CPB: EPS Aftermath – A Long Road to Recovery

Research evidence excerpt

CPB: EPS Aftermath – A Long Road to Recovery

RBC Capital Markets, LLC

Nik Modi (Co-Head of Global Consumer & Retail Research)

(212) 905-5993, nik.modi@rbccm.com

Chris Peters (AVP)

(212) 437-1948, chris.peters@rbccm.com

Clark Lee (AVP)

(212) 301-1477, clark.lee@rbccm.com

Curtis Farfan, CFA (AVP)

June 9, 2026 (212) 437-1997, curtis.farfan@rbccm.com

The Campbell's CompanyRESEARCH EPS Aftermath – A Long Road to Recovery Sector Perform

NYSE: CPB; USD 21.49 Our view: As expected, CPB's F3Q results painted a picture of an operating

environment that remains challenging from both a demand and cost Price Target USD 21.00 ↓ 23.00

perspective. Full year guidance was maintained, though management Scenario Analysis*

pointed toward the lower end and indicated that FY'27 could face elevated

Downside Price Current Upside

inflation throughout the year should the Middle East conflict continue. Scenario Target Price Scenario

Although they are encouraged by some bright spots, it is evident that a 10.00 21.00 21.49 30.00

recovery in the Snacks business will not happen overnight, and we think 47% 5% 46%EQUITY

demand challenges will likely persist well into next year. We reduce our *Implied Total Returns

price target to $21 and maintain our Sector Perform rating. Key Statistics

Shares O/S (MM): 299.0 Market Cap (MM): 6,426

Key points: Dividend: 1.48 Yield: 6.9%

Positives: 1) At-Home Cooking – The structural at-home cooking trend Avg. Daily Volume: 7,587,553

continues to be a tangible growth engine for M&B's cooking-oriented RBC Estimates

condensed soup portfolio, which the company is leaning into (with FY Jul 2024A 2025A 2026E 2027E

investment) and sees a long runway ahead. CPB cooking consumption Revenue 9,636.0 10,253.0 9,754.5 9,695.5