Campbell Soup Co. announced that higher tariffs will weigh on its earnings outlook for fiscal 2026, projecting profits below Wall Street expectations.

The New Jersey-based company expects tariffs to add about 4% to its cost of goods sold next year. Management said roughly 60% of that burden will be offset through a mix of price increases and internal cost-cutting measures.

The tariff-related pressure underscores the challenges food manufacturers face under current U.S. trade policies, which come on top of slowing consumer demand as households pull back on spending. 

CEO Mick Beekhuizen noted that shoppers are becoming more selective and are shifting toward at-home meals, compounding the company’s margin concerns.

Campbell projects adjusted earnings per share to fall as much as 18%, landing between $2.40 and $2.55, short of analysts’ average estimate of $2.63, according to LSEG data. Net sales are expected to range from flat to a 2% decline, a slightly better outlook than the 2.4% drop forecast by analysts.

Shares of the Goldfish crackers maker still rose about 4% in early trading, as its revenue guidance came in stronger than anticipated, though tariff costs remain a key headwind for the year ahead.