The development: Consumers are tightening their belts, which is leading them to cook at home at the highest rates since the pandemic, Campbell’s CEO Mick Beekhuizen said during the company’s earnings call.

• They’re also favoring ingredients that help them stretch their food budgets amid economic uncertainty. That trend provided a tailwind for the company’s meals and beverages segment, which includes condensed cooking soups, broth, and Italian sauces. That unit outpaced category consumption and grew dollar share by 0.4 points.
• Conversely, the challenging economic environment acted as a headwind for discretionary snacks, such as crackers and chips. Still, Campbell’s noted a nuanced consumer mindset: While value remains critical, consumers are willing to splurge on “better-for-you” products—provided the benefits are clear and compelling.

The overall picture: Campbell’s beat analysts’ top and bottom line expectations, despite the challenging environment.

• Net sales were $2.48 billion, up 4.5% YoY, and ahead of the $2.43 billion analysts’ expected.
• Adjusted EPS was 73 cents, down about 3%, but outpacing the 66 cents expected.

The company reaffirmed its full-year outlook, excluding the impact of tariffs, guiding to:

• Net sales growth of 6% to 8%
• Adjusted EPS decline of 1% to 4%

To mitigate tariff-related pressures, Campbell’s is actively managing product costs and inventory, exploring alternative sourcing, and raising prices when necessary. Still, the company warned that if current tariffs remain in place, it expects to land at the low end of its outlook, with an anticipated 3 to 5 cent per-share headwind from tariff costs.

Our take: Campbell’s, like its CPG peers, is navigating a cost-conscious consumer environment that’s reshaping spending behavior. The company is pulling multiple levers to stay resilient—including brand extensions like the Limited Edition Milano Caramel Café au Lait and the return of the London Fog variety—demonstrating a keen understanding of both value-seeking and trend-driven shoppers.

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