CAMPBELL'S Co
For the period ended Feb 1, 2026. Filed Mar 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 1, 2026 · Filed Mar 11, 2026
CPB$23.13-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-11-02; filed 2025-12-09.
0000016732-25-000126
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-02-01; filed 2026-03-11.
0000016732-26-000006
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 192 current paragraphs.
92 unchanged; 48 reworded; 26 added; 2 removed; 3 previous and 26 current paragraphs rearranged.
Tables are not compared: 8 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
•In the second quarter of 2025, we performed an interim impairment assessment on certain salty snacks and cookie trademarks within our Snacks segment, including Tom's, Jays, Kruncher's, O-Ke-Doke, Stella D'oro and Archway, collectively referred to as our "Allied brands," and recognized an impairment charge of $15 million on the trademarks.
Current report
In the second quarter of 2025, we performed an interim impairment assessment on the Late July trademark within our Snacks segment and recognized an impairment charge of $11 million on the trademark.
Current report
In the second quarter of 2025, the total aggregate impact of the impairment charges was $26 million ($19 million after tax, or $.06 per share).
Current report
The charges were included in Other expenses / (income);
Current report
SECOND-QUARTER DISCUSSION AND ANALYSIS
Current report
In Snacks, sales decreased 6% primarily due to declines in chips and pretzels, fresh bakery related to supply constraints, and third-party partner brands and contract manufacturing. Sales were impacted by volume/mix declines, with neutral net price realization.
Current report
Other expenses were $7 million in 2026 compared to $41 million in 2025. Other expenses in 2025 included impairment charges related to the Allied brands and Late July trademarks of $26 million and accelerated amortization expense of $7 million.
Current report
•$16 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Current report
•$26 million of impairment charges related to the Allied brands and Late July trademarks;
Current report
•$14 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges.
Current report
The effective tax rate was 24.9% in 2026 and 30.0% in 2025. The decrease in the effective tax rate was primarily due to $15 million ofdeferred tax expense recognized related to the sale of the noosa yoghurt business in the prior year, partially offset by lower tax expense associated with stock-based compensation awards in the prior year.
Current report
SIX-MONTH DISCUSSION AND ANALYSIS
Current report
Sales
Current report
Gross Profit
Current report
Marketing and Selling Expenses
Current report
Marketing and selling expenses as a percent of sales were 9.6% in 2026 compared to 9.3% in 2025. Marketing and selling expenses were comparable in 2026 and 2025. Lower selling expenses (approximately 2 points) and increased benefits from cost savings initiatives (approximately 1 point) were offset by higher costs associated with costs savings and optimization initiatives (approximately 2 points) and higher benefit-related costs (approximately 1 point).
Current report
Administrative Expenses
Current report
Other Expenses / (Income)
Current report
Operating Earnings
Current report
•$11 million of certain litigation expenses, including expenses related to Plum;
Current report
•$26 million of impairment charges related to the Allied brands and Late July trademarks;
Current report
Interest Expense
Current report
Taxes on Earnings
Current report
In the third quarter of 2026, we commenced a voluntary early retirement program as part of our cost savings initiatives. The program is available to certain salaried employees who meet age and length-of-service criteria. We currently do not know which employees will elect to participate and therefore are unable to estimate the costs of the program, although we expect these costs to consist primarily of severance pay and benefits, including enhanced pension benefits. We will provide an estimate of the costs expected to be incurred as the program is executed.
Current report
Potential Future Initiatives
Current report
We continue to explore additional opportunities for cost savings designed to enhance operating efficiency, which may result in additional restructuring actions in the future.
Removed paragraphs (2)
Previous report
FIRST-QUARTER DISCUSSION AND ANALYSIS
Previous report
•$10 million of certain litigation expenses, including expenses related to Plum;
Reworded paragraphs (48)
Previous wording
Our industry continues to navigate a dynamic operating and regulatory environment driven by commodity cost volatility, supply chain pressures, tariffs and shifting global trade policies, evolving consumer purchasing and spending patterns and other economic uncertainties. Through the first quarter, we experienced significantly elevated input cost inflation and other supply chain costs, primarily driven by the impacts of tariffs. We anticipate continued supply chain productivity and benefits from cost savings initiatives to mitigate some of these costs in 2026. We expect consumer trends to continue to evolve and our volumes to improve over time; however, shifting consumer behaviors may continue to negatively impact our volumes throughout 2026. We will continue to evaluate the evolving macroeconomic environment and take actions to mitigate the impact on our business, consolidated results of operations and financial condition.
