Campbell expects 18% profit drop in 2026 as tariffs push costs up 4%

Campbell Soup Co. said Wednesday that new tariffs will weigh heavily on its results for fiscal 2026, with profits expected to fall short of Wall Street forecasts.

Image for representational purpose

The New Jersey-based company estimates tariffs will add about 4 per cent to its cost of goods sold next year. Executives said they expect to offset roughly 60 per cent of that hit through price hikes and internal savings, but the remainder will squeeze margins.

The added strain comes at a time when packaged food makers are already grappling with slowing demand, as consumers pull back on discretionary spending. Chief Executive Mick Beekhuizen noted that shoppers are becoming more selective and are opting for more at-home meals, adding pressure to the company’s profitability.

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Campbell now expects adjusted earnings per share to fall as much as 18 per cent in fiscal 2026, to between USD 2.40 and USD 2.55. That’s below analysts’ average estimate of USD 2.63, according to LSEG data.

Net sales are projected to be flat to down 2 per cent, a slightly better outlook than the 2.4 per cent decline Wall Street had anticipated.

Despite the earnings warning, Campbell’s shares climbed about 4 per cent in early trading after its revenue forecast came in stronger than expected. Still, tariff costs are shaping up to be one of the biggest hurdles for the maker of Goldfish crackers in the year ahead.

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