How did Campbell’s (NASDAQ:CPB) perform in Q3 FY26?

Campbell’s reported net sales of $2.37 billion, down 4% year-over-year, while EPS rose to $0.41 from $0.22, reflecting last year’s impairment charge. Adjusted EPS fell 32% to $0.50, primarily due to a 24% decline in adjusted EBIT to $274 million.

What drove the decline in adjusted EPS and EBIT?

The decrease in adjusted EPS and EBIT was mainly driven by margin pressures, including higher supply chain costs, inflation, and tariffs, partially offset by price realization and supply chain productivity gains.

How did Campbell’s gross margin change?

Gross profit margin contracted by 190 basis points to 27.5%, reflecting inflationary and tariff-related cost pressures across the company’s operations.

Which segments were most affected in Q3 FY26?

Both the Meals & Beverages and Snacks divisions saw organic net sales declines of 4%. U.S. soup sales fell notably, while early progress was seen in the Snacks portfolio, including Goldfish and Pepperidge Farm fresh bakery products.

What cost-saving measures is Campbell’s implementing?

Campbell’s delivered $20 million in cost savings during Q3, bringing the year-to-date total to $200 million. The company targets $375 million in savings by FY28 to offset ongoing inflation and tariff impacts.

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The Campbell’s Company Q3 revenue drops 4% to $2.37 billion

Written by Heidi Cuthbert Published Jun 8, 2026, 1:06 PM

The Campbell’s Company (NASDAQ:CPB) released its financial results for the third quarter of fiscal 2026, ended May 3, 2026, reporting a 4% decline in net sales to $2.37 billion.

For the quarter, reported earnings per share (EPS) rose to $0.41, up from $0.22 in the same period last year, which had been negatively impacted by a significant impairment charge.

Adjusted EPS for the quarter was $0.50, a 32% decline from the prior year, primarily driven by lower adjusted EBIT of $274 million, a 24% decrease year-over-year.

The company’s gross profit margin contracted by 190 basis points to 27.5%.

Management attributed this margin pressure to supply chain costs and inflation, including the impact of tariffs, which were partially mitigated by net price realization and ongoing supply chain productivity improvements.

Operational performance across the core business segments remained under pressure, with both the Meals & Beverages and Snacks divisions reporting organic net sales declines of 4%.

While U.S. soup sales saw notable drops, the company noted early signs of progress in its Snacks portfolio, particularly regarding brand execution for Goldfish and Pepperidge Farm fresh bakery products.

Despite the headwinds, The Campbell’s Company reaffirmed its full-year fiscal 2026 guidance.

The company’s cost-savings program remains a primary pillar of its operational strategy; it delivered approximately $20 million in savings during the quarter, bringing the year-to-date total to $200 million.

The company is actively working toward a fiscal 2028 target of $375 million in total savings, which it intends to leverage to offset ongoing inflationary and tariff-related expenses.

Year-to-date cash flow from operations reached $839 million, supporting the company's continued commitment to shareholder returns, including $380 million in dividends paid during the first nine months of the fiscal year.

The Campbell’s Company Q3 revenue drops 4% to $2.37 billion

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