Campbell Soup (CPB) Stock Forecast & Price Target

Campbell's has demonstrated resilience and adaptability in the packaged food industry, with snacks now comprising 43% of its revenue, indicating a successful diversification from its traditional soup offerings. The company has also raised its FY26E non-GAAP EPS from $2.43 to $2.44, underscoring its commitment to driving improved financial performance despite competitive pressures and evolving consumer preferences. Moreover, the strategic focus on enhancing brand support for Rao's, along with a commitment to align products with wellness trends and consumer habits, positions Campbell's favorably for future growth opportunities.

Campbell's is projecting a decline in adjusted EBIT by 9% to 13% for fiscal 2026, primarily due to the impact of net tariffs, indicating potential challenges in maintaining profitability. The company's gross margin has decreased by 150 basis points year-over-year to 29.9%, largely driven by cost inflation and supply chain expenses, which may hinder its ability to manage costs effectively. Additionally, the competitive landscape, particularly in traditional retail grocery channels, poses risks for sales growth and margin sustainability, compounded by soft consumption in snacks and potential impacts from labor shortages and rising labor costs.