Campbell's Company has slashed its quarterly dividend by over a third to fund a multiyear turnaround plan after reporting declining sales and profits. Net sales fell 8% to $2.137 billion in its fiscal fourth-quarter 2026, whilst adjusted earnings per share dropped to $0.39 from $0.62 year-on-year. Full-year sales declined 5% to $9.744 billion. The company's snacks division proved particularly troublesome, with organic sales falling 6% in the quarter and segment operating earnings down 34%. Campbell's took a $117 million impairment charge on its Kettle Brand and Cape Cod trademarks. Management announced a $500 million cost savings programme through fiscal 2030 and price increases of 4% to 5% across 60% of its portfolio. The Meals & Beverages segment showed relative strength, with organic sales rising 3%, supported by cooking-focused soup products and Rao's brand growth.

Campbell's is shifting its marketing strategy to counter declining sales, with 85% of its working media budget now allocated to social media, influencers, e-commerce and AI-powered platforms. The company will concentrate spending on growth brands including Rao's, Goldfish, Pepperidge Farm and Campbell's. Total net sales fell 8% year-over-year in fiscal Q4 2026 and 5% for the full year. The snacks segment saw organic sales decline 6% year-over-year. Campbell's is implementing a $500 million cost-savings plan, including a 13% reduction in salaried workforce and closing two snack plants, to fund its marketing initiatives. Rao's pasta sauce showed strong performance with consumption up 9.4% in fiscal 2026. The company is also launching new Goldfish varieties and a back-to-school campaign emphasising the brand's family-friendly positioning.

The Campbell's Company is struggling with inflation and market volatility, particularly in its snacks division. The Zacks Rank #5 (Strong Sell) company recently missed fourth-quarter fiscal 2026 earnings estimates by a penny, posting $0.39 per share versus the consensus of $0.40. Net sales fell 8% to $2.1 billion, with adjusted gross profit margin declining 190 basis points to 28.6%, driven by cost inflation and supply chain costs including tariff impacts. Campbell's announced its first dividend cut since 2001, reducing the quarterly payout to $0.25 per share from $0.39, a 36% reduction. The company aims to accelerate debt reduction. For fiscal 2027, Campbell's guided net sales to decline 2-4% with earnings expected to fall as much as 24%, below analyst consensus estimates. Four analysts have cut their estimates following the announcement.