Campbell's Cuts Annual Forecasts on Weak Consumer Demand
Campbell's reduced its 2026 outlook as shoppers shift to cheaper brands. The company now expects organic sales to fall by up to 2% amid economic pressure.
Campbell Soup Company has lowered its annual sales and profit projections for fiscal 2026, as the packaged food manufacturer navigates a shift in consumer behavior driven by macroeconomic pressures. The company expects demand to be weighed down by budget-conscious shoppers who are increasingly opting for cheaper alternatives and store-brand products.
Previous price increases implemented by the company to protect margins against rising commodity costs have contributed to a decline in volume. Lower-income consumers, in particular, have tightened their spending in response to these hikes. As a result, Campbell's now forecasts organic net sales for fiscal 2026 to decrease between 1% and 2%, a downward revision from its previous guidance of a 1% decline to a 1% gain.
Profitability expectations have also been adjusted. The company now anticipates adjusted earnings per share for the fiscal year to fall between $2.15 and $2.25. This is significantly lower than the earlier projection of $2.40 to $2.55 per share, reflecting the ongoing impact of macroeconomic uncertainty on the sector.
