Campbell Soup Shares Slump on Q4 Revenue Miss, Dividend Cut

Campbell Soup Co. (NYSE: CPB) shares fell more than 8% after the company reported fourth-quarter revenue that missed estimates and cut its quarterly dividend to bolster its balance sheet. The food giant's results highlighted persistent weakness in its Snacks division, which offset stability in its Meals & Beverages segment.

Q4 Earnings Breakdown

For the fourth quarter of fiscal year 2026, Campbell's reported results that concerned investors despite meeting profit forecasts. The revenue miss was seen as a sign of underlying pressure from inflation, logistics costs, and declining sales volumes.

Key figures from the report include:

• Revenue: $2.10 billion, versus $2.15 billion expected by analysts.
• Adjusted EPS: $0.39, matching consensus estimates.
• Organic Sales: Declined by 1%.
• Adjusted Gross Margin: Fell 190 basis points to 28.6%.
• Adjusted EBIT: Dropped by 25%.

Snacks Division Drags on Performance

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The company's performance was uneven across its portfolio. The Meals & Beverages division posted 3% organic sales growth, driven by strong consumption growth of approximately 9% for its Rao's brand.

In contrast, the Snacks division, a key area for growth, saw organic sales decline by 6%. Management has implemented price increases of 4% to 5% across about 60% of its portfolio to combat inflation, but this risks pushing consumers toward private-label alternatives, particularly in the challenged snacks category.

Cost-Cutting and Capital Strategy

In response to the headwinds, Campbell's announced a significant cost-saving initiative aiming for $500 million in savings through fiscal 2030. The company has already reduced its salaried workforce by about 13% and closed two snack plants.

The company also reduced its quarterly dividend by 36% to $0.25 per share. The move is expected to free up approximately $170 million annually to be used for debt reduction, a step that improves financial flexibility but also signals to investors that cash flow is under pressure. For fiscal 2027, management guided for adjusted EBIT to decline between 7% and 12%.