Lamb Weston beats Q3 revenue estimates on volume growth, raises sales outlook

Lamb Weston Holdings

01/04/2026 13:40

Overview

Frozen potato supplier's fiscal Q3 revenue rose 3%, beating analyst expectations

Adjusted EPS and adjusted EBITDA for Q3 beat analyst expectations, despite year-over-year declines

Company raised midpoint of fiscal 2026 sales and EBITDA outlook, cut capital expenditure forecast

Outlook

Lamb Weston raises FY 2026 net sales outlook to $6.45 bln-$6.55 bln

Company now sees FY 2026 adjusted EBITDA at $1.08 bln-$1.14 bln

Company cuts expected FY 2026 capital expenditures to about $400 mln

Result Drivers

NORTH AMERICA VOLUME GAINS - Volume growth was driven by customer wins, share gains and strong retention in North America

PRICE/MIX DECLINE - A 7% decline in price/mix offset volume gains, reflecting price and trade support for customers and a shift to value-oriented channels and brands

INTERNATIONAL PRESSURE - Softer demand and increased competition in key international markets, especially EMEA, led to lower sales and underutilized production facilities

Company press release: ID:nBw44q6k0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$1.56 bln
$1.49 bln (10 Analysts)
Q3 Adjusted EPS
Beat
$0.72
$0.61 (9 Analysts)
Q3 EPS
$0.39
Q3 Adjusted Net Income
Beat
$100 mln
$84.14 mln (7 Analysts)
Q3 Net Income
$54 mln
Q3 Adjusted EBITDA
Beat
$271.70 mln
$257.15 mln (10 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and no "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 Lamb Weston Holdings Inc is $52.00, about 23% above its March 31 closing price of $42.26

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 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.)