Current wording
Our industry continues to navigate a dynamic operating and regulatory environment driven by commodity cost volatility, supply chain pressures, tariffs and shifting global trade policies, evolving consumer purchasing and spending patterns and other economic uncertainties. Through the second quarter, we experienced elevated input cost inflation, impacts from tariffs and other supply chain costs. We anticipate continued supply chain productivity, benefits from cost savings initiatives and tariff mitigation efforts to offset some of these costs, and we expect inflationary pressures to moderate throughout 2026. We expect consumer trends to continue to evolve and our volumes to improve over time; however, shifting consumer behaviors may continue to negatively impact our volumes throughout 2026. On February 28, 2026, a military conflict commenced in the Middle East involving the United States, Israel and Iran. Although we have no operations in the Middle East, the ongoing geopolitical conflicts in the region could lead to significant disruption of energy supplies and increases in global energy prices, which could heighten inflationary pressures, disrupt global supply chains and adversely impact consumer spending patterns. We will continue to evaluate the evolving macroeconomic environment and take actions to mitigate the impact on our business, consolidated results of operations and financial condition.
Previous wording
•Net sales decreased 3% in the quarter to $2.677 billion primarily due to unfavorable volume/mix and the impact of divestitures, partially offset by favorable net price realization.
Current wording
•Net sales decreased 5% in the quarter to $2.564 billion primarily due to unfavorable volume/mix and the impact of divestiture with neutral net price realization. Net sales were impacted by an approximate 1% headwind as a result of storm-related shipment delays in January.
Previous wording
•Gross profit, as a percent of sales, was 29.6% in 2026 compared to 31.3% in the prior-year quarter. The decrease was primarily due to the impact of cost inflation and other supply chain costs and the gross impact of tariffs, partially offset by benefits from supply chain productivity improvements and favorable net price realization.
Current wording
•Gross profit, as a percent of sales, was 28.0% in 2026 compared to 30.5% in the prior-year quarter. The decrease was primarily due to the impact of cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by benefits from supply chain productivity improvements and favorable net price realization.
Previous wording
•Earnings per share were $.65 in 2026, compared to $.72 in the prior-year quarter. The current quarter included expenses of $.12 per share and the prior-year quarter included expenses of $.16 per share from items impacting comparability as discussed below.
Current wording
•Earnings per share were $.48 in 2026, compared to $.58 in the prior-year quarter. The current quarter included expenses of $.02 per share and the prior-year quarter included expenses of $.16 per share from items impacting comparability as discussed below.
Previous wording
•We implemented several cost savings initiatives in recent years. In the first quarter of 2026, we recorded Restructuring charges of $3 million and implementation costs and other related costs of $8 million in Administrative expenses and $7 million in Cost of products sold related to these initiatives. In the first quarter of 2025, we recorded Restructuring charges of $6 million and implementation costs and other related costs of $11 million in Administrative expenses, $8 million in Cost of products sold, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives.
Current wording
•We implemented several cost savings initiatives in recent years. In the second quarter of 2026, we recorded Restructuring charges of $3 million and implementation costs and other related costs of $9 million in Cost of products sold, $7 million in Administrative expenses, $2 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. In the second quarter of 2025, we recorded Restructuring charges of $5 million and implementation costs and other related costs of $10 million in Cost of products sold, $8 million in Administrative expenses, $1 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. Year-to-date in 2026, we recorded Restructuring charges of $6 million and implementation costs and other related costs of $16 million in Cost of products sold, $15 million in Administrative expenses, $2 million in Marketing and selling expenses and $1 million in Research and development expenses related to these initiatives. Year-to-date in 2025, we recorded Restructuring charges of $11 million and implementation costs and other related costs of $19 million in Administrative expenses, $18 million in Cost of products sold, $2 million in Marketing and selling expenses and $2 million in Research and development expenses related to these initiatives.
Previous wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. In the first quarter of 2026, we recognized $16 million in Marketing and selling expenses related to this initiative. In the first quarter of 2025, we recognized $8 million in Marketing and selling expenses related to this initiative.
