Campbell’s forecasts muted fiscal 2026 profit on tariff pressures

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(Reuters) -Goldfish crackers maker Campbell’s Co on Wednesday forecast fiscal 2026 profit below Wall Street estimates, as tariff pressures are set to ramp up input costs, even as it contends with sluggish demand for snacks.

The New Jersey-based company expects tariffs to account for roughly 4% of its cost of goods sold, signaling added challenges for consumer companies from the Trump administration’s trade policies as they navigate tepid demand from inflation-weary customers.

Campbell’s shares, down 25% this year, rose 1.7% in premarket trading following the announcement.

The company projected fiscal 2026 net sales to remain flat or decline up to 2%, assuming continued tariff pressures, compared to a 2.4% fall expected by analysts.

For annual adjusted earnings per share, Campbell’s forecasts a decline of up to 18% to between $2.40 and $2.55 — well below the analyst consensus of $2.63, according to LSEG data.

Rivals including Kraft Heinz and Conagra have similarly reported softer demand for mainstream brands in recent quarters.

“Consumers continue to be increasingly deliberate in their food choices with a focus on premiumization, flavor exploration, health and wellness and cooking at home,” CEO Mick Beekhuizen said.

The company reported mixed fourth-quarter results, with net sales rising 1% to $2.32 billion, missing analysts’ average expectation of $2.33 billion, as per data compiled by LSEG.

Its adjusted profit of 62 cents per share, however, beat analyst estimates of 56 cents.

Campbell’s previously faced higher export costs for soup shipped to Canada, but expects some relief after Canada announced it would remove many retaliatory import tariffs on U.S. goods. A recent U.S.-EU trade agreement also set tariffs at 15% on most EU products — lower than initially proposed rates.

(Reporting by Anshi Sancheti and Savyata Mishra in Bengaluru; Editing by Tasim Zahid)