It has been about a month since the last earnings report for Campbell's (CPB Quick QuoteCPB - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Campbell due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for The Campbell's Company before we dive into how investors and analysts have reacted as of late.

Campbell's Q2 Earnings & Revenues Miss Estimates, Sales Down 5% Y/Y

The Campbell's Company reported second-quarter fiscal 2026 results, with the top and bottom lines missing the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.

CPB’s Quarterly Performance: Key Metrics and Insights

Adjusted earnings per share (EPS) were 51 cents, down 31% year over year, due to lower adjusted earnings before interest and taxes (“EBIT”). The bottom line also missed the Zacks Consensus Estimate of 57 cents. 

Net sales of $2,564 million decreased 5% year over year, and missed the Zacks Consensus Estimate of $2,606 million. Organic net sales, which exclude divestitures, decreased 3% to $2.6 billion, due to lower volume and unfavorable product mix, while net price realization remained neutral.

The company’s adjusted gross profit fell to $710 million from $815 million. The adjusted gross profit margin declined 270 basis points (bps) to 27.7%. The margin decrease was primarily due to cost inflation, supply-chain expenses, tariff impacts and unfavorable volume/mix, partly offset by cost-saving measures, supply-chain productivity gains and modest price realization.

Adjusted marketing and selling expenses decreased 3% to $248 million, primarily due to reduced selling expenses and ongoing cost-reduction initiatives.

Adjusted administrative expenses dipped 3% to $152 million, reflecting cost-saving efforts, partially offset by higher benefit-related costs and inflationary pressures.

The adjusted EBIT dropped 24% to $282 million, mainly owing to reduced adjusted gross profit, somewhat offset by lower adjusted administrative expenses and adjusted marketing and selling expenses.

Decoding CPB’s Segmental Performance

Meals & Beverages: Net sales decreased 4% to $1,650 million for the quarter. Excluding the noosa divestiture, organic net sales declined 2%, caused by lower sales in U.S. soup, Prego pasta sauces, foodservice and V8 beverages, partially offset by growth in Rao’s. Overall sales reflected a 2% decline in volume/mix, partially offset by 1% favorable price realization. Sales were also affected by an estimated 1% headwind from January storm-related shipment delays. 

Snacks: Net sales decreased 6% to $914 million in the quarter. Organic net sales also declined 6%. The decline was caused largely by weaker demand for chips and pretzels, as well as supply constraints in fresh bakery products and third-party partner brands, including contract manufacturing. Volume and mix reduced sales by 6%, while price realization remained neutral.

CPB’s Other Financial Metrics

As of the end of the reported quarter, Campbell's had cash and cash equivalents of $561 million and a total debt of $7,075 million. 

Cash flow from operations for the six months ended Feb. 1, 2026, was $740 million. Capital expenditures were $227 million in the said period. CPB paid $237 million in cash dividends and repurchased nearly $26 million in shares during the period.
 
As of Feb. 1, 2026, the company had $172 million remaining under its September 2024 anti-dilutive share repurchase program, in addition to $301 million remaining under the September 2021 strategic share repurchase program.

In the fiscal second quarter, Campbell’s delivered $20 million in cost savings, bringing total savings to $180 million toward its fiscal 2028 target of $375 million.

CPB’s Fiscal 2026 Guidance

Campbell’s is lowering its full-year fiscal 2026 guidance. Organic net sales are now expected to range from a decline of 1% to 2% year over year compared with the prior outlook of 1% decline to 1% rise. Adjusted EBIT is projected to decrease 17% to 20%, compared with the previous expectation of a 9% to 13% decline. 

Adjusted EPS is now expected to fall 23% to 26%, implying a range of approximately $2.15 to $2.25, compared with the prior forecast of $2.40 to $2.55.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -14.13% due to these changes.

VGM Scores

Currently, Campbell has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Campbell has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Campbell is part of the Zacks Food - Miscellaneous industry. Over the past month, United Natural Foods (UNFI Quick QuoteUNFI - Free Report) , a stock from the same industry, has gained 17.6%. The company reported its results for the quarter ended January 2026 more than a month ago.

United Natural reported revenues of $7.95 billion in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.62 for the same period compares with $0.22 a year ago.

For the current quarter, United Natural is expected to post earnings of $0.81 per share, indicating a change of +84.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +23.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Natural. Also, the stock has a VGM Score of A.