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Campbell Soup (CPB) is trading higher after reporting its Q4 (Jul) results this morning. EPS topped consensus estimates, extending its streak, while revenue was roughly in line. Revenue grew 1.2% yr/yr to $2.32 bln, a slower pace than recent quarters. For FY26, the company guided EPS to $2.40-2.55 and revenue growth of down 2% to flat. Organic sales are expected to range from -1% to +1%, reflecting continued momentum in Meals & Beverages and an expected stabilization in Snacks in 2H26.

• Its Meals & Beverages segment reported net sales of flat yr/yr at $1.20 bln, while organic sales fell 3% on a 4% volume/mix decline. Still, consumption rose 1% in the quarter as at-home cooking trends stayed strong, helping offset the timing reversal of shipments from Q3.
• Its Snacks segment continues to lag, though it showed sequential improvement. Net sales grew 2% yr/yr to $1.12 bln, but organic sales fell 2% as a 5% volume/mix decline outweighed a 2% price lift. Weaknesses in Snyder's pretzels and partner brands remained a drag, though Goldfish and Cape Cod were bright spots, driving share gains and healthier consumption.
• Tariffs proved to be a headwind toward its profitability. Adjusted EPS of $0.62 included a $0.06 lift from an extra week, but tariffs and divestitures both carried a $0.02 negative impact. EBIT margin slipped 50 bps, with tariffs driving 30 bps of the hit. Gross margin fell 90 bps to 30.5% on cost inflation and supply chain costs.
• In terms of the guidance and anticipated costs, tariffs are expected to represent ~4% of COGS, with section 232 steel/aluminum driving ~60% of the hit. FY26 adjusted EBIT is forecast to fall 13-9%, while adjusted EPS is expected to be down 18-12%. About two-thirds of the decline in EPS is tariff-related, with the rest tied to base business performance.

Briefing.com Analyst Insight

Campbell Soup continues to benefit from steady at-home demand in Meals & Beverages, but mounting tariff costs cloud the FY26 outlook. With margins under pressure and EPS set for a double-digit drop, near-term challenges remain. Still, sequential improvement in Snacks and expected stabilization in 2H26 are encouraging. And with the stock trading near lows, we think the earnings beat, momentum in Meals & Beverages, and signs of progress in Snacks were enough to get shares moving.