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    How Investors May Respond To Campbell's (CPB) Mounting Pressure On Volumes And Profitability

    Simply Wall St·12/25/2025 06:19:01
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    • In recent commentary, Campbell's reported that unit sales have been flat for two years and sales are projected to decline 2.3% over the next 12 months, while earnings per share have fallen even as revenue has grown.
    • This combination of weak volume trends and less profitable incremental sales points to mounting pressure on both demand and profitability across the business.
    • Next, we'll examine how flat unit sales and expected revenue softness may influence Campbell's existing investment narrative around efficiency and growth.

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    Campbell's Investment Narrative Recap

    For Campbell’s to make sense in a portfolio, you need to believe its pantry brands can convert stable shelf demand into reliable cash flows, even as volumes soften. The latest update of flat two year unit sales and an expected 2.3% sales decline keeps the spotlight on the core risk right now: weak demand and profitability pressure potentially limiting the payoff from cost savings and efficiency efforts in the near term.

    Against this backdrop, the recent Q1 FY2026 results, with sales of US$2,677 million and lower net income and EPS versus last year, tie directly into the same concern that incremental revenue is not translating into stronger per share earnings. This earnings pattern makes the existing cost savings and productivity narrative more contingent on whether Campbell’s can stabilize volumes without eroding margins further.

    Yet investors should be aware that persistent volume declines in key categories could...

    Read the full narrative on Campbell's (it's free!)

    Campbell's narrative projects $10.2 billion revenue and $868.6 million earnings by 2028. This requires a 0.0% yearly revenue decline and an earnings increase of about $266.6 million from $602.0 million today.

    Uncover how Campbell's forecasts yield a $33.84 fair value, a 21% upside to its current price.

    Exploring Other Perspectives

    CPB 1-Year Stock Price Chart
    CPB 1-Year Stock Price Chart

    Six members of the Simply Wall St Community currently estimate Campbell’s fair value between US$26 and about US$61, reflecting very different return expectations. You can weigh these views against the recent signs of flat volumes and softer sales, which point directly to the risk that demand trends may constrain how effectively Campbell’s can convert its efficiency plans into durable earnings growth.

    Explore 6 other fair value estimates on Campbell's - why the stock might be worth 7% less than the current price!

    Build Your Own Campbell's Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.