Campbell’s Cuts Full-Year EPS Guidance to $2.15-2.25 After Q2 Revenue Miss
Campbell’s reported Q2 revenue of $2.56 billion, down 4.5% y/y and below expectations of $2.61 billion, with adjusted EPS of $0.51 missing estimates of $0.57. It lowered fiscal 2026 adjusted EPS guidance to $2.15-2.25 from $2.40-2.55, forecasts organic net sales down 2%-1% and expects adjusted EBIT to fall 17%-20%.
1. Q2 Results Show Revenue and EPS Shortfalls
Campbell Soup posted Q2 revenue of $2.56 billion, down 4.5% year-over-year and missing the $2.61 billion analysts had projected. Adjusted earnings per share declined 31% to $0.51, trailing the $0.57 consensus, while adjusted EBITDA fell to $362 million, representing a 14.1% margin.
2. Storm-Related Delays Trim Sales and Profit
The company cited January storm-related shipment delays that reduced net sales by about 1%, lowered adjusted EBIT by $14 million and shaved $0.04 from adjusted EPS. These disruptions added supply chain costs but were described as a modest contributor to the overall shortfall.
3. Fiscal 2026 Guidance Revised Downward
Campbell Soup cut its full-year adjusted EPS outlook to $2.15-2.25 from $2.40-2.55 and now expects organic net sales to decline 2%-1%. It also forecast adjusted EBIT to fall 17%-20%, citing near-term headwinds in its snacks segment and incremental trade investments.
4. Shares React to Pessimistic Outlook
Shares fell 7.5% on the day following the earnings miss and guidance reduction, marking one of the largest single-day declines for the stock this fiscal year as investors reassessed growth prospects.