Campbell’s Co (NASDAQ:CPB) stock fell 1.85% (As on March 12, 11:27:31 AM UTC-4, Source: Google Finance) after the company cut its annual sales and profit forecasts, as the packaged food company expects demand to be weighed down by consumers’ shift toward cheaper alternatives alternatives amid rising input costs. Campbell’s price hikes in recent years, meant to protect margins from rising raw material costs, have dissuaded lower-income consumers, who increasingly prefer cheaper brands and store-label products as they tighten budgets. The company has been battling higher costs related to tariffs, especially in metals like aluminum and steel used for cans and packaging. Meanwhile, prices of beef, the key ingredient for its ready-to-eat soup, hit record highs in the U.S. as drought forced ranchers to shrink the cattle herd to its smallest size in 75 years.

Moreover, Adjusted EBIT decreased 24% to $282 million. Fiscal year-to-date cash flow from operations was $740 million; returned $263 million to shareholders including $237 million in dividends. January storm-related shipment delays and associated supply chain costs impacted net sales by approximately 1%, adjusted EBIT by approximately $14 million and adjusted EPS by approximately $0.04 per share in the quarter.

CPB in the second quarter of FY26 has reported the adjusted earnings per share of 51 cents, missing the analysts’ estimates for the adjusted earnings per share of 57 cents, according to data compiled by LSEG. The company had reported the adjusted revenue decline of 5 percent to $2.56 billion in the second quarter of FY26, missing the analysts’ estimates for revenue of $2.61 billion. Organic net sales, which exclude the impact from divestitures, decreased 3% to $2.6 billion primarily driven by lower volume/mix, with neutral net price realization. Adjusted gross profit decreased to $710 million from $815 million. Adjusted gross profit margin decreased 270 basis points to 27.7%.

Additionally, Cash flow from operations for the six months ended February 1, 2026 was $740 million, compared to $737 million in the prior-year. Capital expenditures year-to-date were $227 million compared to $211 million.

The company now expects fiscal 2026 organic net sales to fall between one per cent and two per cent, compared with its previous forecast of between a one per cent fall and one per cent rise. It also expects fiscal 2026 adjusted profit per share between US$2.15 and $2.25, lower than its previous forecast of $2.40 and $2.55.