10-Q · June 8, 2026
Campbell Soup Company reported Q3 2026 results with net sales of $2.366 billion, a 4% decrease from the prior year, and EPS of $0.41. Despite missing consensus estimates of $2.383 billion in revenue, EPS slightly…
Earnings analysis · 10-K
CPB earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
Campbell's 2026 results show broad deterioration despite ongoing transformation efforts: revenue fell 5%, gross margin declined 230 basis points, diluted EPS dropped to $1.31, and both segments reported lower operating…
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Campbell's 2026 results show broad deterioration despite ongoing transformation efforts: revenue fell 5%, gross margin declined 230 basis points, diluted EPS dropped to $1.31, and both segments reported lower operating earnings. The Snacks business remains the central operational problem, with sales down 6%, operating earnings down 28%, and new Kettle Brand and Cape Cod impairments. Management is responding with cost reductions, lower capital spending, suspended buybacks and balance-sheet prioritization, but tariffs, refinancing needs and weak brand performance leave the near-term outlook challenging.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.31
What stood out
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Focused branded-food strategy
Campbell's strategy is centered on strengthening its position in U.S. everyday cooking and snacking, using consumer insights, food and packaging innovation, improved product availability, revenue growth management, digital advancement and cost savings. Walmart and its affiliates represented approximately 22% of consolidated net sales in 2026, illustrating the reach of its branded portfolio but also customer concentration.
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Three-year earnings deterioration
Revenue declined 5% to $9.744 billion in 2026, following 6% growth to $10.253 billion in 2025 and revenue of $9.636 billion in 2024. Diluted EPS fell to $1.31 from $2.01 in 2025 and $1.89 in 2024, while gross margin declined to 28.1% from 30.4% and 30.8%, respectively.
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Snacks remains the key weakness
Meals & Beverages remained the larger segment at $5.928 billion of sales and $943 million of operating earnings in 2026, while Snacks weakened to $3.816 billion of sales and $386 million of operating earnings. Snacks operating earnings fell 28% in 2026 after declining 14% in 2025, whereas Meals & Beverages operating earnings fell 14% in 2026 after rising 10% in 2025.
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Cash generation softened
Cash flow from operations was $1.039 billion in 2026, down from $1.131 billion in 2025 and $1.185 billion in 2024. Capital expenditures also declined to $361 million from $426 million and $517 million, with 2027 capital expenditures expected to be approximately $300 million.
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Secured Rao's supply relationship
The company acquired a 49% interest in La Regina for aggregate consideration of $286 million, including $146 million paid in cash and $140 million payable in cash or shares on May 4, 2027. La Regina currently produces all of Rao's tomato-based pasta sauces, and the transaction added $335 million of goodwill to Meals & Beverages.
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Debt reduction takes priority
Capital allocation is shifting toward balance-sheet management: the company paid $470 million of dividends in 2026 and repurchased only $26 million of stock, versus $62 million in 2025 and $67 million in 2024. Management does not anticipate repurchasing shares in 2027, while $500 million of senior notes matures in March 2027.
What to watch
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Tariffs threaten margins
Tariffs, inflation and supply-chain costs materially pressured profitability. Management estimated a negative 230-basis-point gross-margin impact from the gross effect of tariffs in 2026 and estimated that tariffs reduced EPS by approximately $0.21; 2027 inflationary pressure is expected to persist.
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Further Snacks impairments possible
Snacks experienced another year of deterioration and generated new impairment charges: $60 million for Kettle Brand and $57 million for Cape Cod. Trademarks with approximately 10% or less of excess fair-value coverage had aggregate carrying value of $1.225 billion, and a 1% increase in the weighted-average cost of capital would imply approximately $45 million and $25 million of additional impairment for Kettle Brand and Cape Cod, respectively.
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Refinancing and liquidity exposure
Liquidity and refinancing remain material constraints. Short-term borrowings due within one year were $977 million, including $373 million of commercial paper, and $500 million of senior notes matures in March 2027. The company also had $2.014 billion of purchase commitments as of August 2, 2026, including $1.408 billion due within 12 months.
Management's outlook
The 10-K does not provide a full-year revenue or EPS outlook. It does disclose approximately $300 million of expected 2027 capital expenditures and approximately $500 million of annual ongoing savings by the end of 2030 from the 2027 cost-savings initiatives.
Earlier filings 4
10-Q · March 11, 2026
Campbell reported Q2 net sales of $2,564 million (down 5% y/y) with gross margin compressing to 28.0% (down 250 bps) and diluted EPS of $0.48 (down $0.10 vs prior-year quarter). Both reportable segments declined (Meals…
10-Q · June 2, 2025
Campbell reported Q3 net sales up 4% year-over-year to $2,475 million, driven by Meals & Beverages (Sovos Brands contribution) while Snacks declined. Gross margin compressed 150 bps to 29.4% and GAAP EPS fell to $0.22…
10-Q · March 5, 2025
Campbell reported quarterly net sales of $2,685 million, up 9% year-over-year primarily from the Sovos Brands acquisition, but gross margin compressed to 30.5% (down 110 bps) and GAAP diluted EPS fell to $0.58 from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.