NEW YORK, June 8, 2026, 09:08 (EDT)
- Campbell’s held its fiscal 2026 outlook as adjusted profit for the quarter topped expectations.
- Sales dropped 4% as both Meals & Beverages and Snacks saw weaker volume.
- Campbell’s is set to be dropped from the S&P 500 before the open on June 22, S&P Dow Jones Indices said.
Campbell’s Company shares edged up before the bell Monday, after the soup and snack firm left its full-year outlook in place and reported earnings a touch above estimates. Sales dipped again, and soft volumes remain a drag for the stock. The last quote had Campbell’s at $21.68, up 12.5 cents from the prior close.
Campbell’s has faced pressure after lowering full-year sales and profit outlooks back in March. Snack demand faded, hitting pretzels, chips and other categories, and now investors look for any signal that volumes—unit sales—are no longer falling.
S&P Dow Jones Indices said Friday it will drop Campbell’s from the S&P 500, moving the stock to the S&P SmallCap 600 before the open on June 22. Flex is set to replace Campbell’s on the large-cap index.
Campbell’s reported a 4% slide in net sales to $2.37 billion for its fiscal third quarter ended May 3. Adjusted earnings per share came in at 50 cents, down from 73 cents last year but above the 48 cents analysts were looking for, according to LSEG data seen by Reuters.
Campbell CEO Mick Beekhuizen said third quarter performance was about where the company expected, but margin pressure stayed as revenue softened and inflation continued to hit. “Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds,” Beekhuizen said in the release. He pointed to “early signs of progress” in Snacks and said Campbell is still working on simplifying the business, raising productivity and cutting costs. Business Wire
Organic net sales fell 4%. That strips out things like divestitures and currency swings. Campbell’s still expects organic net sales to drop 1% to 2% for fiscal 2026 and kept its adjusted EPS outlook at $2.15 to $2.25.
Weakness was clear across the segment. Meals & Beverages revenue slipped 4% to $1.43 billion, and Snacks also dropped 4% to $940 million. U.S. soup sales slid 8%, hit by cuts in both condensed and ready-to-serve lines. Salty snacks, crackers and fresh bakery led the snacks decline.
Margins stayed messy. Adjusted gross margin dropped 240 basis points to 27.7%. Campbell’s blamed cost inflation, tariffs and supply-chain costs. Productivity gains, cost savings and pricing moves offset part of the hit, the company said.
Campbell’s is stepping up cost cuts to protect its bottom line. The company reported $20 million in quarterly savings and says it has now hit $200 million toward its goal of $375 million by fiscal 2028. The savings are expected to help cover tariffs and inflation.
This trend isn’t limited to Campbell’s. Last week, Reuters said Kraft Heinz is trying to spark growth with bigger marketing and product development budgets to push back against healthier brands and private-label rivals. Its stock has done better than Campbell’s and Conagra this year. BNP Paribas analyst Max Gumport told Reuters that if volumes don’t pick up, Kraft Heinz will have to spend even more. “That’s not going to be a sustainable outcome after $600 million of investment,” he said. Reuters
Campbell’s profit beat could be covering up softer sales. If budget shoppers stick with cheaper store labels, or if tariffs and commodity costs stay elevated, Campbell’s might need to lean harder on discounts or price cuts to hold onto shelf space, risking another hit to margins. Getting cut from the S&P 500 could also trigger short-term selling by index funds, though that’s a technical move, not about the fundamentals.
