Campbell’s stock heads toward a 23-year low after weak earnings and declining soup and snack sales. The company cut its full-year outlook as demand for major brands continues to soften.
WEBDESK – Act Global Media
Shares of Campbell’s Co. plunged Wednesday, putting the iconic American food company on track for its lowest stock price in more than two decades after disappointing earnings revealed continued declines in soup and snack sales.
The company, known for brands such as Goldfish, Snyder’s pretzels, Cape Cod chips, Pepperidge Farm, and V8, reported weaker-than-expected quarterly results and lowered its full-year outlook, raising concerns about slowing demand for its core products.
Campbell’s stock fell about 5.4% in premarket trading, positioning it among the worst performers in the S&P 500. If the decline holds, the stock would open at its lowest level since August 2003, pushing the company’s market value to roughly $6.96 billion — one of the smallest among S&P 500 companies.
The company reported net sales of $2.56 billion for the quarter ending Feb. 1, a 4.5% decline from a year earlier and below analysts’ expectations of $2.61 billion. It marked the second consecutive year-over-year quarterly sales drop.
Snack sales were particularly weak, falling 6.2% to $914 million, the first time in four years the category dipped below $1 billion. Meanwhile, sales in Campbell’s meals and beverages segment — which includes its flagship soups, Prego pasta sauces, and V8 drinks — declined 3.7% to $1.65 billion.
Net income dropped 16.2% to $145 million, while adjusted earnings per share came in at 51 cents, missing analysts’ estimates of 57 cents. It was the company’s first earnings miss since the fourth quarter of fiscal 2023.
CEO Mick Beekhuizen said the company would accelerate cost-cutting measures as it seeks to stabilize the struggling snacks division.
“Given our first-half results and the current operating environment, we are lowering our full-year outlook to reflect a more cautious view for the remainder of the year,” Beekhuizen said.
Campbell’s also trimmed its fiscal 2026 guidance, forecasting organic net sales to decline between 1% and 2%, compared with its earlier projection of a range from a 1% drop to a 1% increase. Adjusted earnings per share are now expected to be $2.15 to $2.25, down from the previous forecast of $2.40 to $2.55.
The disappointing results come after Campbell’s dropped the word “Soup” from its corporate name in 2024 in an effort to emphasize its broader snack portfolio.
Over the past 12 months, Campbell’s stock has fallen 38.2%, sharply underperforming the broader market. In comparison, the Consumer Staples Select Sector SPDR ETF has gained 5.2%, while the S&P 500 has risen 21.7% during the same period.
The company now faces increasing pressure from shifting consumer habits, rising costs, and stronger competition in both the snack and packaged-food sectors.
