Campbell’s (NASDAQ:CPB) Releases Earnings Results, Beats Expectations By $0.02 EPS

Campbell’s (NASDAQ:CPB) posted its earnings results on Monday. The company reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.02, FiscalAI reports. The company had revenue of $2.37 billion during the quarter. Campbell’s had a net margin of 5.48% and a return on equity of 19.96%. The business’s revenue for the quarter was down 4.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.22 earnings per share. Campbell’s updated its FY 2026 guidance to 2.150-2.250 EPS.

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

• Campbell’s said fiscal 2027 is facing a tougher cost backdrop, with base inflation around 3% before the Middle East conflict and potentially another 2%-3% of incremental inflation if oil stays elevated, driving a possible 5%-6% inflation environment.
• Management expects to rely heavily on productivity, SG&A savings, RGM, and trade-spend optimization to offset pressure, but said price increases are a last resort if those actions are not enough.
• The company is prioritizing portfolio simplification in snacks, including focusing Goldfish on core households with kids, reducing low-volume SKU tails, and concentrating innovation and advertising behind fewer, more meaningful initiatives.
• Snacks margins improved sequentially in Q3, but management said they are still well below target and that salty snacks will likely remain under pressure in the near term while simplification and execution changes take time.
• For Q4, Campbell’s expects meals and beverages to remain a strength, supported by resilient at-home cooking demand, Rao’s recovery after ERP-related disruption, and innovation in soups and sauces; overall net sales are expected to be flattish to slightly up for the quarter.

Campbell’s Stock Performance

Campbell’s stock opened at $21.49 on Tuesday. The firm’s fifty day moving average price is $20.89 and its 200-day moving average price is $24.89. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.51 and a current ratio of 1.01. The stock has a market cap of $6.41 billion, a P/E ratio of 11.74 and a beta of 0.02. Campbell’s has a fifty-two week low of $19.56 and a fifty-two week high of $34.56.

Campbell’s Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Thursday, July 2nd will be given a dividend of $0.39 per share. The ex-dividend date is Thursday, July 2nd. This represents a $1.56 annualized dividend and a dividend yield of 7.3%. Campbell’s’s dividend payout ratio (DPR) is 85.25%.

Campbell’s News Roundup

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

• Positive Sentiment: Campbell’s posted Q3 EPS of $0.50, beating the $0.48 consensus estimate, which suggests profits held up better than expected despite a tough operating environment. Campbell’s (CPB) Surpasses Q3 Earnings Estimates
• Positive Sentiment: The company reaffirmed its FY2026 outlook, which can reassure investors that management still sees its annual targets as achievable despite inflation and weaker consumer spending. Packaged food firm Campbell’s reaffirms annual forecast on weak consumer spending
• Positive Sentiment: Management said Meals & Beverages remains a source of strength, and the company is pursuing aggressive cost cuts and portfolio simplification to offset inflation pressure. CPB Q3 Earnings Call Highlights Inflation Risks and Snack Reset
• Neutral Sentiment: Q3 revenue fell to $2.37 billion, down 4.4% year over year, showing that top-line softness is still an issue even as profitability improved. Campbell earnings report and conference call
• Negative Sentiment: The snack business remains under pressure from weak demand, and multiple reports flagged inflation, tariffs, and supply-chain costs as margin headwinds. Campbell’s Sales Fall on Continued Weak Demand for Snacks

Institutional Trading of Campbell’s

Several institutional investors and hedge funds have recently made changes to their positions in CPB. Two Sigma Investments LP raised its position in shares of Campbell’s by 534.8% during the 3rd quarter. Two Sigma Investments LP now owns 4,937,170 shares of the company’s stock valued at $155,916,000 after buying an additional 4,159,398 shares in the last quarter. Brandywine Managers LLC purchased a new stake in shares of Campbell’s during the 4th quarter valued at $92,793,000. Lazard Asset Management LLC purchased a new stake in shares of Campbell’s during the 1st quarter valued at $61,261,000. Invesco Ltd. raised its position in shares of Campbell’s by 42.6% during the 3rd quarter. Invesco Ltd. now owns 7,995,733 shares of the company’s stock valued at $252,505,000 after buying an additional 2,387,575 shares in the last quarter. Finally, UBS Group AG raised its position in shares of Campbell’s by 175.7% during the 3rd quarter. UBS Group AG now owns 3,730,947 shares of the company’s stock valued at $117,823,000 after buying an additional 2,377,488 shares in the last quarter. Hedge funds and other institutional investors own 52.35% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on CPB shares. Stifel Nicolaus dropped their price target on shares of Campbell’s from $25.00 to $20.00 and set a “hold” rating on the stock in a research note on Tuesday, April 21st. Zacks Research upgraded shares of Campbell’s from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 12th. Barclays lowered their target price on shares of Campbell’s from $21.00 to $19.00 and set an “underweight” rating on the stock in a research note on Monday. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Campbell’s in a research note on Thursday. Finally, UBS Group lowered their target price on shares of Campbell’s from $20.00 to $19.00 and set a “sell” rating on the stock in a research note on Tuesday, June 2nd. Thirteen research analysts have rated the stock with a Hold rating and seven have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $22.63.

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.