Key Points

Campbell Soup Company's earnings exceeded expectations, driven by rising home cooking demand. The soup and condiment manufacturer achieved growth through price increases. Campbell Soup stated that its well-positioned product portfolio enables it to benefit from consumers' cautious food spending.

Campbell Soup Company (stock code: CPB) shares rose 5% on Wednesday. The soup and condiment manufacturer delivered better-than-expected profits as more consumers purchased ingredients for home cooking.

The company reported fourth-quarter fiscal 2025 adjusted earnings per share of $0.62, compared to analysts' expectations of $0.57 according to Visible Alpha survey. Revenue increased 1% year-over-year to $2.32 billion, essentially meeting expectations.

Campbell Soup achieved performance growth by offsetting a 4% decline in volume/product mix through 2% price increases.

The company's "Meals & Beverages" segment maintained flat sales compared to the same period last year, but organic sales (excluding acquisitions, currency, and other non-operational factors) declined 3%, primarily due to reduced demand for Rao's pasta sauce and soup products in the U.S. market. The Snacks segment saw 2% sales growth, but organic sales similarly dropped 2%, attributed to "declining volumes in third-party partner brands, private label brands, and Snyder's pretzels."

Campbell Soup explained that consumers are "increasingly discerning in their food choices, focusing more on premiumization, flavor exploration, health and wellness, and home cooking." The company noted that this positions Campbell Soup to "capitalize on opportunities presented by these consumer trends."

Chief Executive Officer Mick Beekhuizen added in a prepared statement that over the past several quarters, the company has observed that "consumers remain cautious and purposeful in their spending," and they "continue to seek value in various ways, such as home cooking — a behavior that has driven growth in our Meals & Beverages business."

Despite Wednesday's stock price increase, Campbell Soup shares have declined more than 20% year-to-date.