Campbell’s Tops Earnings Forecast as Cost-Conscious Consumers Embrace Home Cooking
Camden, NJ, September 3, 2025 — Campbell Soup Company (NYSE: CPB) has exceeded Wall Street’s earnings expectations for the third quarter of 2025, fueled by a persistent trend of cost-conscious consumers opting to cook at home. The company reported a robust performance in its Meals & Beverages segment, driven by strong demand for pantry staples like condensed soups, broths, and sauces, particularly its popular Rao’s brand.
Strong Performance in Meals & Beverages
Campbell’s Meals & Beverages division saw a 15% sales increase, reaching $1.5 billion in Q3 2025, compared to the same period last year. This growth reflects a broader shift in consumer behavior, with home cooking reaching its highest level since early 2020. As inflation continues to squeeze household budgets, consumers are turning to affordable, versatile products to prepare meals at home, boosting sales of Campbell’s iconic soups and cooking sauces.
“Families are prioritizing value and convenience, and our portfolio is well-positioned to meet those needs,” said Mark Chan, Campbell’s CEO, during the earnings call. “Our brands, from Campbell’s condensed soups to Rao’s sauces, are resonating with consumers looking to stretch their dollars without sacrificing quality.”
Snacks Division Faces Headwinds
While the Meals & Beverages segment thrived, Campbell’s snacks division, which includes brands like Goldfish and Cape Cod, experienced a 5% sales decline. Analysts attribute this drop to selective consumer spending, as shoppers prioritize essential grocery items over discretionary snacks amid ongoing inflationary pressures. Despite the downturn, Campbell’s remains optimistic about its snacks portfolio, citing innovation and targetedXM-COLLECTEDXM new product launches as potential growth drivers.
Navigating Tariff Challenges
Campbell’s maintained its fiscal 2025 net sales growth forecast of 6-8%, but signaled that adjusted earnings per share are expected to land at the lower end of the $2.95-$3.05 range. The company highlighted tariff-related costs, estimated at 3-5 cents per share, as a key factor impacting profitability. To address these challenges, Campbell’s is exploring strategic pricing adjustments and alternative sourcing options to mitigate the impact of tariffs on raw materials and production costs.
“We’re proactively managing these external pressures to protect our margins while continuing to deliver value to our consumers,” said CFO Diane Patel. The company’s ability to adapt to economic headwinds has been a cornerstone of its resilience in a volatile market.
Looking Ahead
Campbell’s strong Q3 performance underscores its ability to capitalize on evolving consumer trends. The company’s focus on expanding its portfolio of convenient, high-quality meal solutions positions it well for continued growth. Analysts expect Campbell’s to maintain its momentum, particularly in the Meals & Beverages segment, as home cooking remains a staple of household budgets.
The company’s stock rose 2.3% in pre-market trading following the earnings release, reflecting investor confidence in Campbell’s strategic direction. As consumers continue to prioritize affordability and convenience, Campbell Soup Company is poised to remain a kitchen staple in homes across the nation.