By Nicholas G. Miller

Campbell's reported a decline in fourth-quarter organic sales and said it expects 2026 earnings to fall sharply as higher tariffs on steel raise the cost of soup cans.

Organic sales for the quarter fell 3%. Analysts were expecting a decline of 2.7%, according to FactSet.

The company forecast fiscal year 2026 adjusted earnings per share to decline between 18% and 12%. It said two-thirds of the decline at the midpoint of the range was attributable to tariff impact.

In June, President Trump imposed a 50% tariff on steel, which Campbell's uses in its soup cans. The Consumer Brands Association, a trade group that includes Campbell's, said the new steel tariff could increase store prices for items in steel cans by 9% to 15%.

Campbell's said Wednesday that for 2026, gross tariffs are projected at 4% of the cost of products sold and that the company has actions in place to mitigate 60% of the tariff impact. "We're increasing productivity and accelerating cost savings initiatives to help mitigate core inflation and tariff headwinds," said Chief Executive Mick Beekhuizen.

The food and beverage company swung to a fourth-quarter profit of $145 million, or 48 cents a share, from a loss of $3 million, or 1 cent a share, in the prior-year period.

Adjusted earnings were 62 cents a share, down from 63 cents the year before. Analysts were expecting 56 cents a share.

The company posted sales of $2.32 billion, up from $2.29 billion in the year-ago quarter. Wall Street had forecast $2.33 billion.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

September 03, 2025 07:40 ET (11:40 GMT)

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