A maker of soups, snacks, and simple meals behind familiar names like Campbell's condensed soups, Goldfish crackers, Pepperidge Farm, and Rao's pasta sauces. It was founded in 1869 in Camden, New Jersey, when a fruit merchant and an icebox maker teamed up to can tomatoes and vegetables; a nephew chemist later invented condensed soup, which made the cans cheaper to ship. The brand is so iconic that Andy Warhol painted its tomato soup can in 1962, cementing it in pop-culture history.
Gross margin fell to 27.5% as a 310-basis-point tariff impact drove the lowest quarterly margin in the data shown.
Tariffs are reshaping Campbell's cost structure. fell 4% to $2.366 billion and contracted 190 to 27.5%, driven by a 310-basis-point gross tariff impact that productivity gains could not fully offset. The company is now running well below its historical profitability, and the Snacks 's 32% operating earnings drop shows the pressure is spreading beyond the factory floor.
Key takeaways
contracted 190 to 27.5%, the lowest quarterly print in the data shown, as a 310-basis-point gross tariff impact combined with cost inflation and supply chain costs overwhelmed supply chain productivity improvements and favorable net price realization.
The Snacks 's operating earnings fell 32% to $95 million on a 4% sales decline, with volume and mix decreases across the portfolio continuing a multi-quarter deterioration that has now triggered $176 million in cumulative trademark charges over the past year.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales fell 4% to $2.366B on volume/mix declines and divestitures; gross margin contracted 190 bps driven by tariffs and cost inflation.
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Consolidated decreased 4% to $2.366 billion, with both Meals & Beverages and Snacks segments declining 4% due to unfavorable and the noosa divestiture, partially offset by favorable .
Meals & Beverages operating earnings fell 16% to $213 million, driven by lower , even as the Rao's brand continued to provide a partial offset within the .
rose to $124 million, or $0.41 per share, from $66 million, or $0.22 per share, a year ago, but the increase was entirely due to the prior-year quarter including a $150 million non-cash Snyder's of Hanover trademark charge.
Year-to-date was $839 million, down from $872 million a year ago, while for the quarter was $29 million, down 42% .
The company entered into $600 million in fixed-to-floating interest rate swaps during the second quarter, converting a portion of its 4.75% Notes due 2035 to variable-rate debt, with the fair value of the instruments at a $10 million loss as of May 3, 2026.
What changed
The tariff impact intensified: the gross tariff widened from 200 in Q1 FY2026 and 230 basis points in Q2 FY2026 to 310 basis points in Q3, confirming the escalation flagged in the FY2025 10-K as a material cost pressure for fiscal 2026.
fell to 27.5%, below the 28.0% print from Q2 FY2026 that was already the lowest in the data shown, indicating that productivity improvements are not keeping pace with the accelerating tariff and cost-inflation headwinds.
The Snacks 's operating earnings decline deepened to 32% from a 39% drop in Q2 FY2026, but the prior quarter's drop was amplified by charges; the Q3 decline reflects ongoing volume and mix deterioration in the base business, consistent with the pattern flagged in earlier filings.
The $400 million in senior notes maturing in March 2026, flagged in Q1 and Q2 FY2026 as a refinancing event to watch, were repaid or refinanced during the quarter, with declining to $6.146 billion from $6.647 billion at the end of Q2.
What to watch
Whether can recover from 27.5% in Q4 FY2026 as the company laps the steepest tariff impacts, or whether the 310-basis-point persists and drives further compression.
Whether the Snacks 's volume and mix stabilizes after a 32% operating earnings drop, or whether the deterioration spreads further into power brands beyond those already impaired.
The pace of cost-savings realization against the $375 million target by fiscal 2028, and whether the savings accelerate enough to offset the tariff-driven .
The impact of the $600 million in fixed-to-floating interest rate swaps on , given the $10 million fair-value loss already recorded and the potential for rising variable rates.
margin fell 190 to 27.5%, primarily from the gross impact of tariffs (310 bps ), cost inflation, and supply chain costs, partially offset by supply chain productivity improvements and favorable .
Meals & Beverages operating earnings decreased 16% to $213 million, driven by lower , while Snacks operating earnings fell 32% to $95 million on similar margin pressures.
attributable to the company rose to $124 million ($0.41 per share) from $66 million ($0.22 per share), with the prior-year quarter including a $150 million Snyder's of Hanover trademark charge.
was $839 million year-to-date, down from $872 million, while the company expects elevated inflationary pressures to persist and continues to target $375 million in annual savings from cost initiatives by the end of 2028.
Quantitative and Qualitative Disclosures About Market Risk
For information regarding our exposure to certain market risk, see Item 7A, Quantitative and Qualitative Disclosure About Market Risk, in our 2025 Annual Report on Form 10-K. During the second quarter ended February 1, 2026, we entered into fixed-to-floating interest rate swaps…
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For information regarding our exposure to certain market risk, see Item 7A, Quantitative and Qualitative Disclosure About Market Risk, in our 2025 Annual Report on Form 10-K. During the second quarter ended February 1, 2026, we entered into fixed-to-floating interest rate swaps accounted for as fair-value hedges. These instruments have a notional amount of $600 million and effectively convert a portion of our $800 million 4.75% Notes due March 23, 2035 from fixed-rate to variable-rate debt. The fair value of the instruments was a loss of $10 million as of May 3, 2026. There were no fixed-to-floating interest rate swaps outstanding as of August 3, 2025.
Information regarding reportable legal proceedings is contained in Note 17 to the Consolidated Financial Statements and incorporated herein by reference.
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Information regarding reportable legal proceedings is contained in Note 17 to the Consolidated Financial Statements and incorporated herein by reference.