Campbell's (CPB) is heading into a difficult fiscal 2027 as weakening demand, pressure in snacks, higher costs and continued reinvestment weigh on earnings, though lower fuel costs and recent tariff developments may offer some relief, UBS Securities said Thursday in a report.

UBS cut its fiscal 2027 earnings estimate to $1.72 a share from $1.86, below the Visible Alpha consensus of $1.86, citing softer consumption trends and inflation that may remain near the high end of Campbell's mid-single-digit forecast.

UBS expects trends in Campbell's meals and beverages segment to look similar to fiscal 2026, while snacks could stay under pressure, especially if the company raises prices to protect profitability.

Inflation may stay elevated, and added investment along with higher incentive-compensation costs could lead to a meaningful drop in operating profit next year, the report said.

Fiscal Q4 and full-year results are due Sept. 3.

UBS raised its price target on Campbell's stock to $18 from $17 and maintained its sell rating.

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