Campbell’s Q2 Net Sales Fall 5% to $2.6B, Lowers FY26 EPS Guidance
Campbell’s second-quarter net sales declined 5% to $2.6 billion, with organic sales down 3% year-over-year and EBIT falling 17% to $273 million. The company delivered $20 million in cost savings and reported Rao’s brand exceeded $1 billion in trailing twelve-month sales but cut full-year adjusted EPS guidance to $2.15–$2.25 from $2.40–$2.55.
1. Second-Quarter Financial Results
For the quarter ended February 1, Campbell’s reported net sales of $2.6 billion, down 5% from the prior year; organic sales fell 3%. GAAP EBIT declined 17% to $273 million, and adjusted EPS dropped 31% to $0.51 on lower volumes and margin pressure.
2. Segment Performance and Cost Initiatives
The Meals & Beverages portfolio delivered in-market growth led by Rao’s brand surpassing $1 billion in trailing sales, while the Snacks segment underperformed due to weaker demand and storm-related shipment disruptions. The company achieved $20 million in second-quarter cost savings, raising total to $180 million toward a $375 million fiscal 2028 target.
3. Updated Full-Year Guidance
Campbell’s lowered its full-year fiscal 2026 outlook, cutting adjusted EPS guidance to $2.15–$2.25 from $2.40–$2.55 and forecasting organic net sales down 2% to 1%. The revision reflects cautious expectations for the Snacks business and planned trade investments to support brand growth.