company_name (CPB) ticker CPB Financial Results Summary
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Campbell's Company (CPB) Q4 2026: Significant Decline in Sales and Earnings — Disappointing Quarter
In the fourth quarter of fiscal 2026, Campbell's Company reported a notable decline in performance compared to the previous year. Net sales decreased by $184 million, or 8%, to $2.1 billion, while adjusted earnings per share (EPS) fell by 37% to $0.39. This stark drop in both revenue and earnings signals a disappointing quarter for shareholders.
Key Financial Metrics:
- Net Sales: $2.1 billion, down $184 million or -8% YoY
- Adjusted EPS: $0.39, down $0.23 or -37% YoY
- EBIT: $4 million, down $265 million or -98% YoY
- Adjusted EBIT: $242 million, down $79 million or -25% YoY
- Organic Net Sales: Decreased 1% YoY
Analyst View:
This quarter's results are disappointing for shareholders, primarily due to the significant declines in both revenue and earnings. The company faced inflation-driven margin pressures and a decrease in volume/mix, which contributed to the overall decline. The reported loss of $0.23 per share, compared to earnings of $0.48 per share in the prior year, further emphasizes the challenges Campbell's is currently facing.
The company also announced a reset of its dividend, reducing it by 36% to $0.25 per share, which reflects a strategic move to accelerate debt reduction. This decision may be viewed negatively by income-focused investors but is necessary for improving the company's financial health.
Additional Highlights:
- Full-Year Results: For the full fiscal year 2026, net sales decreased by 5% to $9.7 billion, and adjusted EPS fell by 27% to $2.17.
- Cost Savings Initiatives: Campbell's is targeting $500 million in cost savings by fiscal 2030, with approximately $225 million already achieved under a previous program.
- Cash Flow: Cash flow from operations was $1.0 billion, down from $1.1 billion in the prior year.
Forward-Looking Guidance:
Looking ahead, Campbell's has provided guidance for fiscal 2027, expecting net sales to decline between 4% to 2% and adjusted EPS to fall between $1.65 to $1.80. Investors should closely monitor the company's ability to execute its cost-saving initiatives and the impact of inflation on margins. Additionally, the performance of the newly acquired La Regina brand will be crucial in assessing future growth potential.
In summary, Campbell's fourth quarter results reflect significant challenges, and while the company is taking steps to address its financial position, the immediate outlook remains cautious. Investors should watch for updates on cost-saving measures and any changes in consumer demand that could influence future performance.
Note: All amounts in the following tables are in millions.
| Three Months | August 2, 2026 | August 3, 2025 |
|---|---|---|
| Net sales | $2,137 | $2,321 |
| Costs and expenses | ||
| Cost of products sold | $1,554 | $1,616 |
| Marketing and selling expenses | $188 | $202 |
| Administrative expenses | $164 | $172 |
| Research and development expenses | $28 | $26 |
| Other expenses / (income) | $147 | $29 |
| Restructuring charges | $52 | $7 |
| Total costs and expenses | $2,133 | $2,052 |
| Earnings before interest and taxes | $4 | $269 |
| Interest, net | $83 | $85 |
| Earnings (loss) before taxes | $-79 | $184 |
| Taxes on earnings (loss) | $-21 | $39 |
| Net earnings (loss) | $-58 | $145 |
| Less: Net earnings (loss) attributable to noncontrolling interests | $2 | $— |
| Net earnings (loss) attributable to The Campbell's Company | $-60 | $145 |
| Less: Accretion of redeemable noncontrolling interests | $5 | $— |
| Net earnings (loss) attributable to The Campbell's Company common shareholders - Basic | $-65 | $145 |
| Less: Unrecognized accretion on deferred consideration | $4 | $— |
| Net earnings (loss) attributable to The Campbell's Company common shareholders - Diluted | $-69 | $145 |
| Diluted Earnings (loss) per share attributable to The Campbell's Company common shareholders - Basic | $-.22 | $.49 |
| Diluted Earnings (loss) per share attributable to The Campbell's Company common shareholders - Diluted | $-.23 | $.48 |
| Weighted average shares outstanding - Basic | 298 | 298 |
| Weighted average shares outstanding - Diluted | 304 | 299 |
| August 2, 2026 | August 3, 2025 | |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | $394 | $132 |
| Accounts receivable | $578 | $583 |
| Inventories | $1,612 | $1,424 |
| Other current assets | $136 | $93 |
| Total current assets | $2,720 | $2,232 |
| Plant assets, net of depreciation | $2,868 | $2,767 |
| Goodwill | $5,321 | $4,991 |
| Other intangible assets, net of amortization | $4,198 | $4,356 |
| Other assets | $541 | $550 |
| Total assets | $15,648 | $14,896 |
| Current liabilities | ||
| Short-term borrowings | $977 | $762 |
| Accounts payable | $1,377 | $1,332 |
| Accrued liabilities | $860 | $688 |
| Dividends payable | $118 | $120 |
| Accrued income taxes | $4 | $4 |
| Total current liabilities | $3,336 | $2,906 |
| Long-term debt | $6,160 | $6,095 |
| Deferred taxes | $1,393 | $1,353 |
| Other liabilities | $603 | $638 |
| Total liabilities | $11,492 | $10,992 |
| Commitments and contingencies | ||
| Redeemable noncontrolling interests | $304 | $— |
| The Campbell's Company shareholders' equity | ||
| Preferred stock; authorized 40 shares; none issued | $— | $— |
| Capital stock, $0.0375 par value; authorized 560 shares; issued 323 shares | $12 | $12 |
| Additional paid-in capital | $412 | $418 |
| Earnings retained in the business | $4,620 | $4,694 |
| Capital stock in treasury, at cost | $-1,182 | $-1,207 |
| Accumulated other comprehensive loss | $-12 | $-15 |
| Total The Campbell's Company shareholders' equity | $3,850 | $3,902 |
| Noncontrolling interests | $2 | $2 |
| Total equity | $3,852 | $3,904 |
| Total liabilities, redeemable noncontrolling interests and equity | $15,648 | $14,896 |
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