The Campbell’s Company lowered its annual sales and profit outlook as inflation pressures push consumers toward cheaper food alternatives.
Shares fell nearly 6% in premarket trading after the company also reported second-quarter results below expectations, reflecting weaker demand across its packaged food portfolio.
Recent price increases, introduced to offset rising raw-material costs, have discouraged many lower-income shoppers, who are increasingly switching to private-label and discount brands.
The company is also facing higher tariff-related costs, particularly for metals such as aluminum and steel, which are widely used in its canned food packaging.
Meanwhile, U.S. beef prices—a key ingredient for Campbell’s ready-to-eat soups—have reached record highs as drought conditions reduced cattle herds to their smallest level in 75 years.
Campbell’s now expects fiscal 2026 organic net sales to decline between 1% and 2%, compared with its previous forecast ranging from a 1% drop to 1% growth.
The company also cut its adjusted earnings forecast to $2.15–$2.25 per share, down from its earlier estimate of $2.40–$2.55.
For the quarter ended February 1, sales fell 5% to $2.56 billion, while adjusted EPS reached 51 cents, missing analysts’ expectations compiled by London Stock Exchange Group.
