Campbell Soup Company (NYSE:CPB) shares fell sharply on Wednesday after the packaged food company reported fiscal second quarter results that came in below Wall Street expectations and lowered its full-year outlook.
The Camden, New Jersey-based company posted revenue of $2.56 billion for the quarter ended February 1, down about 4.5% from a year earlier and below analyst estimates of $2.61 billion. Campbell’s reported net sales of roughly $2.6 billion, representing a 5% decline year-over-year, or a 3% decrease on an organic basis.
Adjusted earnings per share came in at $0.51, missing analyst expectations of $0.57 and marking a 31% decline from the same period last year.
Adjusted EBITDA totaled $362 million, also falling short of analyst estimates of about $407.2 million and representing a margin of roughly 14.1%.
Campbell’s said earnings before interest and taxes (EBIT) decreased to $273 million during the quarter, while adjusted EBIT declined 24% to $282 million.
The company noted that January storm-related shipment delays and associated supply chain costs had a modest impact on results. According to Campbell’s, the disruptions reduced net sales by approximately 1%, lowered adjusted EBIT by about $14 million and cut adjusted earnings per share by roughly $0.04 during the quarter.
Following the weaker results, Campbell’s lowered its full-year fiscal 2026 outlook, citing the near-term outlook for its snacks business and incremental trade investments.
The company now expects adjusted earnings per share of between $2.15 and $2.25 for the fiscal year, compared with its previous guidance range of $2.40 to $2.55. At the midpoint, the revised outlook implies adjusted EPS of about $2.20, representing a decline of roughly 11% from the prior midpoint.
Campbell’s also revised its forecast for organic net sales, now expecting a decline of 2% to 1% for the year, compared with its earlier guidance range of down 1% to up 1%. The company expects adjusted EBIT to fall between 20% and 17% for fiscal 2026, compared with its previous forecast for a decline of 13% to 9%.
Shares of the company were down 7.5% on Wednesday morning.