Campbell Soup Company (NYSE:CPB) reported a decline in first-quarter fiscal 2026 earnings on Tuesday, citing continued pressure from inflation, tariffs, and shifting consumer behavior.
Adjusted earnings per share came in at $0.77, down 13% from $0.89 a year earlier, but slightly ahead of analysts’ expectations of $0.74, according to FactSet data.
Revenue for the quarter ended November 2 fell 3% to $2.68 billion, compared with $2.77 billion a year ago, slightly above the $2.65 billion analysts had forecast.
Organic net sales dropped 1%, driven by a 2% decline in consumption as retailers built inventory ahead of promotional activities. Adjusted EBIT declined 11% to $383 million, while gross margins contracted 150 basis points to 29.9%, with tariffs accounting for a 200-basis-point reduction.
While tariffs and inflation continue to challenge margins, management expects to mitigate roughly 60% of these impacts through strong inventory management and cost-saving initiatives.
For the full fiscal year 2026, Campbell reaffirmed its guidance, expecting adjusted EPS in the range of $2.40 to $2.55 and organic sales growth between -1% and +1%, factoring in tariff and base business pressures.
Shares of Campbell Soup fell 3.8% in early trading following the release.