CAG · Conagra Brands, Inc.

Conagra Brands delivered third quarter fiscal 2026 results showing a return to organic net sales growth of 2.4%, driven by 1.9% price/mix improvement and 0.5% volume increase, despite reported net sales declining 1.9% to $2.8 billion due to 4.8% M&A impact partially offset by favorable foreign exchange. Gross margins contracted with reported gross margin at 23.6% (down 141 bps) and adjusted at 23.7% (down 112 bps), as cost of goods sold inflation, unfavorable operating leverage, and lost profit from divestitures outweighed higher organic sales and productivity gains. Adjusted operating margin held at 10.6%, but adjusted EPS fell 23.5% to $0.39 amid these pressures. Segment performance was mixed: Grocery & Snacks organic sales rose 1.8% on snacks strength despite volume softness in canned products; Refrigerated & Frozen grew organic sales 3.6% with 3.9% volume recovery post-supply issues; Foodservice organic up 3.6%; International organic down 1.2%. CEO Sean Connolly highlighted upward inflection in Frozen and Snacks, volume share gains in key categories like frozen meals and meat snacks, and over-delivery on free cash flow conversion and debt reduction to $7.3 billion net debt (3.83x leverage). The company narrowed fiscal 2026 guidance to organic net sales at the -1% to 1% midpoint, adjusted operating margin at the ~11.0%-11.5% high end, and adjusted EPS at the $1.70 low end, with updated adjusted equity earnings at ~$140 million and ~7% COGS inflation expected.