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Campbell's Q3 sees margin squeeze and weak sales despite 7% dividend yield, shares fair but not a buy.

Company Fundamentals
08 Jun 2026
Seeking Alpha
View Source
Bearish
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The Campbell's Company reported Q3 earnings with EPS of $0.50 and a 4% drop in organic sales, while EBIT margins fell 300 basis points to 11.6%. Although the Rao’s brand is gaining market share, the Snacks segment struggles with volume and margin pressures, worsened by trends linked to GLP-1 drugs. The company’s high debt level at 3.6x leverage limits share buybacks. Trading at 10 times forward earnings, Campbell's shares appear fairly valued but do not present a strong buying opportunity amid weak consumer demand and margin challenges.

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