Campbell’s Q3 EPS Tops Estimates as Revenue Falls 4% to $2.4B
CPB•Campbell’s Q3 adjusted EPS rose to $0.50 versus $0.49 estimates while revenue declined 4% year-on-year to $2.4 billion on a 4% drop in organic net sales. Adjusted EBIT fell 24% to $274 million with gross margin down 240 basis points to 27.7%, and full-year organic sales and EPS guidance was reaffirmed.
1. Q3 Financial Results
Campbell’s reported adjusted EPS of $0.50, beating the $0.49 consensus, on revenue of $2.4 billion, down 4% year-on-year. Organic net sales declined 4% driven by volume and mix shifts despite positive net price realization.
2. Margin Contraction and Cost Measures
Adjusted EBIT dropped 24% to $274 million, reflecting inflation and supply chain cost pressures, including tariff impacts. Gross profit margin contracted by 240 basis points to 27.7%, while $20 million in quarterly cost savings added to productivity improvements.
3. Full-Year Guidance and Outlook
The company maintained its fiscal 2026 outlook, forecasting organic net sales down 2% to 1% and adjusted EPS of $2.15 to $2.25. Year-to-date operating cash flow reached $839 million, supporting progress toward a $375 million cost savings target by fiscal 2028.
