Does Expected Q1 Margin Pressure From Tariffs And Marketing Reframe Campbell's (CPB) At‑Home Demand Story?

Simply Wall St
  • Campbell's is set to report its first-quarter fiscal 2026 earnings on 9 December 2025, with analysts expecting pressure on revenue and margins from tariffs and higher marketing expenses, alongside softness in the Snacks segment.
  • Despite these headwinds, analysts highlight Campbell's consistent record of exceeding earnings estimates and continued support from at-home cooking trends bolstering its Meals & Beverages division.
  • We’ll now examine how expectations for margin pressure from tariffs and marketing spend may influence Campbell's broader investment narrative.

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Campbell's Investment Narrative Recap

To own Campbell’s, you need to believe its core pantry brands can offset slow category growth and cost pressure from tariffs and marketing. The latest earnings expectations mainly reinforce the key near term catalyst, which is whether Meals & Beverages can keep leveraging at home cooking demand, while the biggest current risk remains sustained margin compression from tariffs on aluminum and imported ingredients.

Among recent announcements, the appointment of Todd Cunfer as CFO in October 2025 stands out in this context, as investors weigh how new financial leadership might respond to tariff driven cost pressure and higher marketing spend. How effectively capital allocation, cost control and brand support are balanced from here will help shape whether Campbell’s can preserve earnings quality despite softer Snacks performance.

Yet behind the comfort of resilient soup demand, investors should be aware of how exposed Campbell’s margins are to prolonged tariff pressure on...

Read the full narrative on Campbell's (it's free!)

Campbell's narrative projects $10.2 billion revenue and $868.6 million earnings by 2028. This requires a 0.0% yearly revenue decline and about a $266.6 million earnings increase from $602.0 million today.

Uncover how Campbell's forecasts yield a $33.84 fair value, a 14% upside to its current price.

Exploring Other Perspectives

CPB Community Fair Values as at Dec 2025

Five members of the Simply Wall St Community value Campbell’s between US$29 and about US$63, underscoring how far apart individual views on upside potential really are. You might weigh those alongside current concerns that tariffs on aluminum and imported ingredients could lock in a lower profit base and shape Campbell’s performance over the next few years.

Explore 5 other fair value estimates on Campbell's - why the stock might be worth over 2x more than the current price!

Build Your Own Campbell's Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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