Packaged food company Campbell's (NASDAQ: CPB) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 1.2% year on year to $2.32 billion. Its non-GAAP profit of $0.62 per share was 8.8% above analysts’ consensus estimates.
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Campbell's (CPB) Q2 CY2025 Highlights:
- Revenue: $2.32 billion vs analyst estimates of $2.33 billion (1.2% year-on-year growth, in line)
- Adjusted EPS: $0.62 vs analyst estimates of $0.57 (8.8% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.47 at the midpoint, missing analyst estimates by 6.5%
- Operating Margin: 11.6%, up from 3.4% in the same quarter last year
- Free Cash Flow Margin: 5.6%, similar to the same quarter last year
- Organic Revenue fell 3% year on year vs analyst estimates of 2.7% declines (34.4 basis point miss)
- Sales Volumes fell 4% year on year (1% in the same quarter last year)
- Market Capitalization: $9.38 billion
CAMDEN, N.J.--(BUSINESS WIRE)--The Campbell's Company (NASDAQ: CPB) today announced that the company’s Board of Directors has elected Mary Alice Dorrance Malone Jr. as a member of the Board. Malone, 42, is the Founder and Chief Brand Director of Malone Souliers, an international luxury fashion brand. “We are pleased to welcome Mary Alice to Campbell’s Board of Directors,” said Keith R. McLoughlin, Chair of the Board.
Company Overview
With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.
With $10.25 billion in revenue over the past 12 months, Campbell's is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when your existing brands have penetrated most of the market. To expand meaningfully, Campbell's likely needs to tweak its prices, innovate with new products, or enter new markets.
As you can see below, Campbell’s sales grew at a mediocre 6.2% compounded annual growth rate over the last three years as consumers bought less of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, Campbell's grew its revenue by 1.2% year on year, and its $2.32 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to decline by 2.8% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products will see some demand headwinds.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
To analyze whether Campbell's generated its growth (or lack thereof) from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.
Over the last two years, Campbell’s average quarterly sales volumes have shrunk by 1%. This isn’t ideal for a consumer staples company, where demand is typically stable.
In Campbell’s Q2 2025, sales volumes dropped 4% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.
Key Takeaways from Campbell’s Q2 Results
It was good to see Campbell's beat analysts’ EPS expectations this quarter despite in-line revenue. On the other hand, its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 1.2% to $31.82 immediately following the results.
Big picture, is Campbell's a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