Current wording
In the second quarter of 2024, we began implementation of an optimization initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. In the second quarter of 2026, we recognized $2 million in Marketing and selling expenses related to this initiative. Year-to-date in 2026, we recognized $18 million in Marketing and selling expenses related to this initiative. Year-to-date in 2025, we recognized $8 million in Marketing and selling expenses related to this initiative.
Previous wording
In the first quarter of 2026, the total aggregate impact related to the cost savings and optimization initiatives was $34 million ($26 million after tax, or $.09 per share). In the first quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $35 million ($27 million after tax, or $.09 per share). See Note 7 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Current wording
In the second quarter of 2026, the total aggregate impact related to the cost savings and optimization initiatives was $24 million ($18 million after tax, or $.06 per share). In the second quarter of 2025, the total aggregate impact related to the cost savings and optimization initiatives was $25 million ($19 million after tax, or $.06 per share). Year-to-date in 2026, the total aggregate impact related to the cost savings and optimization initiatives was $58 million ($44 million after tax, or $.15 per share). Year-to-date in 2025, the total aggregate impact related to the cost savings and optimization initiatives was $60 million ($46 million after tax, or $.15 per share). See Note 8 to the Consolidated Financial Statements and "Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives" for additional information;
Previous wording
•In the first quarter of 2026, we recognized losses in Cost of products sold of $2 million ($2 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the first quarter of 2025, we recognized gains in Cost of products sold of $4 million ($3 million after tax, or $.01 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Current wording
•In the second quarter of 2026, we recognized gains in Cost of products sold of $16 million ($12 million after tax, or $.04 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. In the second quarter of 2025, we recognized gains in Cost of products sold of $14 million ($10 million after tax, or $.03 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2026, we recognized gains in Cost of products sold of $14 million ($10 million after tax, or $.03 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges. Year-to-date in 2025, we recognized gains in Cost of products sold of $18 million ($13 million after tax, or $.04 per share) associated with unrealized mark-to-market adjustments on outstanding undesignated commodity hedges;
Previous wording
•In the first quarter of 2026, we recorded litigation expenses in Administrative expenses of $10 million ($7 million after tax, or $.02 per share) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. In the first quarter of 2025, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to Plum and certain other litigation matters;
Current wording
•In the second quarter of 2026, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to the Plum baby food and snacks business (Plum), which was divested on May 3, 2021, and certain other litigation matters. In the second quarter of 2025, we recorded litigation expenses in Administrative expenses of $1 million ($1 million after tax) related to Plum and certain other litigation matters. Year-to-date in 2026, we recorded litigation expenses in Administrative expenses of $11 million ($8 million after tax, or $.03 per share) related to Plum and certain other litigation matters. Year-to-date in 2025, we recorded litigation expenses in Administrative expenses of $2 million ($2 million after tax, or $.01 per share) related to Plum and certain other litigation matters;
Previous wording
•In the first quarter of 2026, we recognized costs associated with a pending acquisition in Other expenses / (income) of $2 million ($2 million after tax, or $.01 per share);
Current wording
•In the second quarter of 2026, we entered into purchase agreements to acquire 49% of the issued and outstanding equity interests of La Regina. The acquisition is subject to certain customary conditions. Year-to-date in 2026, we recognized costs associated with the pending acquisition in Other expenses / (income) of $2 million ($2 million after tax, or $.01 per share);
Previous wording
•In the first quarter of 2026 and 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023;
Current wording
•Year-to-date in 2026 and 2025, we recognized insurance recoveries in Administrative expenses of $1 million ($1 million after tax) related to a cybersecurity incident that was identified in the fourth quarter of 2023;
Previous wording
•In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business.
Current wording
•In the second quarter of 2025, we recorded $15 million ($.05 per share) of deferred tax expense related to the sale of the noosa yoghurt business, which was completed on February 24, 2025. In the first quarter of 2025, we recorded a loss in Other expenses / (income) of $25 million ($19 million after tax, or $.06 per share) on the sale of our Pop Secret popcorn business. Year-to-date in 2025, the total aggregate impact of charges associated with divestitures was $25 million ($34 million after tax, or $.11 per share);
Previous wording
•In the first quarter of 2025, we recorded accelerated amortization expense in Other expenses / (income) of $7 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023; and
Current wording
•In the second quarter of 2025, we recorded accelerated amortization expense in Other expenses / (income) of $7 million ($5 million after tax, or $.02 per share) related to customer relationship intangible assets due to the loss of certain contract manufacturing customers, which began in the fourth quarter of 2023. Year-to-date in 2025, we recorded accelerated amortization expense in Other expenses / (income) of $14 million ($10 million after tax, or $.03 per share); and
Previous wording
•In the first quarter of 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment;
Current wording
•Year-to-date in 2025, we recognized an actuarial loss in Other expenses / (income) of $2 million ($1 million after tax) related to an interim remeasurement of our postretirement plan due to a plan amendment.
