Campbell's reports sales, profit declined in second quarter

CAMDEN, N.J. – The Campbell’s Co. today cited a weaker-than-expected performance in snacks and storm-related shipment disruptions in posting second-quarter net sales of $2.56 billion, down 5% from a year earlier and below the average analyst estimate of $2.61 billion.

Analysts were expecting demand for Campbell’s packaged food to be suppressed by consumers’ shift to lower-priced alternatives. The company has raised prices in recent quarters in response to tariffs and higher beef and aluminum costs.

“Our core meals and beverages portfolio [soup, simple meals and beverages products in retail and foodservice] delivered in-market consumption growth in the second quarter, highlighted by the Rao’s brand surpassing $1 billion in trailing twelve-month net sales. Overall results, however, fell short of our expectations due to weaker-than-expected performance in snacks and storm-related shipment disruptions,” said CEO Mick Beekhuizen. “To stabilize snacks [cookies, crackers, potato chips, pretzels, fresh bakery and frozen products] we are taking decisive action focused on sharpening our value, new product innovation and in-market execution. We are also accelerating cost saving initiatives to mitigate cost headwinds and support continued investment in our brands.

“Given our first half results and the current operating environment, we are lowering our full-year outlook to reflect a more cautious view for the balance of the year. At the same time, our brand portfolio fundamentals remain sound, and we continue to be confident in our ability to create sustainable profitable growth over the long-term.”

Campbell’s said adjusted earnings before interest and taxes declined 24% to $282 million in the quarter to February 1.

Per-share earnings declined 31% to $0.51 on an adjusted basis. Fiscal year-to-date cash flow from operations was $740 million, the company said, and Campbell's returned $263 million to shareholders in the second quarter, including $237 million in dividends.

Campbell's lowered its full-year fiscal 2026 guidance to reflect a more cautious view for the balance of the year.