THE CAMPBELL'S COMPANY (-) : F3Q26 Quick Take - Beat Driven by SG&A and Tax

Research evidence excerpt

THE CAMPBELL'S COMPANY (-) : F3Q26 Quick Take - Beat Driven by SG&A and Tax

EQUITIES

FOOD & HPC

THE CAMPBELL'S COMPANY UNDERPERFORMPRICE* USD21.7  TARGET PRICE USD15 (DOWNSIDE 31%)

FLASH NOTE

F3Q26 Quick Take – Beat Driven by SG&A and Tax

8 JUNE 2026 Securities Research Report Production time: 13:20* (London time)

Research Analyst & Publishing Entities

Max Gumport BNP Paribas Securities Corp (1) (+1) 917 583 4529 max.gumport@us.bnpparibas.com

1st Take

On the one hand, CPB delivered an adjusted EPS beat and reaffirmed its FY26 guidance. Particularly given crowded

short interest in the name, this could suggest a positive share price reaction. On the other hand, the beat was driven

entirely by SG&A and below-the-line items, and the guidance reaffirmation was enabled partly due to the company now

anticipating a tariff refund benefit in F4Q26. We don’t see much to get excited about given this combination.

In our view, most important will be how today’s results influence investors’ views on FY27. Two key concerns are the

company’s ability to stabilize organic sales in Snacks and to manage through what is likely to be a year of elevated

inflation. On both these fronts, we see little in today’s commentary that could excite investors. With regard to Snacks,

while the company pointed to some “early signs of progress”, it remains rather early indeed with organic sales down -4%

YOY. And with regard to inflation, the company acknowledged today that, should oil prices remain around $100 per

barrel, its early estimates would suggest +2-3 pts of incremental inflation above its typical base inflation rate.

Net, we’d not be surprised if shares open up given positioning, but we see little in today’s results that would make us

more positively inclined on the name.

Quarterly Performance