Campbell Soup Company (CPB) shares are soaring 5.05% in pre-market trading on Wednesday following the release of its fourth-quarter fiscal 2025 results that exceeded analysts' expectations. The company reported adjusted earnings per share of $0.62, surpassing the consensus estimate of $0.56.

The soup maker's strong performance can be attributed to several factors. First, Campbell's demonstrated resilience in its financial results, with net sales growing 1.2% to $2.32 billion, nearly meeting Wall Street's forecast of $2.33 billion. The company's adjusted gross margin improved to 30.5%, reflecting its ability to navigate a challenging cost environment.

Additionally, Campbell's announced an ambitious cost-saving initiative, raising its target from $250 million to $375 million by the end of fiscal 2028. This move is seen as a strategic effort to offset potential tariff headwinds and inflationary pressures. The company has already achieved approximately $145 million in savings under this program.

In a significant move aligning with consumer health trends, Campbell's revealed plans to eliminate all FD&C colors from its food and beverage products by the second half of fiscal year 2026. This decision comes amid a broader industry shift away from artificial additives, potentially enhancing the company's appeal to health-conscious consumers.

While Campbell's provided a mixed outlook for fiscal 2026, with adjusted EPS guidance of $2.40 to $2.55 falling below analyst expectations, investors seem to be focusing on the company's proactive measures to drive growth and efficiency. The stock's positive reaction suggests confidence in Campbell's ability to navigate upcoming challenges, including potential tariff impacts, through its cost-saving initiatives and product innovations.