Previous wording
Net earnings attributable to The Campbell's Company were $194 million ($.65 per share) in the current quarter, compared to $218 million ($.72 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to lower gross profit, partially offset by lower administrative expenses and lower marketing and selling expenses. The estimated net impact of tariffs was approximately $.04 per share in the current quarter. The negative impact from divestitures was approximately $.01 per share in the current quarter.
Current wording
Net earnings attributable to The Campbell's Company were $145 million ($.48 per share) in the current quarter, compared to $173 million ($.58 per share) in the year-ago quarter. After adjusting for items impacting comparability, earnings decreased primarily due to lower gross profit, partially offset by lower marketing and selling expenses and lower administrative expenses. The estimated net impact of tariffs was approximately $.06 per share in the current quarter. The estimated net impact of January storm-related shipment delays and incremental supply chain costs was approximately $.04 per share in the current quarter. The negative impact from the divestiture was approximately $.01 per share in the current quarter.
Previous wording
Gross profit, defined as Net sales less Cost of products sold, decreased by $75 million in 2026 from 2025. As a percent of sales, gross profit declined to 29.6% in 2026 from 31.3% in 2025, due in part to the negative impact of tariffs.
Current wording
Gross profit, defined as Net sales less Cost of products sold, decreased by $102 million in 2026 from 2025. As a percent of sales, gross profit declined to 28.0% in 2026 from 30.5% in 2025, due in part to the negative impact of tariffs.
Previous wording
The 170 basis-point decrease in gross profit margin was due to the following factors:
Current wording
The 250 basis-point decrease in gross profit margin was due to the following factors:
Previous wording
Marketing and selling expenses as a percent of sales were 9.5% in 2026 compared to 9.0% in 2025. Marketing and selling expenses increased 1% in 2026 from 2025. The increase was primarily due to higher costs associated with costs savings and optimization initiatives (approximately 3 points) and higher marketing expenses (approximately 2 points), partially offset by lower selling expenses (approximately 2 points); increased benefits from cost savings initiatives (approximately 1 point) and lower incentive compensation (approximately 1 point).
Current wording
Marketing and selling expenses as a percent of sales were 9.8% in 2026 compared to 9.5% in 2025. Marketing and selling expenses decreased 2% in 2026 from 2025. The decrease was primarily due to lower selling expenses (approximately 2 points) and increased benefits from cost savings initiatives (approximately 1 point), partially offset by higher costs associated with costs savings and optimization initiatives (approximately 1 point).
Previous wording
Segment operating earnings decreased 12% in 2026 from 2025.
Current wording
Segment operating earnings decreased 21% in 2026 from 2025.
Previous wording
•costs of $31 million related to costs savings and optimization initiatives;
Current wording
•costs of $21 million related to costs savings and optimization initiatives;
Previous wording
•costs of $29 million related to cost savings and optimization initiatives;
Current wording
•costs of $20 million related to cost savings and optimization initiatives;
Previous wording
Interest expense of $81 million in 2026 decreased from $87 million in 2025 primarily due to lower levels of debt.
Current wording
Interest expense of $82 million in 2026 decreased from $88 million in 2025 primarily due to lower levels of debt.
Previous wording
In Meals & Beverages, sales decreased 4%. Excluding the impact from the divestiture of the noosa yoghurt business, sales decreased primarily due to declines in U.S. soup, Canada, SpaghettiOs, Pace Mexican sauces and V8 beverages, partially offset by gains in Rao's. Unfavorable volume/mix was partially offset by favorable net price realization. Sales of U.S. soup decreased 2% primarily due to decreases in ready-to-serve soups and condensed soups, partially offset by increases in broth.
