Conagra Brands Q3 adjusted profit misses estimates

Conagra Brands

01/04/2026 12:44

Overview

U.S. packaged foods maker's fiscal Q3 revenue fell 1.9%

Adjusted EPS for fiscal Q3 missed analyst expectations, down 23.5% yr/yr

Company narrows FY26 guidance, sees adjusted EPS at low end of prior range

Outlook

Conagra narrows fiscal 2026 organic net sales change to midpoint of (1)% to 1% range

Company expects fiscal 2026 adjusted EPS of about $1.70, at low end of prior range

Result Drivers

ORGANIC SALES GROWTH - Organic net sales rose 2.4%, driven by a 1.9% price/mix increase and 0.5% volume growth, with gains in frozen meals, snacks, and other categories

COST INFLATION AND DIVESTITURES - Higher organic net sales and productivity gains were more than offset by cost of goods sold inflation, unfavorable operating leverage, and lost profit from divested businesses, weighing on adjusted gross profit and EPS

SEGMENT TRENDS - Frozen and Snacks businesses saw growth, while Grocery & Snacks volume declined due to inflation-driven pricing and elasticity impacts; Refrigerated & Frozen segment benefited from volume recovery after prior supply constraints

Company press release: ID:nPn36ZjMZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2,78 bln
$2.76 bln (13 Analysts)
Q3 Adjusted EPS
Miss
$0.39
$0.40 (14 Analysts)
Q3 EPS
$0.42
Q3 Adjusted Net Income
Miss
$188 mln
$195.04 mln (9 Analysts)
Q3 Net Income
$199.8 mln
Q3 Adjusted EBIT Margin
10.60%
Q3 Adjusted Gross Margin
23.70%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy."

Wall Street's median 12-month price target for Conagra Brands Inc is $18.50, about 17.7% above its March 31 closing price of $15.72

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)