The Campbell's Company (NASDAQ: CPB) reported fourth-quarter fiscal 2026 net sales of $2.1 billion on September 3, 2026, a decrease of 8% from the prior-year period. Adjusted earnings per share fell 37% to $0.39. The company also cut its quarterly dividend 36%, to $0.25 per share, to help accelerate debt reduction.
Organic net sales, which exclude currency, acquisitions, divestitures and the extra week in fiscal 2025, declined 1% for the quarter. The Meals & Beverages division, which includes Campbell's soup and Rao's sauces, posted organic net sales growth of 3%. The Snacks division, which includes Goldfish and Pepperidge Farm, saw organic net sales decline 6% on weaker consumption and lower contract sales.
Adjusted EBIT decreased 25% to $242 million, driven primarily by lower adjusted gross profit. Adjusted gross margin fell 190 basis points to 28.6%, as cost inflation of nearly 6% and other supply chain costs outweighed productivity gains. The company said the extra week in the prior-year period accounted for an estimated 8-point impact on adjusted EBIT.
On a GAAP basis, earnings before interest and taxes fell to $4 million from $269 million, and the company reported a diluted loss of $0.23 per share, compared with earnings of $0.48 per share a year earlier. The decline included a combined $117 million impairment on the Cape Cod and Kettle Brand trademarks within the Snacks segment.
#Campbell's Cuts Quarterly Dividend 36% to Speed Debt Reduction
Campbell's board of directors approved a quarterly dividend of $0.25 per share, or $1.00 on an annualized basis, down from $0.39 per share, or $1.56 annualized. The new dividend is payable November 2, 2026, to shareholders of record as of October 1, 2026. The company said the change is expected to reduce annual cash outflows by approximately $170 million.
Net leverage rose to 4.3 times trailing adjusted EBITDA at quarter end, from 3.6 times a year earlier, reflecting pressured earnings and the company's investment in La Regina. Campbell's said the dividend reduction and improved cash conversion are intended to support a return toward a net leverage ratio of approximately 3.0 times.
#Campbell's Launches $500 Million Cost-Savings Program Targeting Fiscal 2030
Campbell's said it is launching a new enterprise-wide cost savings program targeting $500 million in reductions by fiscal 2030, separate from its ongoing annual productivity initiatives. The program includes remaining initiatives from a prior $375 million savings effort, of which the company had achieved approximately $225 million, along with an overhead savings initiative announced in the third quarter of fiscal 2026 and a new plan to change how the company manages and deploys its direct and indirect spending.
Actions already underway include the closure of two Snacks manufacturing plants, in Hyannis, Massachusetts, and Jeffersonville, Indiana, along with workforce reductions. Through a voluntary early-retirement program and involuntary reductions, the company reduced its salaried workforce by approximately 13%, according to the earnings release.
"Our performance is not where it needs to be, and we are taking decisive action to improve it," Mick Beekhuizen, President and Chief Executive Officer, The Campbell's Company, said in the earnings release. Beekhuizen said the company is increasing its focus on the consumer and strengthening its balance sheet.
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#Campbell's Guides Fiscal 2027 Adjusted EPS to $1.65 to $1.80
For fiscal 2027, Campbell's guided to net sales declining 2% to 4%, including a modest contribution from the recently acquired La Regina business, and organic net sales declining 2% to 4%. The company guided adjusted EBIT to decline 7% to 12% and adjusted EPS to $1.65 to $1.80 per share, representing declines of 17% to 24% from fiscal 2026.
The guidance assumes combined raw material and packaging inflation of 5% to 6% and double-digit logistics inflation, driven by higher diesel costs and reduced driver availability, the company said. Campbell's said it expects productivity above 4% of cost of products sold and more than $100 million of savings from its new cost program to help offset those pressures.
The guidance reflects the company's current understanding of government policy and tariffs and does not assume any impact from new tariffs or changes to existing tariff rates, Campbell's said. The company cautioned that actual results could differ due to supply chain cost inflation, competitive pressure in the Snacks category, and the pace of execution on its cost savings and debt reduction plans.
Management said it expects fiscal 2027 profitability to be pressured in the first half of the year before productivity, cost savings and pricing actions build through the year to support margin recovery. Key risks to that outlook include continued inflation, tariff exposure and the pace of the Snacks division's turnaround, the company said.