CPB Stock Slips Premarket After Earnings – But Retail Still Sees Campbell’s As A 'Defensive Play'

Bank of America slashed its price target on CPB from $20 to $18.

• Campbell’s Q3 revenue fell 4% to about $2.4 billion, and adjusted EPS dropped to $0.50.
• BofA cut its 2027 EPS forecast to $1.77 from $1.95, citing higher costs and a weaker profit outlook ahead. 
• The company reaffirmed its fiscal 2026 outlook. 

The Campbell’s Company (CPB) stock slipped in Tuesday’s premarket after weaker sales and lower adjusted earnings for its fiscal third quarter (Q3), as persistent inflation and softer consumer demand continued to pressure performance across parts of its business.

CPB’s Q3 Financial Performance 

The Camden, New Jersey-based company said revenue for Q3 declined 4% year-on-year to approximately $2.4 billion, slightly beating the analysts’ consensus estimate of $2.38 billion, according to Fiscal AI data. 

Adjusted earnings per share came in at $0.50, down from $0.73 per share last year, beating the Street’s estimate of $0.48. Adjusted EBIT dropped 24% to $274 million as rising input costs and supply chain expenses weighed on profitability.

“Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds,” said Mick Beekhuizen, President and CEO, Campbell’s.

The company reaffirmed its fiscal 2026 outlook, projecting an organic sales decline of 1% to 2%, and adjusted earnings per share between $2.15 and $2.25.

Bank Of America Cuts CPB’s Price Target 

Following the earnings, Bank of America trimmed its price target on CPB to $18 from $20 while maintaining an Underperform rating, implying a 16% downside to the stock’s last closing price. 

The firm also reduced its fiscal 2027 adjusted earnings per share forecast to $1.77 from $1.95, pointing to a tougher cost landscape that could weigh on profitability in the coming years. 

CPB Retail Traders’ View 

On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bearish’ territory the previous day, with a 5,000% surge in message volume over the last 24 hours. 

A user said, “this is a good defensive play against days like last Friday. It sounds like they have some internal issues within the company. Id still have this long next to other consumer staples in my portfolio.”

Another user said, “Worth $35 and you get an 8% dividend. Right now, they are paying out $464M in divi's and generating about $1B in FCF. They could easily buy back 30M shares per year or 10% of the company per year.”

Another user said, “did you know campbells has one of the largest solar arrays powering their facility to keep them from harm from rising energy costs? They also happen to have one of the largest indoor growing facilities in the US to defend from extreme weather patterns.”

CPB stock has declined over 22% year-to-date. 

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