Campbell’s forecasts muted fiscal 2026 on tariff pressures, slow demand

A file photo shows a variety of Campbell's soups in a grocery cart at a store in Phoenix. (AP Photo/Ross D. Franklin, File)

Campbell’s Co forecast annual sales profit below Wall Street estimates on Wednesday, pressured by weak demand for snacks and ready-to-eat meals as well as higher costs from tariffs.

The maker of Goldfish crackers and Campbell’s soups said rising raw material costs, U.S. import tariffs and retaliatory duties from the European Union and Canada will weigh on profitability.

The company has tried to reduce the impact through inventory management, alternative sourcing, and selective price increases.

Consumers have pulled back on snacking, seeking better deals and more nutritious options after years of price increases. Mainstream brands at packaged food rivals Kraft Heinz and Conagra have also seen softer demand in recent quarters.

Campbell’s said shoppers remain “deliberate in their food choices.”

For fiscal 2026, under current tariff assumptions, Campbell expects organic net sales to range from down one per cent to up one per cent, compared with a one per cent decline reported in fiscal 2025.

The company faces higher costs to export soup to Canada after Ottawa raised tariffs on certain U.S. goods to 35 per cent from 25 per cent effective Aug. 1.

A recent U.S.-EU trade agreement sets a 15 per cent tariff on most EU products entering the United States, lower than earlier proposed rates.

Campbell’s expects annual adjusted earnings per share to fall up to 18% year over year to between US$2.40 and $2.55, below analysts’ average estimate of $2.63, according to LSEG data.

Fourth-quarter net sales rose one per cent to $2.32 billion, missing expectations of $2.33 billion, LSEG data showed.

(Reporting by Anshi Sancheti and Savyata Mishra in Bengaluru; Editing by Tasim Zahid)