Campbell’s reported fiscal first‑quarter 2026 revenue of $2.68 billion, a 0.7% beat over the consensus estimate of $2.66 billion. Organic net sales fell 1% YoY, but the decline was largely offset by steady demand in the Meals & Beverages portfolio, which grew 2% YoY on premium soup and pasta lines.
Adjusted earnings per share rose to $0.77, beating the consensus of $0.73 by $0.04, or 5.5%. The beat was driven by disciplined cost management and pricing power in core product lines, while ingredient and labor cost inflation was partially offset by volume gains and supply‑chain efficiencies.
Gross margin contracted 150 basis points to 29.9% from 31.3% YoY, largely due to higher ingredient costs and tariff impacts on imported packaging. Adjusted EBIT fell 11% to $383 million, reflecting the combined effect of margin compression and a 1% revenue decline.
Management reaffirmed full‑year 2026 guidance, projecting adjusted EPS of $2.40–$2.55, unchanged from prior guidance. CEO Mick Beekhuizen highlighted that at‑home cooking trends continue to support Meals & Beverages, and the expanded partnership with La Regina strengthens Rao’s growth prospects.
Segment performance showed Meals & Beverages revenue growing 2% YoY, driven by premium soup and pasta lines, while Snacks revenue fell 3% due to category softness. The company’s cost‑saving initiatives and supply‑chain efficiencies are expected to mitigate future margin pressure.
Investor sentiment was mixed, reflecting the balance between the earnings beat and ongoing margin and sales declines. Analysts noted the company’s confidence in guidance but cautioned that sustained cost inflation could temper growth.
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