target price on shares of Campbell’s from $30.00 to $26.00 and set a “sector perform” rating on the stock in a research report on Thursday. Two analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, Campbell’s currently has an average rating of “Reduce” and a consensus target price of $27.88.

Campbell’s News Summary

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

• Positive Sentiment: MarketBeat highlights that the share-price drop has pushed CPB’s yield higher and that institutional buyers are accumulating, which could provide downside support for the stock. Campbell Soup Company Is High-Priority for Income Watch Lists
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating (with a $30 target), reflecting mixed views — some analysts see upside if execution improves, while others remain cautious. DA Davidson rating note
• Negative Sentiment: Q2 results missed expectations: EPS $0.51 vs. ~$0.57 expected and revenue down ~4.5–5% year-over-year; management cited weak snacks demand and cost pressures — the core immediate catalyst for the stock drop. Campbell’s Q2 Earnings & Revenues Miss Estimates, Sales Down 5% Y/Y
• Negative Sentiment: Commentary called this “one of the worst quarters” in years: organic sales fell and the company pointed to promotional pressure, execution issues, tariffs and inflationary costs weighing on margins and outlook. Campbell’s posts one of worst quarters in years: revenues fell 5%, organic sales dropped 3%
• Negative Sentiment: Following the results, multiple analysts trimmed price targets and ratings (Deutsche Bank cut its target to $23 and moved to hold; other firms lowered targets or moved to equal-weight/sector-perform), increasing near-term selling pressure. Price Target Lowered to $23.00 at Deutsche Bank Aktiengesellschaft
• Negative Sentiment: Coverage notes and newswires report the shares gapped down and hit multi‑year lows after the guidance cut and soft commentary on snacks — momentum that likely amplified the decline today. Campbell’s Shares Gap Down Following Weak Earnings
• Negative Sentiment: Barron’s summarises a broader analyst caution (Wells Fargo and others warning on staples) — the sector headwinds (inflation, promotional activity, shifting consumer budgets) raise the risk that near-term recovery will be slow. 3 Food Stocks With Big Yields. Why Wells Fargo Says Be Careful.

Campbell’s Company Profile

Campbell’s (NASDAQ: CPB) is a leading manufacturer of shelf-stable foods and beverages, best known for its iconic soups and broths. Headquartered in Camden, New Jersey, the company offers a diverse portfolio of products designed to meet consumer demand for convenient, affordable meals and snacks. Since its founding in 1869, Campbell’s has grown through a combination of organic innovation and strategic acquisitions to expand its presence in the food industry.

The company’s brand portfolio includes Campbell’s Condensed Soups, V8 juices, Prego pasta sauces, Swanson broths and stocks, Pace salsas and dips, and Pepperidge Farm baked snacks.