The Campbell’s Company Another Fly in CPB’s Soup, as Earnings Headwinds Continue to Mount

Research evidence excerpt

The Campbell’s Company Another Fly in CPB’s Soup, as Earnings Headwinds Continue to Mount

J P M O R G A N North America Equity Research

08 June 2026

The Campbell’s Company Neutral

CPB, CPB US

Another Fly in CPB’s Soup, as Earnings Headwinds Price (08 Jun 26):$21.68

Continue to Mount ▼Price Target (Dec-26):$20.00 Prior (Dec-26):$21.00

Food Producers & Retailers

Thomas Palmer, CFA AC

(1-212) 622-5582

thomas.palmer@jpmorgan.com

Brandon Cohen, CPAThe CPB shares were down 0.9% today (SPX +0.3%) following 3Q26 earnings.

(1-212) 622-4168

The share price was initially indicating higher after 3Q beat by $0.02 and annual brandon.cohen@jpmorgan.com

OSG and EPS guidance was reiterated (initial take), but CPB’s subsequent J.P. Morgan Securities LLC

comments indicated that FY26 EPS were likely to be in the bottom half of its

guidance range, including $0.03-0.04 help from tariff refunds and expected

shipment timing benefits. Its early messaging on FY27 suggests continued Key Changes (FYE Jul)

earnings pressure into FY27 from another year of elevated COGS inflation and also Prev Cur Δ

Adj. EPS - 27E ($) 2.08 1.96 -6.2%

from stepped up incentive comp and marketing largely offsetting next year’s

planned cost savings. CPB has pockets of growth in its portfolio (Rao’s and broth) Quarterly Forecasts (FYE Jul)

that many of its similarly valued food peers do not, though this is not currently Adj. EPS ($)

translating to total sales growth. We find it tough to count on a sustained rally in 2025A 2026E 2027E

the shares until an upward earnings inflection is more apparent, especially when Q1 0.89 0.77A 0.64

considering the constraints presented by the balance sheet (>4x leverage) and Q2 0.74 0.51A 0.49

Q3 0.73 0.50A 0.42

dividend. Our December 2026 price target goes to $20 from $21.