Campbell's Shares Fall After Fiscal 2027 Guidance Comes in Below Expectations

Campbell’s Company (NASDAQ:CPB) shares fell 6.2% on Thursday after the food manufacturer issued fiscal 2027 earnings guidance below Wall Street expectations, following fourth-quarter results that matched analyst estimates on adjusted profit but came in below forecasts on revenue.

The company reported fourth-quarter adjusted earnings per share of $0.39, in line with analyst consensus. Revenue reached $2.1 billion, below the $2.15 billion estimate and down 8% year over year.

Organic net sales decreased 1%, primarily reflecting lower volume and mix. The comparable fourth quarter a year earlier included an additional week, which contributed an estimated 7% to sales.

Fiscal 2027 Earnings Guidance Below Consensus

For fiscal 2027, Campbell’s expects adjusted earnings per share of $1.65 to $1.80. The midpoint of $1.73 is 9% below the analyst consensus estimate of $1.90.

The company also forecasts net sales to decline between 4% and 2%, while adjusted EBIT is expected to decrease between 12% and 7%.

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

Fiscal 2026 Revenue Falls to $9.7 Billion

For the full fiscal year, Campbell’s reported revenue of $9.7 billion, representing a 5% decline, while adjusted earnings per share decreased 27% to $2.17.

Adjusted gross profit margin contracted by 210 basis points to 28.5%. The company attributed the change to cost inflation and supply chain expenses, including tariff impacts.

Cash flow from operations totalled $1.0 billion for the year.

Campbell’s Cuts Dividend and Sets New Cost-Savings Target

Campbell’s announced a 36% reduction in its quarterly dividend to $0.25 per share from $0.39, with the company saying the change is intended to accelerate debt reduction.

The company also introduced a cost-savings programme targeting $500 million of savings by fiscal 2030.

Campbell Soup Company stock price