Current wording
In Meals & Beverages, sales decreased 4%. Excluding the impact from the divestiture of the noosa yoghurt business, sales decreased primarily due to declines in U.S. soup, Prego pasta sauces, Canada, V8 beverages and Pace Mexican sauces, partially offset by gains in Rao's. Unfavorable volume/mix was partially offset by favorable net price realization. Sales were impacted by an approximate 1% headwind as a result of storm-related shipment delays in January. Sales of U.S. soup decreased 3% primarily due to decreases in ready-to-serve soups and condensed soups, partially offset by increases in broth.
Previous wording
In Snacks, sales decreased 2%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased primarily due to declines in third-party partner brands and contract manufacturing, Snyder's of Hanover pretzels, fresh bakery, Goldfish crackers and Cape Cod potato chips, partially offset by gains in Pepperidge Farm cookies. Sales were impacted by volume/mix declines, partially offset by favorable net price realization.
Current wording
In Snacks, sales decreased 4%. Excluding the impact from the divestiture of the Pop Secret popcorn business, sales decreased primarily due to declines in chips, third-party partner brands and contract manufacturing, fresh bakery related to supply constraints, and declines in crackers and pretzels, partially offset by gains in Pepperidge Farm cookies. Sales were impacted by volume/mix declines, partially offset by favorable net price realization.
Previous wording
(1)Includes an estimated negative margin impact of 200 basis points from the gross impact of tariffs, a negative margin impact of 20 basis points from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges, partially offset by a positive margin impact of 20 basis points from the benefit of cost savings initiatives.
Current wording
(1)Includes an estimated negative margin impact of 220 basis points from the gross impact of tariffs and a negative margin impact of 10 basis points from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges, partially offset by an estimated positive margin impact of 20 basis points from the benefit of cost savings initiatives.
Previous wording
Administrative expenses as a percent of sales were 6.2% in 2026 compared to 6.3% in 2025. Administrative expenses decreased 5% in 2026 from 2025. The decrease was primarily due to increased benefits from cost savings initiatives (approximately 3 points); lower incentive compensation (approximately 3 points); lower benefit-related costs (approximately 2 points) and lower costs associated with cost savings initiatives (approximately 2 points), partially offset by higher certain litigation expenses (approximately 5 points).
Current wording
Administrative expenses as a percent of sales were 6.2% in 2026 and 2025. Administrative expenses decreased 4% in 2026 from 2025. The decrease was primarily due to increased benefits from cost savings initiatives (approximately 4 points); lower incentive compensation (approximately 2 points); and lower costs associated with cost savings initiatives (approximately 1 point), partially offset by higher certain litigation expenses (approximately 3 points).
Previous wording
Other expenses were $9 million in 2026 compared to $43 million in 2025. Other expenses in 2026 included costs associated with a pending acquisition of $2 million. Other expenses in 2025 included a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $7 million and a postretirement actuarial loss of $2 million.
Current wording
Other expenses were $16 million in 2026 compared to $84 million in 2025. Other expenses in 2026 included costs associated with a pending acquisition of $2 million. Other expenses in 2025 included impairment charges related to the Allied brands and Late July trademarks of $26 million, a loss of $25 million on the sale of the Pop Secret popcorn business, accelerated amortization expense of $14 million and a postretirement actuarial loss of $2 million.
Previous wording
Operating earnings from Meals & Beverages decreased 13%. The decrease was primarily due to lower gross profit and the impact of the divestiture. Gross profit margin decreased primarily due to the gross impact of tariffs, cost inflation and other supply chain costs and unfavorable volume/mix, partially offset by supply chain productivity improvements and favorable net price realization.
Current wording
Operating earnings from Meals & Beverages decreased 14%. The decrease was primarily due to lower gross profit and the impact of the divestiture. Gross profit margin decreased primarily due to the gross impact of tariffs, cost inflation and other supply chain costs and unfavorable volume/mix, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.
Previous wording
Operating earnings from Snacks decreased 10%. The decrease was primarily due to lower gross profit. Gross profit margin decreased primarily due to cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.
Current wording
Operating earnings from Snacks decreased 22%. The decrease was primarily due to lower gross profit. Gross profit margin decreased primarily due to cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.
Previous wording
•$2 million of costs associated with a pending acquisition; and
Current wording
•$2 million of costs associated with a pending acquisition;
Previous wording
•$4 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Current wording
•$14 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
Previous wording
•$2 million of unrealized mark-to-market losses on outstanding undesignated commodity hedges;
Current wording
•$2 million of certain litigation expenses, including expenses related to Plum;
Previous wording
The effective tax rate was 24.2% in 2026 and 23.2% in 2025. The increase in the effective tax rate was primarily due to excess tax benefits in the prior year and shortfalls in the current year associated with the vesting of stock-based compensation awards, partially offset by the favorable resolution of certain state tax matters in the current year.
