Overview

• US packaged foods maker's fiscal Q3 net sales fell 4% on lower volume/mix

• Adjusted EPS for fiscal Q3 declined 32%, reflecting lower adjusted gross profit

• Company reaffirmed full-year fiscal 2026 guidance despite margin headwinds

Outlook

• Campbell's reaffirms fiscal 2026 guidance for organic net sales, adjusted EBIT and adjusted EPS

• Company expects fiscal 2026 organic net sales to decline 2% to 1% from prior yr

• Campbell's sees fiscal 2026 adjusted EPS between $2.15 and $2.25

Result Drivers

• LOWER VOLUME/MIX - Co said net sales fell 4% due to lower volume/mix in both Meals & Beverages and Snacks segments, with U.S. soup and salty snacks underperforming

• COST INFLATION AND TARIFFS - Co said adjusted gross profit margin fell due to cost inflation and other supply chain costs, including tariffs

• COST SAVINGS INITIATIVES - Supply chain productivity improvements and cost savings initiatives partially offset margin headwinds, per management

Company press release: ID:nBwYFcxpa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales		$2.40 bln
Q3 Adjusted EPS		$0.50
Q3 EPS		$0.41
Q3 Gross Margin		27.50%
Q3 Adjusted EBIT		$274 mln
Q3 Adjusted Gross Margin		27.70%
Q3 Adjusted Gross Profit		$656 mln
Q3 EBIT		$239 mln
Q3 Gross Profit		$650 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 13 "hold" and 7 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Campbell's Co is $20.00, about 7.7% below its June 5 closing price of $21.68

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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