Shares of Campbell Soup (CPB) plunged 6% in pre-market trading on Thursday following the release of its fiscal second-quarter results for 2026. The food company, known for products like Goldfish crackers, reported declines in net sales, earnings, and gross margin, while also announcing a significant dividend cut.

In the earnings release, President and CEO Mick Beekhuizen stated that the fourth quarter and full-year results for fiscal 2026 reflected soft revenue, compounded by inflationary pressures on gross margins. The pre-market trading price was $22.30, down $1.48, or 6.23%.

Beekhuizen explained that the dividend adjustment is part of a broader strategy aimed at accelerating debt repayment and strengthening the company's balance sheet. The board of directors has approved a 36% reduction in the quarterly dividend, bringing it to $0.25 per share.

For the fourth quarter of fiscal 2026, Campbell Soup reported an 8% decline in net sales to $2.1 billion. Gross margin contracted by 310 basis points to 27.3%, while adjusted earnings per share fell 37% to $0.39.

Rising raw material costs continue to squeeze profit margins and earnings for food manufacturers. In August, prices for agricultural commodities such as corn, wheat, and sugar surged by double-digit percentages. Additionally, Campbell Soup is implementing a large-scale cost reduction program. Starting in fiscal 2027, the company will launch a new initiative targeting cumulative cost savings of $500 million by fiscal 2030.

Year-to-date, Campbell Soup shares have declined approximately 15%.