Current wording
The effective tax rate was 24.5% in 2026 and 26.4% in 2025. The decrease in the effective tax rate was primarily due to $15 million of deferred tax expense related to the sale of the noosa yoghurt business in the prior year and the favorable resolution of certain state tax matters in the current year, partially offset by excess tax benefits in the prior year and shortfalls in the current year associated with the vesting of stock-based compensation awards.
Previous wording
A summary of the pre-tax costs associated with the initiatives is as follows:
Current wording
A summary of the cumulative pre-tax costs associated with the initiatives is as follows:
Previous wording
The total estimated pre-tax costs for actions that have been identified to date are approximately $230 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed.
Current wording
The total estimated pre-tax costs for actions that have been identified to date are approximately $245 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed.
Previous wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $35 million in severance pay and benefits; approximately $50 million in asset impairment and accelerated depreciation; and approximately $145 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 61%; Snacks - approximately 19% and Corporate - approximately 20%.
Current wording
We expect the costs for the actions that have been identified to date to consist of the following: approximately $35 million in severance pay and benefits; approximately $55 million in asset impairment and accelerated depreciation; and approximately $155 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 56%; Snacks - approximately 23% and Corporate - approximately 21%.
Previous wording
Of the aggregate $230 million of pre-tax costs identified to date, we expect approximately $175 million will be cash expenditures. In addition, we expect to invest approximately $205 million in capital expenditures, of which we invested $164 million as of November 2, 2025. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands.
Current wording
Of the aggregate $245 million of pre-tax costs identified to date, we expect approximately $185 million will be cash expenditures. In addition, we expect to invest approximately $215 million in capital expenditures, of which we invested $187 million as of February 1, 2026. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands.
Previous wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $375 million by the end of 2028. As of November 2, 2025, we have generated total program-to-date pre-tax savings of $160 million.
Current wording
We expect the initiatives, once all phases are implemented, to generate annual ongoing savings of approximately $375 million by the end of 2028. As of February 1, 2026, we have generated total program-to-date pre-tax savings of $180 million.
Previous wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three-month period ended November 2, 2025, we incurred $16 million in
Current wording
In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $115 million through 2029. In the three-month period ended February 1, 2026, we incurred $2 million in Marketing and selling expenses related to this initiative. In the six-month periods ended February 1, 2026 and January 26, 2025, we incurred $18 million and $8 million in Marketing and selling expenses related to this initiative, respectively. As of February 1, 2026, we have incurred $43 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.
Previous wording
We generated cash flows from operations of $224 million in 2026, compared to $225 million in 2025. The decline in 2026 was primarily due to lower cash earnings mostly offset by changes in working capital.
Current wording
We generated cash flows from operations of $740 million in 2026, compared to $737 million in 2025. The increase in 2026 was primarily due to changes in working capital mostly offset by lower cash earnings.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (26)
Current report — wording carried from elsewhere
Net earnings attributable to The Campbell's Company were $339 million ($1.13 per share) in the six-month period this year, compared to $391 million ($1.30 per share) in the year-ago period. After adjusting for items impacting comparability, earnings decreased primarily due to lower gross profit, partially offset by lower administrative expenses and lower marketing and selling expenses. The estimated net impact of tariffs was approximately $.10 per share in the current period. The estimated net impact of January storm-related shipment delays and incremental supply chain costs was approximately $.04 per share in the current period. The negative impact from divestitures was approximately $.02 per share in the current period.
Current report — wording carried from elsewhere
In Meals & Beverages, sales decreased 4%. Excluding the impact from the divestiture of the noosa yoghurt business, sales decreased primarily due to declines in U.S. soup, Prego pasta sauces, foodservice and V8 beverages, partially offset by gains in Rao's. Unfavorable volume/mix was partially offset by favorable net price realization. Sales were impacted by an approximate 1% headwind as a result of storm-related shipment delays in January. Sales of U.S. soup decreased 4% with decreases in condensed soups, ready-to-serve soups and broth.
