Campbell’s reports 5% loss in net sales for Q2FY2026 financial results amid market challenges

USA – The Campbell’s Company, the iconic food giant behind soups, snacks, and beverages, disclosed its fiscal second quarter 2026 results on March 11, 2026, revealing softer-than-expected performance that prompted a revised full-year outlook.

Net sales fell 5% to US$2.56 billion, missing the analyst consensus of US$2.61 billion, with organic sales down 3% due to volume pressures and weather disruptions.

Profitability took a hit as Earnings Before Interest and Taxes (EBIT) dropped to US$273 million, while adjusted EBIT declined 24% year-over-year to US$282 million, pressured by supply chain costs and inflation.

Net income was US$145 million, or US$0.48 per share; adjusted EPS was US$0.51, below the anticipated US$0.57.

Gross profit was US$717 million, with margins contracting to 28.0% from 30.5% last year, reflecting higher input costs not fully offset by pricing or savings.

Segment Operating Review

In Q2 fiscal 2026, Meals & Beverages net sales fell 4% to US$1.650 billion, while Snacks sales declined 6% to US$914 million.

Segment operating earnings decreased, with Meals & Beverages down 15% to US$252 million and Snacks down 39% to US$67 million.

Operating earnings of the snacks segment decreased 39% primarily due to lower gross profit.

Gross profit margin decreased mainly due to cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by cost savings and supply chain productivity improvements.

The Snacks segment consists of Pepperidge Farm cookies, crackers, fresh bakery, and frozen products, including Goldfish crackers, Lance sandwich crackers, Cape Cod potato chips, Kettle Brand potato chips, and other snacking products, sold in retail in the US.

The segment also included the results of the Pop Secret popcorn business, which was sold on August 26, 2024.

Through the fourth quarter of fiscal 2025, the snacking, and meals and beverages retail business in Latin America was managed under the Snacks segment.

Beginning in fiscal 2026, the business is managed under the Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

For the full fiscal year 2026, the company lowered its outlook, now expecting organic net sales to decline 2% to 1%, adjusted EBIT to decline 20% to 17%, and adjusted EPS to decline 26% to 23%, to a range of US$2.15 to US$2.25, compared with fiscal 2025 adjusted EPS of US$2.91.

This financial report comes after the appointment of Cassandra Green as Chief Supply Chain Officer, effective immediately. 

Green will report to President and Chief Executive Officer Mick Beekhuizen and will join the company’s Operating Committee.

In this elevated role, Green will continue to lead Campbell’s end-to-end supply chain, including customer logistics and planning, procurement, operational excellence, manufacturing and supply chain category leadership. She will also assume responsibility for food safety and quality.

Green joined the company in 2010 as a plant manager in Australia and has held a variety of leadership roles across the organization.

Her experience includes leading the company’s former fresh supply chain, overseeing manufacturing for the Meals & Beverages division and guiding the enterprise co-manufacturing strategy.

Most recently, as Head of Supply Chain, Green has driven greater focus on total delivered costs and helped advance innovative approaches to mitigate inflationary pressures.

Additionally, The Campbell’s Company has appointed Joshua Levine as Chief Investor Relations Officer, effective March 18, 2026. Levine will report to Chief Financial Officer Todd Cunfer.

Levine will lead the company’s Investor Relations function, overseeing engagement with the investment community and supporting transparent, consistent communication with shareholders.

He succeeds Rebecca Gardy, who announced her retirement from the company after six years of leadership in investor relations.

Levine brings extensive Investor Relations and financial experience and perspective. Most recently he served as Vice President, Investor Relations and Treasury at Simply Good Foods, leading the company’s investor relations and capital market functions.

Prior to that, he was Vice President of Investor Relations at Sovos Brands until it was acquired by Campbell’s in 2024.

Earlier in his career, Levine worked as a buyside investment analyst covering the consumer industry at several hedge funds and, prior to that, covered the food industry on the equity research team at J.P. Morgan.

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