MW Campbell's tops earnings forecast as cost-conscious consumers continue to cook at home

By Tomi Kilgore

The full-year outlook was mixed, as profit guidance was below analyst expectations but the sales view was a little better

Campbell's stock is rallying as the consumer trend of cooking at home has continued.

Shares of Campbell's Co. rallied in early Wednesday trading after the soups, meals and snacks company beat its fourth-quarter profit expectations as a "deliberate" consumer continued to focus on cooking at home.

The company said, however, that it expects earnings to decline over the next fiscal year as it faces "substantial" cost pressures from tariffs imposed by the Trump administration on imported goods, even as it increases efforts to cut costs.

The stock $(CPB)$ climbed 2.1% in premarket trading. Through Tuesday, the stock had bounced 3.5% since closing at a 14-year low of $30.41 on July 15.

The company booked net income of $145 million for the quarter ended Aug. 3, after a loss of $3 million in the comparable period last year.

On an adjusted basis, which excludes nonrecurring items, such as pension losses in the latest quarter and asset-impairment charges a year ago, earnings per share slipped to 62 cents from 63 cents but beat the average analyst estimate compiled by FactSet of 56 cents. That marked the eighth straight quarter with a bottom-line beat.

Sales grew 1.2% to $2.32 billion, just shy of the FactSet consensus of $2.33 billion, as a meals and beverages sales inched up 0.2% to $1.2 billion and snacks sales were up 2.4% to $1.12 billion.

Volume and sales mix declined 4%, while prices increased 2%.

"Consumers continue to be increasingly deliberate in their food choices with a focus on premiumization, flavor exploration, health and wellness and cooking at home," the company said in a statement.

For fiscal 2026, the company expects adjusted earnings per share of $2.40 to $2.55, below the current FactSet consensus of $2.57. Sales for the year are expected to be down 2% to flat, while the current FactSet revenue consensus of $9.99 billion implies a 2.6% sales decline.

Campbell's said it has raised its target for cost cuts by 50%, to $375 million by the end of fiscal 2028 from the previous target provided in September 2024 of $250 million. As of the end of the latest quarter, the company said it has achieved about $145 million of savings under the cost-cut plan.

"The company intends to use these savings as one of several levers to help offset tariff headwinds," Campbell's said.

The stock has dropped 24.9% in 2025 through Tuesday, while the S&P 500 index SPX has gained 9.1%.

-Tomi Kilgore

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September 03, 2025 08:58 ET (12:58 GMT)

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