THE CAMPBELL'S COMPANY (-) : F3Q26 Q&A Call Notes - Lower End of Outlook More Likely

Research evidence excerpt

THE CAMPBELL'S COMPANY (-) : F3Q26 Q&A Call Notes - Lower End of Outlook More Likely

EQUITIES

FOOD & HPC

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

FLASH NOTE

F3Q26 Q&A Call Notes – Lower End of Outlook More Likely

8 JUNE 2026 Securities Research Report Production time: 16:02* (London time)

Research Analyst & Publishing Entities

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

BNPP View

Perhaps most important, the company indicated the lower end of its outlook for both net sales and adjusted EPS is now

more likely.

Notes From Management’s Q&A Call

– FY27 Inflation: Before the Middle East conflict, the company expected FY27 base inflation of ~+3% YOY. If oil

stays at ~$100 per barrel, then it expects +2-3 pts of incremental inflation due to direct and indirect impacts. The

company also noted that there is a driver shortage that is also causing higher inflation from a logistics and freight

perspective as well.

– FY27 Incentive Comp: ~-$40mm impact to profit from rebuilding incentive comp

– FY27 SG&A Savings: The company had previously announced a ~$100mm cost savings program across SG&A

over the next couple of years. While that won’t be all in FY27, the company will fast forward as much as it can to

offset cost pressures next fiscal year

– FY27 Net Price Realization: The company will look at revenue growth management opportunities. It will look

very hard at trade ROIs and will take pricing if needed as a last resort

– Dividend: The company believes the dividend is extremely important to shareholders and the company will

balance the dividend rate with its ability to reduce leverage as quickly as possible. The company does not expect

to raise the dividend anytime soon.