Campbell Soup Company reported QQ1 2026 results with modest organic net sales decline and a meaningful hit from elevated input costs and tariffs, offset in part by price realization and ongoing cost savings. Organic net sales were down 1%, driven by a 2% consumption decline and a 1% overall in-market consumption drop, while leadership brands continued to hold share for the ninth consecutive quarter. Adjusted EBIT declined 11% to $383 million, and adjusted EPS fell 13% to $0.77, reflecting cost pressures and tariff headwinds that management expects to persist into the year. Management reaffirmed full-year guidance and highlighted tariff headwinds (~4% of COGS) with an expectation to mitigate roughly 60% through inventory management, supplier collaboration, productivity, and selective pricing actions. The company continued to execute on productivity and cost-savings initiatives, delivering approximately $15 million of new savings in the quarter toward a $375 million 2028 target and cumulatively about $160 million to date. A key strategic development was the 49% acquisition of Rao’s La Regina to deepen Rails’ premium Italian sauces positioning, with an option to acquire the remaining 51% and a potential ~$600 million ultimate valuation. The deal is expected to be EPS-neutral in fiscal 2026 and should be accretive over the longer term as synergies materialize. In snacks, the firm signaled continued secular headwinds but also green shoots in categories like Pepperidge Farm cookies and Late July, with Goldfish restoration as a priority to restore growth. The balance sheet remains leveraged, with net debt to adjusted EBITDA at 3.7x and a cash position of roughly $168 million, alongside $1.4 billion of revolver capacity. The company reaffirmed its commitment to deleverage toward a 3x target while funding strategic investments and capital returns. Overall, near-term performance remains challenged by macro headwinds, but strategic actions (Rails/Rao's, Goldfish, cost savings, and in-market activations) are positioned to support mid-to-long-term profitability and cash generation.