The Campbell's Company
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsCampbell's Company is a branded food and beverage manufacturer operating through Meals & Beverages and Snacks segments, with a portfolio that includes Campbell's, Rao's, Goldfish, and Pepperidge Farm.
What they do
Campbell's manufactures and markets branded food and beverage products across two reportable segments: Meals & Beverages and Snacks. The company has completed several divestitures, including Pop Secret (August 2024) and noosa yoghurt (February 2025), and acquired Sovos Brands in March 2024. In 2026, Latin America retail business was moved from Snacks to Meals & Beverages.
Revenue drivers
- Meals & Beverages — Includes Campbell's, Rao's, Swanson, and other soup, sauce, and beverage brands; benefits from durable at-home cooking trends.
- Snacks — Includes Goldfish, Pepperidge Farm fresh bakery, and salty snacks; facing volume softness but showing early signs of progress in Goldfish core households.
- Rao's — Premium pasta sauce brand; company acquired 49% of La Regina (its producer) for $286 million, with $146 million paid in May 2026, to secure supply and growth.
Recent performance
In Q3 fiscal 2026 (ended May 3, 2026), net sales decreased 4% to $2.366 billion, with organic net sales down 4% on unfavorable volume/mix, partially offset by positive price realization. GAAP EBIT increased 48% to $239 million, but adjusted EBIT fell 24% to $274 million; GAAP EPS rose to $0.41 from $0.22, while adjusted EPS dropped 32% to $0.50, hurt by tariffs and cost inflation. Gross margin declined 190 basis points to 27.5%; adjusted gross margin fell 240 basis points to 27.7%. Fiscal year-to-date cash flow from operations was $839 million.
Strategy
Campbell's strategy is built on four pillars: Top Team, Best Portfolio, Winning Execution, and Lasting Impact. The company is simplifying the business, accelerating productivity and cost savings, and investing behind strongest opportunities. Management increased cost savings target to approximately $375 million in annual ongoing savings by fiscal 2028. Executing portfolio reshaping through divestitures and the La Regina acquisition.
Risks
- Tariff and trade policy exposure — Tariffs on ingredients, packaging (like tinplate steel), and imports from Canada, Mexico, EU, and UK are increasing costs and pressuring margins.
- Input cost inflation — Elevated commodity and supply chain costs continue, with expectation of persistent inflation through 2026, impacting gross margin.
- Consumer demand shifts — Consumers may trade down to private label or lower-price products during economic uncertainty, pressuring volume and market share.
- Execution and integration risk — Cost savings initiatives, supply chain optimization, and the La Regina acquisition carry execution risk, including potential disruptions.
Outlook
Management expects elevated inflationary pressures and tariff impacts to persist through the remainder of fiscal 2026, with volumes improving over time but potentially still pressured. They plan to offset costs through productivity, cost savings, tariff mitigation, and surgical pricing actions. The company reaffirmed full-year fiscal 2026 guidance.