Conagra Brands (CAG) Q1 2026 Financial Results Summary
CHICAGO, October 1, 2025 — Today Conagra Brands, Inc. (NYSE: CAG) reported results for the first quarter of fiscal year 2026, which ended on August 24, 2025. All comparisons are against the prior year fiscal period, unless otherwise noted.
Financial Highlights
- Net Sales and Organic Growth
- Reported net sales decreased 5.8% to $2.6 billion.
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Organic net sales decreased 0.6%.
- Price/mix positively impacted sales by 0.6%.
- Volume decreased by 1.2%.
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Profit Margins
- Reported operating margin was 13.2%, down 118 basis points from the previous year.
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Adjusted operating margin stood at 11.8%, down 244 basis points year-over-year.
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Earnings Per Share (EPS)
- Reported diluted EPS was $0.34, reflecting a 64.9% decrease year-over-year.
- Adjusted EPS was $0.39, representing a 26.4% decrease.
Segment Performances
- Grocery & Snacks
- Net sales decreased 8.7% to $1.1 billion.
- M&A impact: -7.7%.
- Organic net sales decreased by 1.0%.
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Operating profit increased by 5.0% to $262 million.
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Refrigerated & Frozen
- Net sales decreased by 0.9% to $1.1 billion.
- Organic net sales increased by 0.2%.
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Operating profit decreased by 35.8% to $113 million.
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International
- Net sales declined by 18.0% to $212 million.
- Organic net sales decreased by 3.5%.
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Operating profit increased by 11.2% to $37 million.
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Foodservice
- Net sales fell 0.8% to $264 million.
- Organic net sales increased by 0.2%.
- Operating profit decreased 21.1% to $28 million.
Expenses and Net Income
- Gross profit decreased 13.4% to $641 million.
- Adjusted gross profit declined 11.3% to $644 million.
- SG&A expenses increased slightly by 0.1% to $336 million.
- Net income attributable to Conagra Brands decreased 64.8% to $165 million.
- Adjusted net income decreased 25.1% to $189 million.
Cash Flow and Debt
- Net cash flows from operating activities were $121 million, down 55.1% from the prior year.
- Capital expenditures increased 10.4% year-over-year to $147 million.
- Free cash flow decreased to $(26) million, a drop from $135.6 million in the previous year.
- The company ended the quarter with net debt of $7.6 billion, a 12.3% decrease year-over-year.
Dividends and Share Repurchase
- Conagra Brands declared a quarterly dividend of $0.35 per share.
- $15 million in share repurchases occurred during the first quarter.
Guidance
- The company is reaffirming its fiscal 2026 guidance, which includes:
- Organic net sales growth of (1)% to 1%.
- Adjusted operating margin between ~11.0% and ~11.5%.
- Adjusted EPS between $1.70 and $1.85.
Conclusion
Conagra Brands reported challenging financial results for Q1 of fiscal 2026, marked by declines in net sales, reduced profit margins, and significant decreases in net income and earnings per share compared to the prior year. Despite these results, the company is maintaining its guidance for the fiscal year.
Here are the extracted tables in HTML format:
Conagra Brands, Inc. Consolidated Statements of Earnings (in millions) (unaudited)
| FIRST QUARTER | |||
|---|---|---|---|
| Thirteen Weeks Ended August 24, 2025 | Thirteen Weeks Ended August 25, 2024 | Percent Change | |
| Net sales | $2,632.6 | $2,794.9 | (5.8)% |
| Cost of goods sold | $1,992.0 | $2,055.6 | (3.1)% |
| Gross profit | $640.6 | $739.3 | (13.4)% |
| Selling, general and administrative expenses | $335.6 | $335.4 | 0.1% |
| Loss (gain) on divestitures | $(42.4) | $2.3 | N/A |
| Operating profit | $347.4 | $401.6 | (13.5)% |
| Pension and postretirement non-service income | $6.1 | $3.1 | 95.4% |
| Interest expense, net | $93.8 | $105.8 | (11.4)% |
| Equity method investment earnings | $29.4 | $29.1 | 1.0% |
| Income before income taxes | $289.1 | $328.0 | (11.9)% |
| Income tax expense (benefit) | $124.6 | $(138.9) | N/A |
| Net income | $164.5 | $466.9 | (64.8)% |
| Less: Net income attributable to noncontrolling interests | $— | $0.1 | (100.0)% |
| Net income attributable to Conagra Brands, Inc. | $164.5 | $466.8 | (64.8)% |
| Earnings per share – basic | |||
| Net income attributable to Conagra Brands, Inc. | $0.34 | $0.97 | (64.9)% |
| Basic weighted average shares outstanding | 478.7 | 478.8 | (0.0)% |
| Earnings per share – diluted | |||
| Net income attributable to Conagra Brands, Inc. | $0.34 | $0.97 | (64.9)% |
| Diluted weighted average shares outstanding | 479.6 | 480.3 | (0.1)% |
Conagra Brands, Inc. Consolidated Balance Sheets (in millions) (unaudited)
| August 24, 2025 | May 25, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $698.1 | $68.0 |
| Receivables, less allowance for doubtful accounts of $4.2 and $3.6 | $756.5 | $770.0 |
| Inventories | $2,258.2 | $2,048.3 |
| Prepaid expenses and other current assets | $127.3 | $90.6 |
| Current assets held for sale | $— | $94.1 |
| Total current assets | $3,840.1 | $3,071.0 |
| Property, plant and equipment, net | $2,815.8 | $2,835.9 |
| Goodwill | $10,501.6 | $10,501.9 |
| Brands, trademarks and other intangibles, net | $2,410.2 | $2,421.1 |
| Other assets | $1,579.5 | $1,571.0 |
| Noncurrent assets held for sale | $25.6 | $533.0 |
| $21,172.8 | $20,933.9 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities | ||
| Notes payable | $41.5 | $804.7 |
| Current installments of long-term debt | $1,015.7 | $1,028.8 |
| Accounts and other payables | $1,532.5 | $1,590.1 |
| Accrued payroll | $113.5 | $146.0 |
| Other accrued liabilities | $926.4 | $744.7 |
| Current liabilities held for sale | $— | $2.7 |
| Total current liabilities | $3,629.6 | $4,317.0 |
| Senior long-term debt, excluding current installments | $7,222.6 | $6,234.1 |
| Deferred income taxes | $810.6 | $810.3 |
| Other noncurrent liabilities | $594.2 | $639.6 |
| Noncurrent liabilities held for sale | $— | $0.2 |
| Total stockholders’ equity | $8,915.8 | $8,932.7 |
| $21,172.8 | $20,933.9 |
