How Soft Q1 Results and New Debt Will Impact Campbell's (CPB) Investors

• In early December 2025, The Campbell's Company reported first‑quarter fiscal 2026 results showing net sales of US$2,677 million and net income of US$194 million, both down from a year earlier, while also issuing US$548.812 million of 4.550% senior unsecured notes due 2031 priced slightly below par.
• The combination of softer volumes, pressure on margins, high short interest, and fresh debt issuance has sharpened investor focus on Campbell’s balance sheet strength and its ability to improve profitability while reaffirming guidance.
• Next, we’ll examine how weaker first‑quarter sales and the reaffirmed full‑year outlook interact with Campbell’s existing investment narrative.

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Campbell's Investment Narrative Recap

To own Campbell’s today, you need to believe the company can stabilize volumes in soups and snacks while defending margins under ongoing cost pressure. The weak first quarter and new US$548.812 million debt issue sharpen attention on near term profitability and balance sheet risk, but they do not fundamentally change the key catalyst, which is whether cost savings and brand investment can offset demand softness. The biggest near term risk is that volume declines persist even as leverage creeps higher.

The most relevant recent announcement is the reaffirmed fiscal 2026 outlook for flat to slightly negative organic net sales despite a 3% first quarter sales drop. Holding guidance in place after a weaker quarter puts a spotlight on Campbell’s ability to realize its US$375 million cost savings target and protect earnings without leaning too heavily on further restructuring or pricing, which directly ties back to the risk that cost initiatives become harder to execute cleanly over time.

Yet beneath the steady dividend and familiar brands, investors should be aware of how rising debt, soft volumes, and margin pressure intersect with Campbell’s already fragile...

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 implies flat (0.0% annually) revenue growth and an earnings increase of about $266.6 million from $602.0 million today.

Uncover how Campbell's forecasts yield a $33.84 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently see Campbell’s fair value between US$29 and about US$61, reflecting very different return expectations. Set those views against the recent sales decline and higher leverage, and it becomes clear why you may want to compare several risk and reward cases before deciding where Campbell’s fits in your portfolio.

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

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Campbell's research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Campbell's research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Campbell's overall financial health at a glance.

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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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