Famed investor Jim Cramer says it’s hard to see Campbell’s (NASDAQ: CPB) Q2 earnings release and believe it’s still the great American company it once was.
On Wednesday, the canned food specialist posted 51 cents a share of earnings on a 5% sales decline to $2.56 billion – both below consensus.
Compounding the pain, its management lowered the 2026 outlook, now projecting a meaningful drop in adjusted EPS to about $2.2.
Following the post-earnings decline, Campbell stock is down 22% versus its year-to-date high, but Cramer contends even at the current price, the hand CPB is holding may be too weak to play.
Why Cramer is bearish on Campbell stock
The core of Campbell’s identity – its namesake soup – is showing signs of “structural erosion” that troubled Cramer.
In Q2, the company saw its largest decline in the US soup category, a segment the Mad Money host described as its “bread and butter”.
According to him, the release reveals a grim reality: consumers are increasingly pivoting away from traditional canned goods, resulting in pressure on organic net sales.
This isn’t just a temporary dip; it represents a failure in the very product line that built the brand.
Cramer lamented that the firm’s storied history in Philadelphia now feels like a relic – suggesting the “Museum [of soup terrines] may be worth more than CPB stock” at this point.
Why a swift recovery in CPB shares is unlikely
While soup was the core anchor, Campbell’s aggressive pivot into the snacks market was supposed to be its growth engine. Instead, it has become a primary source of investor heartburn.
Despite the high-profile acquisition of Snyder’s-Lance, the underperformance in snacks was really “terrible”, Cramer noted.
Even the inclusion of premium brands like Rao’s and Cape Cod hasn’t been enough to offset the broader rot.
“They bought high,” the former hedge fund manager added, pointing out that the management has been forced to suspend its share repurchase programme to focus on debt reduction.
This suspension is a massive red flag for Campbell shares – especially as competitors like PepsiCo manage to navigate the same difficult snack environment with much more dexterity.
How to play Campbell after Q2 earnings
The most damning part of the post-earnings autopsy was Cramer’s assessment of Campbell’s standing as an American institution.
“It’s very hard to read this and not think it’s not a great American company anymore; it’s a shame.”
The criticism extends to the firm’s leadership and its inability to capitalise on past opportunities, noting the “tenure is hard to look at” and the founding family missed their chance to sell at a much higher valuation.
Between terrible numbers and the suspension of buybacks, the narrative has shifted from defensive staple to a value trap.
For Cramer, the conclusion is clear: CPB shares are no longer the powerhouse they once were, and the “bad hand” they are holding makes a turnaround feel increasingly distant.
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