CAMPBELL'S Co recently released its 10-Q report. The Campbell's Company, which was formerly Campbell Soup Company until its name change in November 2024, makes and markets food and beverage products in the United States and abroad. Its business is split into Meals & Beverages and Snacks, with products sold through grocery chains, mass merchants, club stores, convenience and dollar stores, e-commerce, foodservice, and other channels.
In Item 2, management said the company operates in a highly competitive market and is dealing with commodity cost volatility, supply-chain pressure, tariffs, shifting trade policy, and changing consumer spending patterns. It also said elevated inflationary pressure persisted through the third quarter and is expected to continue through the rest of 2026, with the company relying on productivity gains, cost savings, and tariff mitigation to offset some of the impact. Management noted that consumer behavior remains uneven and that volumes may stay under pressure through 2026.
The company completed two divestitures before the quarter: Pop Secret popcorn on Aug. 26, 2024, and noosa yoghurt on Feb. 24, 2025. It also said that beginning in 2026, its Latin America snacking and meals-and-beverages retail business is being managed under Meals & Beverages rather than Snacks, with prior segment results restated for comparability.
On Dec. 8, 2025, Campbell’s entered agreements to acquire 49% of La Regina di San Marzano di Antonio Romano S.p.A. and La Regina Atlantica, LLC for $286 million in two tranches. The company said La Regina produces all of Rao’s tomato-based pasta sauces, and after the third quarter it completed the 49% acquisition on May 4, 2026 for $146 million in cash.
For the quarter, net sales fell 4% to $2.366 billion from $2.475 billion a year earlier. Meals & Beverages sales declined 4% to $1.426 billion, while Snacks sales also fell 4% to $940 million. The company said the drop was driven mainly by unfavorable volume/mix and the noosa divestiture, partly offset by favorable net price realization.
Gross profit margin narrowed to 27.5% from 29.4% in the prior-year quarter. Campbell’s said the decline reflected the gross impact of tariffs plus cost inflation and other supply-chain costs, partly offset by supply-chain productivity improvements and favorable net price realization.
Net earnings attributable to Campbell’s rose to $124 million, or $0.41 per share, from $66 million, or $0.22 per share, a year earlier. The company said the current quarter included $0.09 per share of items affecting comparability, while the prior-year quarter included $0.51 per share. After adjusting for those items, earnings fell, mainly because gross profit was lower.
The company estimated the net tariff impact at about $0.07 per share in the quarter and about $0.17 per share year to date. For the nine months ended May 3, 2026, net earnings attributable to Campbell’s were $463 million, or $1.55 per share, versus $457 million, or $1.52 per share a year earlier.
Cost savings and optimization charges were a major factor in the quarter. Campbell’s recorded $69 million of aggregate impact from those initiatives in the third quarter, including $9 million of restructuring charges and $38 million of implementation and related costs. Year to date, the total impact from those initiatives reached $127 million, compared with $91 million in the prior-year period.
The company also recorded a $30 million pension actuarial and curtailment gain in the quarter, $6 million of commodity hedge gains, and $2 million of acquisition-related costs tied to La Regina. In the prior-year quarter, it had a $150 million impairment charge on the Snyder’s of Hanover trademark, along with smaller impairment charges on other snack trademarks and a $25 million loss on the sale of Pop Secret. Today the company's shares have moved -1.2% to a price of $21.42. If you want to know more, read the company's complete 10-Q report here.
