Campbell's (CPB) will continue to face a "challenging" external environment with customer demand and cost headwinds in fiscal 2026, RBC Capital Markets said Thursday.
The company is scheduled to report its fiscal Q4 results on Sept. 3.
For fiscal Q4, RBC expects the company to post non-GAAP EPS of $0.56, in line with the estimate polled by FactSet. The company posted $0.63 a year earlier.
The brokerage said it is "cautious" ahead of the company's earnings, as the snacking sector continues to face challenges. It said that competition in the sector remains high, and consumer spending on discretionary products is under pressure.
"With no major improvement in trade policy intra-quarter, we would not be surprised to see EPS come in below the low end of existing guidance," RBC said. The company has a fiscal 2025 adjusted earnings outlook of $2.95 to $3.05 per share.
The brokerage has a $35 price target on the stock and a sector perform rating.