Current report — wording carried from elsewhere
(1)Includes an estimated negative margin impact of 230 basis points from the gross impact of tariffs, partially offset by an estimated positive margin impact of 30 basis points from the benefit of cost savings initiatives and a positive margin impact of 10 basis points from the change in unrealized mark-to-market adjustments on outstanding undesignated commodity hedges.
Current report — wording carried from elsewhere
Administrative expenses as a percent of sales were 6.2% in 2026 compared to 6.1% in 2025. Administrative expenses decreased 3% in 2026 from 2025. The decrease was primarily due to increased benefits from cost savings initiatives (approximately 5 points) and lower costs associated with cost savings initiatives (approximately 1 point), partially offset by higher benefit-related costs (approximately 2 points) and inflation (approximately 1 point).
Current report — wording carried from elsewhere
Operating earnings from Meals & Beverages decreased 15%. The decrease was primarily due to lower gross profit and the impact of the divestiture, partially offset by lower marketing and selling expenses. Gross profit margin decreased primarily due to the gross impact of tariffs, cost inflation and other supply chain costs and unfavorable volume/mix, partially offset by supply chain productivity improvements, favorable net price realization and benefits from cost savings initiatives.
Current report — wording carried from elsewhere
Operating earnings from Snacks decreased 39%. The decrease was primarily due to lower gross profit. Gross profit margin decreased primarily due to cost inflation and other supply chain costs, the gross impact of tariffs and unfavorable volume/mix, partially offset by supply chain productivity improvements and benefits from cost savings initiatives.
Current report — wording carried from elsewhere
•$1 million of certain litigation expenses, including expenses related to Plum; and
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•$1 million of certain litigation expenses, including expenses related to Plum; and
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An analysis of net sales by reportable segment follows:
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An analysis of percent change of net sales by reportable segment follows:
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(1)Includes revenue reductions from trade promotion and consumer coupon redemption programs.
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(2)Sum of the individual amounts does not add due to rounding.
Current report — wording carried from elsewhere
Gross profit, defined as Net sales less Cost of products sold, decreased by $177 million in 2026 from 2025. As a percent of sales, gross profit declined to 28.8% in 2026 from 30.9% in 2025, due in part to the negative impact of tariffs.
Current report — wording carried from elsewhere
The 210 basis-point decrease in gross profit margin was due to the following factors:
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(2)Includes the impact of operating leverage.
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Segment operating earnings decreased 16% in 2026 from 2025.
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An analysis of operating earnings by segment follows:
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(1)See Note 8 to the Consolidated Financial Statements for additional information on restructuring charges.
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Corporate expense in 2026 included the following:
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•costs of $52 million related to costs savings and optimization initiatives;
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Corporate expense in 2025 included the following:
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•costs of $49 million related to cost savings and optimization initiatives;
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•$14 million of accelerated amortization expense;
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•$18 million of unrealized mark-to-market gains on outstanding undesignated commodity hedges; and
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Interest expense of $163 million in 2026 decreased from $175 million in 2025 primarily due to lower levels of debt.
Current report — wording carried from elsewhere
On December 15, 2025, pursuant to the registration statement, we completed the issuance of senior unsecured notes, consisting of $550 million aggregate principal amount of notes bearing interest at a fixed rate of 4.55% per annum, due March 21, 2031, with interest payable semi-annually on each of March 21 and September 21 commencing March 21, 2026. The notes contain customary covenants and events of default. If a change of control triggering event occurs, we will be required to offer to purchase the notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest, if any, to the purchase date. We used a portion of the proceeds from the issuance of the notes to repay a portion of our outstanding commercial paper and plan to use the remaining proceeds to repay existing indebtedness and for general corporate purposes. We have $400 million aggregate principal amount of senior notes maturing in March 2026 that we expect to repay using available resources, which may include cash on hand, commercial paper and/or our revolving credit facility.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•$1 million of certain litigation expenses, including expenses related to Plum;
Previous report — wording carried elsewhere
Marketing and selling expenses related to this initiative. In the three-month period ended October 27, 2024, we incurred $8 million in Marketing and selling expenses related to this initiative. As of November 2, 2025, we have incurred $41 million in Marketing and selling expenses and $1 million in Administrative expenses related to this initiative.
Previous report — wording carried elsewhere
This Report contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current expectations regarding our future results of operations, economic performance, financial condition and achievements. These forward-looking statements can be identified by words such as