Campbell’s sees FY26 gross tariffs 4% of COPS

The company’s fiscal 2026 guidance reflects the following underlying assumptions: The impact of the divestitures of Pop Secret and noosa is estimated to reduce reported net sales and adjusted EBIT by 1% and to be dilutive by 4c to adjusted EPS in fiscal 2026. Organic Net Sales (1)% to 1% reflecting, among other things, continued momentum in Meals & Beverages and stabilization in Snacks in the second half of the year at the midpoint of the range, with modest positive net price contribution compared to fiscal 2025. Adjusted EBIT of (13)% to (9)% and adjusted EPS of (18)% to (12)% reflecting the impact of divestitures. On a comparable 52-week basis and excluding the impact of divestitures as noted above, the company expects: Approximately two-thirds of the year-over-year decline in fiscal 2026 adjusted EPS guidance at the midpoint of the range to be attributable to the estimated net tariff impact. Gross tariffs are projected at approximately 4% of cost of products sold with actions in place to mitigate approximately 60% of the tariff impact in fiscal 2026. The remaining one-third to be driven by year-over-year changes in the base business reflecting the aforementioned topline assumptions, an increased marketing and selling investment in the range of 9% to 10% of net sales and a normalization of the certain benefits realized in fiscal 2025, including a return to targeted payout levels of incentive compensation expense. Other key assumptions: Low-single digit core inflation excluding the impact of tariffs; Productivity improvements including tariff mitigation of approximately 5% of COPS; Enterprise cost savings of approximately $70M; Adjusted effective tax rate of approximately 24%.