By Evie Liu and Nate Wolf

Campbell stock rose on Monday after the packaged-food company scored an earnings beat. But the gains soon faded on nagging concerns about falling sales.

Campbell's reported earnings of 50 cents a share for its fiscal third quarter, down from 73 cents a year ago. Wall Street's consensus estimate was 48 cents.

Net sales declined 4% to $2.37 billion, just below Wall Street's call for $2.38 billion. Part of the decline reflected the divestiture of brands, including Noosa yogurt.

Shares rose 3.3% in premarket trading, then dropped to a 1% loss after the stock market opened. The stock is down 22% this year and 37% over the last 12 months.

Investors are watching whether Campbell's can find its footing after a disappointing first half of the year that forced it to cut its outlook.

Despite the beat, Campbell's faced headwinds during the quarter. Consumers are looking for value because of higher inflation -- pressuring the company to hold prices steady.

Campbell's is also carrying more debt from its acquisition of Sovos Brands and faces tariff-related cost pressures.

And private-label competition is another thorn -- particularly in the snacks category.

Organic sales for Campbell's snacks division -- the brands include Goldfish, Snyder's of Hanover, and Cape Cod -- fell 4%, driven by a 6% volume decline. Organic sales for the Meals and Beverages segment were down 4%.

On the other hand, the company's leading brands -- Campbell's, Rao's, and Swanson -- are doing well from the durable at-home cooking trends, said CEO Mick Beekhuizen.

As for snacks, Beekhuizen pointed to "early signs of progress" in improving salty snacks like Goldfish and Pepperidge Farm fresh bakery products.

"Across the company, we are focused on simplifying the business, accelerating productivity and cost savings, and creating fuel to invest behind our strongest opportunities," said Beekhuizen.

In its last earnings report, Campbell's lowered its full-year guidance, expecting a 1% to 2% decline in net sales. It cut its adjusted earnings outlook to a range of $2.15 to $2.25 a share, representing a decline of more than 20% from fiscal 2025. Management gave that same outlook on Monday.

For the rest of the year, investors will scrutinize whether Campbell's can show improve its snacks operation. Even stabilizing volumes and market share could restore confidence that the business is beginning to stabilize.

Wall Street doesn't expect the stock to stage a meaningful rally any time soon. Analysts polled by FactSet have an average 12-month price target of $20 a share. The current price is about $21.50.

Write to Evie Liu at evie.liu@barrons.com

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June 08, 2026 11:44 ET (15:44 GMT)

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