Campbell's cuts dividend, unveils $500M cost plan after profit slide

Campbell's cuts dividend, unveils $500M cost plan after profit slide

Thu, September 3, 2026 at 6:40 PM GMT+3 2 min read

• CPB -3.37%

Campbell Soup Company (NYSE:CPB) reported a sharp drop in fourth-quarter profitability and slashed its quarterly dividend by 36% to $0.25 per share, as the packaged food company moves to accelerate debt reduction and shore up its balance sheet.

Adjusted earnings per share fell to $0.39 from $0.62 a year earlier, a 37% decline. Revenue came in at $2.14 billion, down 8% year-over-year, while organic sales slipped 1%.

Adjusted EBIT dropped 25% to $242 million, and adjusted gross margin narrowed to 28.6% from 30.5%, as inflation and higher supply-chain costs weighed on results.

For fiscal 2026, Campbell's posted adjusted EPS of $2.17, down 27% year-over-year, on revenue of $9.74 billion, a 5% decline. Operating cash flow for the year totaled $1 billion.

The company also launched a new enterprise-wide cost program targeting $500 million in savings by fiscal 2030.

Looking ahead, Campbell's guided for fiscal 2027 net sales to decline 2% to 4%, with organic sales growth also expected to fall 2% to 4%. Adjusted EBIT is projected to decline 7% to 12%, and adjusted EPS is expected to come in between $1.65 and $1.80, down 17% to 24% year-over-year.

"Our performance is not where it needs to be, and we are taking decisive action to improve it," Mick Beekhuizen, Campbell's CEO, said in a statement.

Beekhuizen said the company is sharpening execution, cutting costs to fund brand investment, and strengthening its balance sheet, "including resetting our dividend."

The CEO said Campbell's enters fiscal 2027 with "leading brands including Campbell's, Rao's, Goldfish and Pepperidge Farm," a Meals & Beverages division he described as benefiting from durable at-home cooking trends, and steps underway to strengthen its Snacks unit.

"The steps we are taking are designed to improve growth, expand margins, reduce leverage, and position Campbell's for sustainable long-term value creation," he said.

Shares of Campbell's fell more than 11% on Thursday.