Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the first quarter of fiscal 2026, with revenues estimated at $2.61 billion, reflecting a 6.5% decrease from the previous year [1][10] - The earnings consensus has dropped to 33 cents per share, indicating a 37.7% decline compared to the same quarter last year [2][10] Group 1: Financial Performance Expectations - The consensus estimate for revenues is $2.61 billion, which represents a 6.5% drop from the prior-year quarter [1][10] - Earnings per share are projected at 33 cents, down 37.7% from the year-ago quarter [2][10] - The company has a negative trailing four-quarter earnings surprise of 3.6% on average [2] Group 2: Challenges Impacting Performance - Conagra Brands faced significant challenges in fiscal 2025, including persistent inflation, foreign exchange headwinds, and supply constraints, which are expected to continue affecting results in the first quarter of fiscal 2026 [3] - Elevated costs in raw materials, packaging, labor, and logistics, particularly for proteins and tinplate steel due to tariffs, are likely to pressure margins [4] - A projected 300-basis-point contraction in adjusted gross margin is anticipated for the quarter [4] Group 3: Segment Performance - The International segment is expected to see a 7.6% decline in sales due to volatile currency movements, volume softness, and competitive pressures [5] - Despite challenges, Conagra's strengths in innovation and brand support, particularly in frozen meals and snacks, continue to show positive consumer response [6] Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Conagra Brands, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of +6.95% [7]