Campbell's Co. (NASDAQ:CPB) posted quarterly net sales that topped expectations on Tuesday, supported by strength in its meals and beverages division, though shares fell more than 4% intra-day as investors weighed softness in the snacks business and ongoing tariff-related pressures.

The company recently committed to removing synthetic dyes from its food and beverage products beginning in the second half of the fiscal year, citing health-conscious consumer trends and aligning with Health Secretary Robert F. Kennedy Jr.'s “Make America Healthy Again” initiative. Campbell's said it would replace artificial colors with natural alternatives sourced from ingredients such as annatto and purple carrot juice.

First-quarter net sales came in at $2.68 billion, slightly ahead of the $2.66 billion consensus. Adjusted EPS was $0.77, topping estimates of $0.73. Pricing and allowances within the meals and beverages division increased 1%.

Campbell's said it planned to raise prices and introduce cost-saving measures to offset roughly 60% of the impact from new U.S. tariffs, which were expected to account for about 4% of its fiscal 2026 cost of goods sold. Despite broader economic uncertainty, recent data suggested U.S. consumers remained relatively resilient.

The company reaffirmed its fiscal 2026 outlook, projecting organic net sales between a 1% decline and a 1% increase and forecasting a 12% to 18% drop in EPS to a range of $2.40 to $2.55.