Campbell Soup Company ($CPB) Stock: Spikes Above $35 After Strong Q3 Results

TLDR

Campbell Beats Q3 Estimates, Stock Spikes Above $35 Pre-Market Strong Q3 for $CPB: EPS Tops Forecast, Revenue Hits $2.48B Sovos Boosts Sales 4% as Campbell Reaffirms FY26 Outlook $CPB Gains Contracts Worth $3B+ as Q3 Results Impress Campbell Delivers Solid Earnings, Buys Back $125M in Stock

Campbell Soup Company ($CPB) recorded a notable price movement following the release of its third-quarter results for fiscal 2025. The stock briefly spiked above the $35 mark in pre-market trading before settling at $34.28 by the session’s close. This marks a modest 0.21% decline over the past five days but reflects positive investor sentiment triggered by strong quarterly earnings.

Campbell Soup Company ($CPB)

The company posted adjusted earnings per share (EPS) of $0.73, beating analyst expectations. Revenue reached $2.48 billion, supported by the recent Sovos Brands acquisition, which contributed to a 4% growth in net sales. However, impairment charges slightly weighed on GAAP net income, which totaled $66 million for the quarter.

Key Financial Metrics and Outlook

Campbell’s quarterly results underline steady performance amid broader market fluctuations. Adjusted EBITDA stood at $157 million, representing 8.4% of total revenues. While the company did not significantly increase its market share, the growth in revenue and stable margin performance have provided stability to its financial base. Net bookings for the quarter came in at $2.4 billion, yielding a book-to-bill ratio of 1.3, suggesting healthy demand pipelines.

The company also reaffirmed its fiscal year 2026 guidance. Management anticipates revenue between $7.60 billion and $7.75 billion, with adjusted diluted EPS projected in the range of $9.10 to $9.30. The guidance reflects confidence in operational strategies and ongoing integrations, particularly after the acquisition of Sovos Brands.

Capital Allocation and Strategic Contracts

During the quarter, Campbell deployed $152 million in capital, with $125 million directed toward share repurchases and $19 million distributed as dividends. The company also declared a quarterly dividend of $0.37 per share, payable on July 25, 2025.

Campbell's, $CPB, Q3-25. Results:
🟢 +2.8% Pre-Market

📊 Adj. EPS: $0.73 🟢
💰 Revenue: $2.48B 🟢
📈 Net Income: $66M
🔎 Sovos Brands acquisition helped drive 4% sales growth, but impairment charges weighed on GAAP earnings. pic.twitter.com/irMfJNWDhz

— EarningsTime (@Earnings_Time) June 2, 2025

On the strategic front, Campbell’s subsidiary engagements contributed to securing new and recompete contracts. These included a $1.8 billion agreement with the U.S. Army for software lifecycle services, a $327 million contract with the Pension Benefit Guaranty Corporation for IT services, and $300 million in awards across the space and intelligence sectors.

Additional contracts, such as the $547 million extension with the U.S. Department of State for IT support, were awarded after the quarter closed and are expected to bolster revenue streams in future periods further.

Future Outlook

The positive Q3 earnings and reaffirmed guidance have added near-term confidence to Campbell’s outlook. The upward movement of the $CPB stock in pre-market trading reflects market approval of the company’s financial and operational direction.

 

The post Campbell Soup Company ($CPB) Stock: Spikes Above $35 After Strong Q3 Results appeared first on CoinCentral.