Q4 FY2026
Filed Sep 3, 2026Fourth-quarter net sales declined 8%, adjusted EBIT declined 25%, and the company reset its dividend while guiding to further fiscal 2027 declines.
Fourth-quarter sales, gross profit, EBIT and adjusted EPS declined, with Snacks showing a 12% sales decline and a 34% operating-earnings decline. Fiscal 2027 guidance calls for further declines in net sales, adjusted EBIT and adjusted EPS.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $2,137 | – | (8)% |
| Organic net salesnon-GAAP | (1)% | – | (1)% |
| Gross profitGAAP | $583 | – | (17)% |
| Gross profit marginGAAP | 27.3 % | – | (310) pts |
| Adjusted gross profitnon-GAAP | $611 | – | (14)% |
| Adjusted gross profit marginnon-GAAP | 28.6 % | – | (190) pts |
| Marketing and selling expensesGAAP | $188 | – | (7)% |
| Adjusted marketing and selling expensesnon-GAAP | $186 | – | (6)% |
| Administrative expensesGAAP | $164 | – | (5)% |
| Adjusted administrative expensesnon-GAAP | $153 | – | (3)% |
| Research and development expensesGAAP | $28 | – | – |
| Adjusted research and development expensesnon-GAAP | $26 | – | – |
| Other expenses / (income)GAAP | $147 | – | – |
| Adjusted Other expenses / (income)non-GAAP | $4 | – | – |
| Restructuring chargesGAAP | $52 | – | – |
| Earnings before interest and taxesGAAP | $4 | – | n/m |
| Adjusted Earnings before interest and taxesnon-GAAP | $242 | – | (25)% |
| Interest, netGAAP | $83 | – | – |
| Adjusted Interest, netnon-GAAP | $81 | – | – |
| Effective income tax rateGAAP | 26.6 % | – | n/m |
| Adjusted effective income tax ratenon-GAAP | 23.6 % | – | 200 pts |
| Net earnings (loss)GAAP | $(58) | – | n/m |
| Net earnings (loss) attributable to The Campbell's CompanyGAAP | $(60) | – | n/m |
| Adjusted Net earnings attributable to The Campbell's Companynon-GAAP | $120 | – | (35)% |
| Diluted earnings (loss) per share attributable to The Campbell's Company common shareholdersGAAP | $(0.23) | – | n/m |
| Adjusted Diluted net earnings (loss) per share attributable to The Campbell's Company common shareholdersnon-GAAP | $0.39 | – | (37) % |
| Full-year net salesGAAP | $9,744 | – | (5)% |
| Full-year organic net salesnon-GAAP | (2)% | – | (2)% |
| Full-year gross profitGAAP | $2,742 | – | (12)% |
| Full-year gross profit marginGAAP | 28.1 % | – | (230) pts |
| Full-year adjusted gross profitnon-GAAP | $2,778 | – | (12)% |
| Full-year adjusted gross profit marginnon-GAAP | 28.5 % | – | (210) pts |
| Full-year Earnings before interest and taxesGAAP | $852 | – | (24)% |
| Full-year Adjusted Earnings before interest and taxesnon-GAAP | $1,181 | – | (21)% |
| Full-year net earningsGAAP | $405 | – | (33)% |
| Full-year diluted earnings per share attributable to The Campbell's Company common shareholdersGAAP | $1.31 | – | (35)% |
| Full-year adjusted Diluted net earnings per share attributable to The Campbell's Company common shareholdersnon-GAAP | $2.17 | – | (27) % |
| Net cash provided by operating activitiesGAAP | $1,039 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Meals & BeveragesOrganic net sales increased 3%, driven by favorable volume/mix of 3%. Organic net sales growth included an estimated 2-point tailwind as a result of the prior year SAP enterprise-resource planning system implementation for Sovos Brands. | $1,187 | – | (4)% |
| SnacksOrganic net sales decreased 6%, primarily driven by unfavorable volume/mix of 6%, with 1% net price realization. Organic net sales declines were driven primarily by the salty portfolio and sales attributable to third-party partner brands and contract manufacturing. | $950 | – | (12)% |
Full-year fiscal 2027 outlook
- Revenue(4)% to (2)%
- NoteOrganic Net Sales Growth: (4)% to (2)%
- NoteAdjusted EBIT: (12)% to (7)%
- NoteAdjusted EPS: (24)% to (17)%
- NoteAdjusted EPS: $1.65 to $1.80
- NoteThe acquisition of La Regina is expected to contribute a modest benefit to net sales and be neutral to adjusted EPS.
- NoteGuidance does not assume any impacts from new tariffs or changes to existing tariff rates.
Capital returns
- The company returned $496 million to shareholders, primarily through cash dividends.
- Dividends paid were $470, compared to $459.
- Treasury stock purchases were $26, compared to $62.
- The Board of Directors approved a quarterly dividend payment of $0.25 per share, or $1.00 on an annualized basis, a reduction of 36% from the prior quarterly dividend payment of $0.39 per share, or $1.56 on an annualized basis.
- The quarterly dividend is payable on November 2, 2026 to shareholders of record at the close of business on October 1, 2026.
What drove it
- The prior-year fourth quarter had an additional week, estimated to affect net sales by 7%, adjusted EBIT by 8% and adjusted EPS by 7% ($0.06 per share).
- Fourth-quarter adjusted gross profit margin decreased 190 basis points to 28.6%, driven primarily by cost inflation and other supply chain costs inclusive of the impact from tariffs, partially offset by supply chain productivity improvements.
