Campbell Soup Co. left its full-year outlook unchanged on Tuesday after reporting better-than-expected earnings for its first fiscal quarter, even as consumers continue to push back against higher prices on its soups, snacks, and condiments.

The company’s stock—already down roughly 28% since the start of the year—slipped another 6.2% in afternoon trading.

Major packaged-food manufacturers, including Campbell, Kraft Heinz and General Mills, have implemented multiple rounds of price increases to manage rising input costs, especially for steel and aluminium used in canned goods. Those hikes have encouraged budget-conscious shoppers to switch to lower-priced store brands.

On a call with analysts, CEO Mick Beekhuizen said recent pricing actions were necessary to counter inflation tied to tariffs, but noted the company is trying to balance those increases carefully. “We recognise the need to deliver strong value, particularly as we head into the key soup season,” he said.

Campbell’s total volumes slipped 3% during the quarter across both its meals and beverages division and its snacks business. Consumer Edge analyst Connor Rattigan said the results underscore ongoing challenges for the broader food sector, pointing to continued softness in organic volume.

Still, Beekhuizen said the company is benefiting from sustained interest in cooking at home, which continues to lift several of its brands.

Campbell reaffirmed its guidance for fiscal 2026, projecting net sales to be flat to down as much as 2%, and maintaining its adjusted earnings forecast of $2.40 to $2.55 per share.

For the quarter ending Nov. 2, revenue fell about 3% to $2.68 billion—roughly matching analysts’ expectations—while adjusted earnings of 77 cents per share exceeded the consensus estimate of 73 cents, according to LSEG data.

The company also revealed plans to purchase a 49% stake in La Regina SPA, the private Italian partner behind Rao’s sauces, for $286 million. The move follows Campbell’s acquisition of Sovos Brands, the parent of Rao’s Homemade, for $2.33 billion last year. The new deal is expected to close in the second half of fiscal 2026.