EL7.AI
StocksMediumUpdated•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

Campbell's Cuts Dividend 36% to $0.25 to Accelerate Debt Reduction

Key Facts

1Campbell's cut its quarterly dividend 36% to $0.25 per share from $0.39.
2The decision is the first dividend cut since 2001, a 25-year interval.
3Adjusted gross margin fell 190 basis points to 28.6% in the fourth quarter.
4The company expects fiscal 2027 adjusted EPS of $1.65 to $1.80, down 17% to 24%.

The Campbell's Company, listed under CPB, approved a 36% cut in its quarterly cash dividend to $0.25 per share from $0.39. That lowers the annualized payout to $1.00 from $1.56, a move the company said would accelerate debt reduction.

The decision is Campbell's first dividend cut since 2001, a 25-year interval. The new dividend is payable on November 2, 2026, to shareholders of record at the close of business on October 1, 2026.

The cut accompanied weak results for the fourth quarter ended August 2, 2026. Net sales fell 8% to $2.137 billion, while organic sales declined 1% after excluding acquisitions, divestitures, currency movements and differences in the number of fiscal weeks.

Reported gross margin fell 310 basis points to 27.3%, while adjusted gross margin declined 190 basis points to 28.6%. Campbell's attributed the pressure mainly to cost inflation and higher supply-chain expenses, including tariffs, partly offset by productivity gains.

The company posted a diluted loss of $0.23 per share for the quarter, compared with earnings of $0.48 a year earlier. Adjusted earnings per share fell 37% to $0.39, while adjusted operating profit declined 25% to $242 million.

By segment, Meals & Beverages sales fell 4% as reported in the quarter but rose 3% organically after neutralizing the extra week in the comparison period. Snacks organic sales declined 6%, while segment operating earnings fell 34%.

For fiscal 2026, net sales decreased 5% to $9.744 billion and adjusted operating profit fell 21% to $1.181 billion. Cash flow from operations declined to $1.0 billion from $1.1 billion in the prior year.

Campbell's is targeting $500 million in total savings by fiscal 2030 to protect margins and support investment. For fiscal 2027, it expects both net and organic sales to decline 2% to 4%, with adjusted earnings per share down 17% to 24% to a range of $1.65 to $1.80 amid continued elevated inflation.