Campbell’s shares trade at just 11.0 times estimated 2026. Meanwhile, a $2.7 billion acquisition introduced the high-growth Rao’s ecosystem into the product mix. This brand generates approximately $1 billion in annualized revenue.
The December 2025 announcement to acquire a 49% stake in Rao’s manufacturer for an additional $286 million represents intelligent vertical integration. This should protect premium profit margins while enabling innovation. For investors concerned about legacy soup and snacks facing secular decline, the company now possesses a strong growth asset.
CAMPBELL’S CO. (Nasdaq symbol CPB; www.thecampbellscompany.com) makes soups, sauces and snack foods.
Note—The company recently changed its name from Campbell Soup Co. to reflect its broader array of products, including soups, sauces and snack foods. It also transferred its stock listing from the New York Stock Exchange to Nasdaq (the shares continue to trade under the “CPB” symbol).
Campbell’s has now agreed to acquire a 49% stake in La Regina, the privately held business that makes its Rao’s cooking sauces. It will pay $286 million when it completes the purchase in mid-2026. It also has an option to buy the rest of the Italian food manufacturer.
The transaction comes two years after Campbell’s announced the $2.7 billion acquisition of U.S. group Sovos Brands, which gave Campbells’ ownership of Rao.
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Campbell’s efficiency boost should stabilize earnings and tariff impacts
Campbell’s continues to benefit as more people eat at home instead of restaurants due to the current economic uncertainty. That has helped offset weaker demand for its snack products.
Meantime, though, the company has had to raise its selling prices in response to new tariffs on its food ingredients and packaging materials like steel and aluminum. That is hurting its sales volumes.
In its fiscal 2026 first quarter, ended November 2, 2025, sales fell 3.4%, to $2.68 billion from $2.77 billion a year earlier. Even so, that topped the $2.65 billion consensus forecast. If you exclude businesses that Campbell’s bought and sold, sales declined 1% in the latest quarter.
Without unusual items, the company’s earnings fell 13.5%, to $0.77 a share (or a total of $230 million) from $0.89 a share (or $267 million). That still beat the consensus estimate of $0.74 a share.
Campbell’s continues to improve its efficiency, which will help it offset the impact of tariffs. It realized $15 million in savings in the latest quarter and expects annual cost savings will total $375 million by the end of fiscal 2028.
For all of fiscal 2026, Campbell’s earnings will probably decline by 12% to 18%, to between $2.40 and $2.55 a share. The stock trades at 11.0 times the midpoint of that range. That’s a reasonable multiple considering the company’s strong brands and market share. The $1.56 dividend looks secure and yields 5.8%.
Recommendation in Wall Street Stock Forecaster: Campbell’s Co. is a buy for long-term gains.
