Campbell's Reports Second Quarter Fiscal 2026 Results

Core Insights - Campbell's Company reported a decrease in net sales and earnings for the second quarter of fiscal 2026, attributing the decline to shipment delays and weaker performance in the Snacks segment [1][2][3] - The company is lowering its full-year fiscal 2026 guidance due to a cautious outlook for the Snacks business and plans to implement cost-saving initiatives to mitigate challenges [2][3] Financial Performance - Net sales decreased by 5% to $2.6 billion, with organic net sales down 3% [1][2] - Adjusted EBIT fell 24% to $282 million, while reported EBIT decreased 17% to $273 million [1][2] - Diluted EPS decreased to $0.48, a 17% decline, with adjusted EPS down 31% to $0.51 [1][2] Segment Analysis - Meals & Beverages segment net sales decreased by 4%, primarily due to declines in U.S. soup and Prego pasta sauces [2][3] - Snacks segment net sales decreased by 6%, driven by declines in chips and pretzels, along with supply constraints [2][3] - Operating earnings for Meals & Beverages fell 15%, while Snacks saw a 39% decrease in operating earnings [2][3] Cost Management - The company achieved approximately $20 million in cost savings during the quarter, totaling $180 million towards its fiscal 2028 target of $375 million [2][3] - Marketing and selling expenses decreased by 2% to $252 million, while administrative expenses also saw a 3% reduction [1][2] Cash Flow and Shareholder Returns - Cash flow from operations for the first half of fiscal 2026 was $740 million, slightly up from $737 million in the prior year [1][2] - The company returned $263 million to shareholders, including $237 million in dividends [1][2] Full-Year Guidance - The updated fiscal 2026 guidance reflects a more cautious outlook, with organic net sales expected to decline by 2% to 1%, adjusted EBIT projected to decrease by 20% to 17%, and adjusted EPS anticipated to fall by 26% to 23% [2][3]