- Meals & Beverages operating earnings decreased 12%, primarily due to lower gross profit resulting from cost inflation and other supply chain costs, as well as unfavorable volume/mix, partly offset by productivity improvements and cost savings initiatives.
- Snacks operating earnings decreased 34%, primarily due to lower gross profit from unfavorable volume/mix, cost inflation and other supply chain costs, partly offset by supply chain productivity improvements.
- The company delivered approximately $25 million in fourth-quarter savings, bringing total savings achieved to approximately $225 million under its prior $375 million savings program.
- The company is launching a new program targeting total cost savings of $500 million by fiscal 2030.
Concerns
- Fourth-quarter GAAP EBIT decreased to $4 million from $269 million.
- Fourth-quarter GAAP diluted EPS was a loss of $(0.23), compared to earnings of $0.48 per share.
- Other expenses were $147 million, including a $117 million combined impairment on the Cape Cod and Kettle Brand trademarks, compared to $29 million in the prior year.
- Full-year adjusted EBIT decreased 21% to $1,181 and adjusted EPS decreased 27% to $2.17.
- The fiscal 2027 outlook reflects an expectation of another year of elevated inflation and a volatile external environment.
- Fiscal 2027 guidance calls for adjusted EPS of $1.65 to $1.80, with adjusted EPS growth of (24)% to (17)%.
What to watch
- Execution of the fiscal 2027 cost savings program targeting $500 million by fiscal 2030.
- Whether Meals & Beverages can sustain organic net sales growth after the estimated 2-point tailwind from the prior-year Sovos Brands SAP implementation.
- Recovery in the Snacks salty portfolio, third-party partner brands and contract manufacturing sales.
- The effect of cost inflation, supply chain costs and tariffs on gross margin.
- Debt reduction following the dividend reset.
- La Regina's expected modest net-sales benefit and neutral adjusted-EPS contribution in fiscal 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $394, compared to $132.
- Short-term borrowings were $977, compared to $762.
- Long-term debt was $6,160, compared to $6,095.
- Total assets were $15,648, compared to $14,896.
- Total liabilities were $11,492, compared to $10,992.
- Net cash provided by operating activities was $1,039, compared to $1,131.
- Purchases of plant assets were $(361), compared to $(426).
- Business acquisition, net of cash acquired was $1.
- Net cash used in financing activities was $(419), compared to $(919).
- Net change in cash and cash equivalents was $262, compared to $24.
Analysis
Campbell's fourth quarter reflected broad operating pressure. Net sales decreased 8% to $2,137, while organic net sales decreased 1%. The company identified an estimated 7-point effect from the prior-year extra week. Meals & Beverages reported a 4% sales decline but 3% organic growth, whereas Snacks sales declined 12% and organic sales declined 6%. Snacks volume/mix declined 6%, and the company cited pressure in its salty portfolio, third-party partner brands and contract manufacturing.
Margins and earnings weakened substantially. GAAP gross profit fell 17% to $583 and gross profit margin decreased 310 basis points to 27.3%. Adjusted gross profit declined 14% to $611 and adjusted gross profit margin declined 190 basis points to 28.6%, with cost inflation and supply chain costs inclusive of tariffs only partly offset by productivity improvements. Adjusted EBIT declined 25% to $242, while GAAP EBIT declined to $4 from $269. A $117 million combined impairment of the Cape Cod and Kettle Brand trademarks contributed to other expenses of $147 million.
For fiscal 2026, net sales decreased 5% to $9,744 and organic net sales decreased 2%, while adjusted EBIT decreased 21% to $1,181 and adjusted diluted EPS decreased 27% to $2.17. Full-year GAAP diluted EPS decreased to $1.31 from $2.01. Cash flow from operations was $1,039, compared to $1,131, and purchases of plant assets were $(361). Cash and cash equivalents increased to $394, while short-term borrowings were $977 and long-term debt was $6,160.
Capital allocation is being redirected toward deleveraging. The company returned $496 million to shareholders, primarily through cash dividends, but cut the quarterly dividend to $0.25 per share from $0.39 per share. Campbell's also reported approximately $225 million of total cost savings under its prior program and launched a new enterprise-wide program targeting total cost savings of $500 million by fiscal 2030. The program includes remaining initiatives under the prior program, the third-quarter fiscal 2026 overhead savings initiative and an enterprise spend optimization plan.
Fiscal 2027 guidance signals another year of earnings pressure. The company expects net sales and organic net sales growth of (4)% to (2)%, adjusted EBIT growth of (12)% to (7)% and adjusted EPS growth of (24)% to (17)%, with adjusted EPS of $1.65 to $1.80. Management expects La Regina to provide a modest benefit to net sales and be neutral to adjusted EPS. The outlook assumes an environment of continued volatility and elevated inflation, includes the company's current understanding of government policy and tariffs, and does not assume effects from new tariffs or changes to existing tariff rates.
Management, verbatim
Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds.
Mick Beekhuizen, Campbell’s President and Chief Executive Officer
Our performance is not where it needs to be, and we are taking decisive action to improve it.
Mick Beekhuizen, Campbell’s President and Chief Executive Officer
The steps we are taking are designed to improve growth, expand margins, reduce leverage, and position Campbell's for sustainable long-term value creation.
Mick Beekhuizen, Campbell’s President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics
- Free cash flow
- Fiscal 2027 gross margin guidance
- Fiscal 2027 operating expenses guidance
- Fiscal 2027 tax-rate guidance
- GAAP fiscal 2027 guidance
- Prior guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.