TLDR

  • Campbell’s delivered adjusted EPS of 51 cents for Q2, falling short of the 57-cent Wall Street consensus
  • Revenue declined 4.5% year-over-year to $2.56 billion, missing analyst projections of $2.61 billion
  • Snack division revenue tumbled 6.2% to $914 million — the first sub-$1 billion result in four years
  • Management reduced full-year adjusted EPS forecast to $2.15–$2.25 from prior range of $2.40–$2.55
  • Shares have declined more than 40% over the trailing 12 months, putting S&P 500 inclusion in jeopardy

Campbell’s delivered disappointing quarterly results, triggering an immediate market response. Shares plummeted 5.4% during premarket hours Wednesday, positioning the stock to reach its weakest level since August 2003.

The food giant announced adjusted earnings of 51 cents per share for its fiscal second quarter, falling below the analyst consensus of 57 cents. Revenue totaled $2.56 billion, representing a 4.5% year-over-year decrease and missing the $2.61 billion Wall Street estimate.


CPB Stock Card
Campbell Soup Company, CPB

This marked the company’s second consecutive year-over-year revenue decline and its first earnings shortfall since the fourth quarter of 2023.

Both major business segments experienced weakness. The snacks division — featuring brands like Goldfish, Snyder’s pretzels, Cape Cod chips, and Pepperidge Farm — recorded a 6.2% decline to $914 million. This represents the first time in four years that snack revenue has fallen beneath the $1 billion threshold.

The meals and beverages division, encompassing Campbell’s core soup products, Prego, and V8, decreased 3.7% to $1.65 billion. Strength in Rao’s sauce sales provided some support, though insufficient to counterbalance broader category weakness.

Net income dropped 16.2% to $145 million during the quarter.

CEO Mick Beekhuizen addressed the challenging performance. “Given our first half results and the current operating environment, we are lowering our full-year outlook to reflect a more cautious view for the balance of the year,” he stated.

Guidance Cut

Management revised its full-year organic net sales outlook to a 1%–2% decline, compared with the previous projection ranging from a 1% decline to 1% growth. The adjusted EPS forecast was reduced to $2.15–$2.25, representing a substantial decrease from the earlier estimate of $2.40–$2.55.

Leadership anticipates adjusted earnings will decline 12%–18% in fiscal 2026 versus the prior year, primarily due to tariff-related expenses on steel and aluminum utilized in canned product packaging. Beekhuizen indicated the company would accelerate cost-reduction initiatives to “stabilize” the snacks operation.

Campbell’s has set a goal of achieving $375 million in cost savings by fiscal 2028.

S&P 500 Membership at Risk

Campbell’s has maintained S&P 500 membership since the index’s 1957 inception — standing among approximately 50 original constituents that remain today. That long-standing position now faces uncertainty.

Shares have dropped more than 40% during the past 12 months, contrasting sharply with the S&P 500’s 21.7% advance over the identical timeframe. Market capitalization stood around $7.5 billion before the earnings release. Following the premarket decline, that valuation was projected to fall to approximately $6.96 billion — representing the second-smallest market cap in the index.

Last Friday, S&P Dow Jones Indices removed four companies including Match Group and Molina Healthcare from the S&P 500 after they ranked among the index’s smallest members.

Wall Street analysts maintain an average 12-month price target of $28 on CPB, representing roughly 12% upside from current levels near $25.