Q1 FY26 Financial Performance - Organic net sales decreased by 0.6% to $2,611 million[58] - Adjusted gross margin decreased by 153 bps to 24.4%[58] - Adjusted operating margin decreased by 244 bps to 11.8%[58] - Adjusted EPS decreased by 26.4% to $0.39[58] Segment Performance - Grocery & Snacks net sales decreased by 1.0% to $1,080 million[61] - Refrigerated & Frozen net sales increased by 0.2% to $1,076 million[61] - International net sales decreased by 3.5% to $212 million[61] - Foodservice net sales increased by 0.2% to $265 million[61] Debt and Cash Flow - Net debt decreased from $8 billion to $7.6 billion[42] - Free cash flow was $(26) million, a decrease from $136 million[70] Outlook - The company reaffirms FY26 guidance for organic net sales growth of -1% to +1%[51] - The company reaffirms FY26 guidance for adjusted operating margin of approximately 11.0% to 11.5%[51] - The company reaffirms FY26 guidance for adjusted EPS of $1.70 to $1.85[51] Other Key Points - Total inflation is now expected in the low 7% range[48] - Capital expenditures are estimated at approximately $450 million for FY26[49]

Core Viewpoint - Walmart's stock experienced a nearly 3% decline due to negative sentiment in the retail sector following a downgrade of Target by Goldman Sachs, reflecting broader market caution [1][2]. Group 1: Market Reaction - Walmart's share price drop was influenced by a bearish research note on Target, a major competitor in the retail space [1]. - The decline in Walmart's stock was slightly steeper than the S&P 500's 2.2% dip, indicating a general lack of enthusiasm among investors for retail stocks [1]. Group 2: Sector Analysis - Goldman Sachs downgraded Target from a buy to a neutral rating, citing concerns over its reliance on discretionary products, which make up 53% of its 2024 product lineup [2][3]. - The downgrade of Target has caused investors to shy away from the retail sector, despite Walmart and other competitors being more focused on staple products [4]. Group 3: Economic Concerns - The retail industry is facing potential headwinds, particularly from tariffs affecting foreign manufacturers, which could lead to increased prices and reduced consumer spending if tariffs remain in place [5].

Q3 FY25 Performance - Conagra's Q3 organic net sales decreased by 5.2% to $2852 million compared to the previous year[40] - The adjusted gross margin was 24.8%, a decrease of 389 basis points year-over-year[40] - Adjusted operating margin was 12.7%, down 369 basis points compared to last year[40] - Adjusted EPS decreased by 26.1% to $0.51[40] Segment Performance - Grocery & Snacks net sales were $1245 million, a decrease of 3.9% organically[43] - Refrigerated & Frozen net sales were $1116 million, a decrease of 7.2% organically[43] - International net sales decreased by 1.2% organically to $224 million[43] - Foodservice net sales decreased by 6.3% organically to $256 million[43] Volume and Pricing - Total Conagra Brands volume decreased by 3.1%, while price/mix decreased by 2.1%[43] - Conagra Domestic Retail Consumption volume increased by 1.1%[9] FY25 Guidance - The company maintained its FY25 guidance, projecting organic net sales growth of approximately -2.0%[36] - Adjusted operating margin is expected to be around 14.4%[36] - Adjusted EPS is projected to be approximately $2.35[36]