Campbell's Q4 Results Show Loss, Cuts Dividend

Campbell’s Company (NASDAQ: CPB) reported a GAAP loss for the 13-week period ended Aug. 2, 2026, in a Sept. 3 press release. Softer sales and inflation-driven margin pressure led management to cut the quarterly dividend and lower fiscal 2027 guidance.

Quarterly Results and Margins

Campbell’s reported GAAP net sales of about $2.14 billion, down 8.0% year over year and roughly $50 million below analyst estimates. The decline included a 7-percentage-point drag from an extra week in the prior-year quarter. Organic net sales fell 1.0% as volume and mix softened. The company swung to a GAAP net loss of approximately $60–69 million, or a diluted loss of $0.23 per share, while adjusted earnings were $0.39 per share.

GAAP earnings before interest and taxes (EBIT) dropped to about $4 million from $269 million a year earlier. Adjusted EBIT declined 25.0% to roughly $242 million. Gross profit fell 17.0% to about $583 million, compressing GAAP gross margin by 310 basis points to 27.3%. Adjusted gross profit was about $611 million, with adjusted gross margin narrowing 190 basis points to 28.6%. Management attributed roughly 530 basis points of gross-margin pressure to inflation in raw materials, packaging, and logistics. Marketing and selling expenses fell about 7.0% to $188 million, reflecting reduced promotional and advertising investments.

For fiscal 2026, Campbell’s reported GAAP net sales of about $9.7 billion, down 5.0% from the prior year, and GAAP EBIT of roughly $852 million, a 24.0% decline. Adjusted EBIT totaled about $1.2 billion. GAAP earnings per share fell 35.0% to $1.31, while adjusted EPS was $2.17. Operating cash flow declined to approximately $1.0 billion, capital spending dropped to $361 million, and the company returned $496 million to shareholders, primarily through dividends.

Campbell’s CEO said, “Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds.”

Segment Performance

The meals and beverages segment showed resilience, with net sales of about $1.2 billion, down 4.0% reported but up 3.0% organically. Segment operating earnings declined 12.0% to $181 million, supported by at-home cooking trends, broth growth, and momentum at the Rao’s brand, which offset declines in ready-to-eat soup.

The snacks segment reported sales near $950 million, down 12.0% reported and 6.0% organically. Segment operating earnings fell 34.0% to about $101 million as demand softened for premium snacks amid intensified competition in higher-priced snack categories and pantry condiments.

Guidance and Dividend Cut

For fiscal 2027, Campbell’s expects net sales to decline 2.0%–4.0% and adjusted EPS of $1.65 to $1.80 per share, signaling adjusted EBIT below the fiscal 2026 level. The outlook reflects continued weak consumer spending and ongoing inflation in raw materials, packaging, logistics, and tariffs, partially offset by productivity and cost-saving initiatives. Management expects meals and beverages to remain relatively resilient while snacks continue to face pressure.

The board cut the quarterly dividend by more than one-third to $0.25 per share, aiming to reduce annual cash outflows by about $170 million to support debt reduction. Management outlined a fiscal 2027 plan focused on cost reductions, selective pricing, and more targeted marketing.

Campbell’s completed the La Regina acquisition on May 4, 2026, consolidating the acquired business into its results from that date.