The Campbell’s Company (CPB) reported a decline in financial performance for fiscal Q4 2026, with adjusted earnings per share at 39 cents, down 37% year-over-year and short of estimates. Net sales fell by 8% to $2.137 billion, compared to the consensus estimate of $2.152 billion, primarily attributed to decreased volume and unfavorable mix, resulting in a 1% decline in organic sales.
Adjusted gross profit dropped 14% to $611 million, leading to a gross margin contraction of 190 basis points to 28.6%. The company is targeting $500 million in cost reductions by fiscal 2030, having achieved about $25 million in savings during Q4. For fiscal 2027, Campbell’s anticipates a decline in both net and organic sales by 2-4%, with adjusted earnings projected to fall between $1.65 and $1.80 per share.
In fiscal 2026, operating cash flow was $1.039 billion, down from $1.131 billion the previous year. The company’s long-term debt reached $6.16 billion, and net leverage stood at 4.3 times. Following significant financial pressure, Campbell’s reduced its quarterly dividend from 39 cents to 25 cents per share, aiming for an annual cash flow reduction of approximately $170 million.
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