CAMDEN, New Jersey, September 3, 2026, 09:49 (EDT) — Campbell’s shares fell 10% after the company reduced its dividend, retaining $167 million per year.
- Campbell’s stock was down 10.0% at $21.40 as of 09:49 EDT.
- The quarterly dividend falls by 36% to $0.25, allowing around $167 million to be retained each year.
- Guidance for fiscal 2027 forecasts an additional drop in adjusted EPS of between 17% and 24%.
Campbell’s Company NASDAQ:CPB dropped 10.0% on Thursday following a dividend reduction. The food manufacturer also projected another year of declining sales and earnings. Shares changed hands at $21.40 at 09:49 EDT, falling from $23.78 Yahoo Finance.
The dividend reduction provides Campbell’s with a significant tool for managing debt. With the most recent weighted share count at 298 million, the reduction preserves approximately $167 million annually. This amount represents around half of the projected adjusted net interest expense for fiscal 2026.
CPB opening selloff
Nasdaq regular session, U.S. dollars
The results demonstrate the reasoning behind management’s focus on preserving cash. Net sales were down 8% to $2.14 billion. Organic sales slipped 1%, and adjusted EBIT decreased by 25% to $242 million SEC filing.
Gross margin declined by 310 basis points to 27.3% as inflation, tariffs, and supply-chain expenses exceeded gains in productivity. Chief Executive Mick Beekhuizen stated performance was “not where it needs to be.”
Dividend cash reset
At the end of the year, Campbell’s cash holdings stood at $394 million. Total borrowings, both short- and long-term, reached $7.14 billion. This leaves net debt at $6.74 billion, meaning the retained dividend cash remains significant, though not game-changing.
For fiscal 2026, operating cash flow totaled $1.0 billion. Capital expenditures reached $361 million. Despite this, the company distributed $496 million to shareholders, primarily as dividends company release.
Fourth-quarter segment split
Meals & Beverages
Snacks
Snacks continues to be the tougher segment to revive. Organic sales dropped 6% and operating profit slipped 34%. Meals & Beverages achieved organic sales growth of 3%, but operating profit was still down 12%.
Campbell’s projects no immediate recovery for fiscal 2027. The company anticipates a 2% to 4% decline in organic sales, while adjusted EPS is estimated between $1.65 and $1.80, representing a drop of 17% to 24%.
Fiscal 2027 guidance
The company aims to achieve $500 million in savings by fiscal 2030. The strategy involves shutting plants, reducing staff, and stricter controls on enterprise spending. These savings will initially need to offset another year of high inflation.
The updated dividend of $21.40 offers a yield of roughly 4.7%. Shares are trading at approximately 12.4 times the midpoint for adjusted EPS guidance. That valuation multiple increases even though the stock price has fallen significantly, due to an anticipated decline in earnings.
Adjusted quarterly earnings per share came in at $0.39, aligning with consensus forecasts Kiplinger earnings calendar. The subsequent decline appears driven by the revised payout and softer outlook, rather than missing headline profit expectations.
Risks: Quicker cost reductions or stronger demand for at-home food products may boost margins. Ongoing inflation, declining snack volumes or higher execution costs could slow progress on cutting debt.
The next immediate indicator is the dividend record date set for October 1. Investors will monitor if snack volumes level off and if net debt starts to decline. The updated dividend will be paid on November 2.
Related articles: Dividends
