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Investing.com -- Campbell’s Company shares gained 2.2% in premarket trading after the food giant reported better-than-expected fourth quarter earnings, despite facing headwinds from tariffs and inflation.
The company reported adjusted earnings per share of $0.62 for the fourth quarter, exceeding analyst estimates of $0.56. Revenue came in at $2.32 billion, slightly below the consensus estimate of $2.33 billion. The quarter benefited from an additional week, which contributed approximately 7% to net sales and 10% to adjusted EPS.
Organic net sales decreased 3% in the quarter, primarily due to lower volume across both the Meals & Beverages and Snacks segments. The company’s Meals & Beverages segment saw continued strong performance from its leadership brands, while the Snacks business showed modest sequential improvement despite category softness.
"Our fiscal 2025 results were slightly ahead of our expectations, driven by our team’s focus on execution in a dynamic operating environment," said CEO Mick Beekhuizen. "Meals & Beverages benefited from the continued strong in-market performance of our leadership brands, outpacing category growth as consumers continued to cook at home."
Looking ahead, Campbell’s provided fiscal 2026 guidance below analyst expectations, projecting adjusted EPS of $2.40 to $2.55, compared to the consensus of $2.61. The company cited substantial input cost pressures, primarily driven by tariffs, as a key factor in the reduced outlook.
The company also announced it has raised its cost savings target from $250 million to $375 million by the end of fiscal 2028, which it intends to use to help offset tariff headwinds.
For fiscal 2026, Campbell’s expects organic net sales growth between -1% and 1%, with adjusted EBIT declining between 9% and 13%. The company estimates that approximately two-thirds of the projected decline in adjusted EPS will be attributable to tariff impacts.