Campbell’s Q1 Earnings Disappoint as Sales Decline, Stock Drops
Campbell Soup Company (CPB) reported a 3% year-over-year decline in net sales for Q1 FY2026, missing analyst expectations. The $2.7 billion revenue figure reflects softening demand across Core product lines including U.S. soups, SpaghettiOs, and V8 beverages.
EBIT fell 8% to $336 million as inflationary pressures squeezed margins. While price realization provided some offset, volume declines drove a 1% organic sales drop. The company's strategic acquisition of 49% in Rao's sauce Maker La Regina failed to prevent a 2.2% stock price slide to $29.38.
Management maintains full-year guidance despite the weak start, betting on operational improvements and premium sauce growth to reverse momentum. The earnings shortfall highlights ongoing challenges in packaged food as consumers shift spending priorities.
