Campbell’s (CPB) Stock Hits 23-Year Low After Missing Earnings — And S&P 500 Spot Now in Doubt

TLDR

• Campbell’s reported adjusted EPS of 51 cents for Q2, missing the 57-cent analyst estimate
• Net sales fell 4.5% year-over-year to $2.56 billion, also below expectations of $2.61 billion
• Snack sales dropped 6.2% to $914 million — below $1 billion for the first time in four years
• Full-year adjusted EPS guidance was cut to $2.15–$2.25, down from $2.40–$2.55
• The stock has fallen over 40% in the past 12 months and risks removal from the S&P 500

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Campbell’s posted another rough quarter, and Wall Street didn’t waste time reacting. The stock dropped 5.4% in premarket trading on Wednesday, putting it on track to hit its lowest price since August 2003.

The company reported adjusted earnings of 51 cents per share for its fiscal second quarter, missing the analyst consensus of 57 cents. Net sales came in at $2.56 billion, down 4.5% from a year ago and short of the $2.61 billion forecast.

Campbell Soup Company, CPB

It was the second straight year-over-year sales decline, and the first earnings miss since Q4 of 2023.

Both of Campbell’s main business units weakened. Snacks — home to Goldfish, Snyder’s pretzels, Cape Cod chips, and Pepperidge Farm — fell 6.2% to $914 million. That’s the first time snack sales have dropped below $1 billion in four years.

The meals and beverages segment, which includes the flagship soup brand, Prego, and V8, slipped 3.7% to $1.65 billion. Some growth in Rao’s sauces helped soften the blow, but not enough to offset declines elsewhere.

Net income slumped 16.2% to $145 million for the quarter.

Guidance Cut

The company lowered its full-year organic net sales outlook to a decline of 1%–2%, compared to its previous range of a 1% decline to a 1% gain. Adjusted EPS guidance was cut to $2.15–$2.25, down sharply from the prior estimate of $2.40–$2.55.

Management expects adjusted earnings to fall 12%–18% in fiscal 2026 compared with the year before, largely driven by tariff-related costs on steel and aluminum used in canned goods. Beekhuizen said the company would accelerate cost-cutting plans to “stabilize” the snacks business.

Campbell’s is targeting $375 million in cost savings by fiscal 2028.

S&P 500 Membership at Risk

Campbell’s has been a member of the S&P 500 since the index launched in 1957 — one of roughly 50 original members still on it. But that status is under pressure.

The stock has lost more than 40% over the past 12 months, compared to a 21.7% gain for the S&P 500 over the same period. Its market cap sat at around $7.5 billion heading into earnings. After the premarket drop, that figure was set to fall to roughly $6.96 billion — the second-lowest in the index.

Last Friday, four companies including Match Group and Molina Healthcare were removed from the S&P 500 after ranking among the smallest constituents.

Wall Street analysts have an average 12-month price target of $28 on CPB, about 12% above the current level near $25.

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