Core Insights - Conagra Brands has experienced a 9.2% decline in share price over the past month, underperforming the S&P 500 [1][2] Financial Performance - For Q1 fiscal 2026, Conagra reported adjusted earnings per share (EPS) of 39 cents, exceeding the Zacks Consensus Estimate of 33 cents, but reflecting a 26.4% year-over-year decline [3][4] - The company generated net sales of $2,632.6 million, a 5.8% decrease year-over-year, yet surpassing the Zacks Consensus Estimate of $2,609 million [5] - Organic net sales decreased by 0.6%, with a 0.6% positive impact from price/mix offset by a 1.2% decline in volume [6] Segment Performance - Grocery & Snacks segment net sales were $1,079.6 million, down 8.7% year-over-year, impacted by a 7.7% adverse effect from M&A [9] - Refrigerated & Frozen segment net sales decreased by 0.9% to $1,076.2 million, with a 1.1% headwind from M&A [10] - International segment net sales fell 18% to $212.3 million, driven by a 13.2% unfavorable impact from M&A [11] - Foodservice reported sales of $264.5 million, down 0.8% year-over-year, including a 1.0% headwind from M&A [12] Financial Health - Conagra ended the quarter with cash and cash equivalents of $698.1 million and long-term debt of $7,222.6 million [14] - The company generated $120.6 million in net cash flows from operating activities, with capital expenditures of $146.8 million, resulting in a free cash flow of negative $26.2 million [14] Future Outlook - For fiscal 2026, Conagra expects organic net sales growth to range from negative 1% to positive 1%, with adjusted earnings forecasted between $1.70 and $1.85 per share, down from $2.30 in fiscal 2025 [16] - Recent estimates for the company have been trending downward, indicating a potential in-line return in the coming months [19] Industry Context - Conagra Brands is part of the Zacks Food - Miscellaneous industry, where competitor Lamb Weston reported a slight revenue increase of 0.3% year-over-year [20]

Core Insights - Conagra Brands, Inc. reported first-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics showed a year-over-year decline [1][12] Financial Performance - Adjusted earnings per share (EPS) were 39 cents, surpassing the Zacks Consensus Estimate of 33 cents, but reflecting a 26.4% decline year over year [2] - Net sales totaled $2,632.6 million, down 5.8% year over year, yet exceeding the Zacks Consensus Estimate of $2,609 million [3] - Organic net sales decreased by 0.6%, with a 0.6% positive impact from price/mix offset by a 1.2% decline in volume [4] Profitability Metrics - Adjusted gross profit fell 11.3% to $644 million, with adjusted gross margin contracting 153 basis points to 24.4% [5] - Adjusted EBITDA was $441 million, down 16.4% year over year [6] Segment Performance - Grocery & Snacks segment reported net sales of $1,079.6 million, down 8.7% year over year, driven by a 7.7% adverse impact from M&A [7] - Refrigerated & Frozen segment saw net sales decrease by 0.9% year over year to $1,076.2 million, reflecting a 1.1% headwind from M&A [8] - International segment's net sales declined 18% year over year to $212.3 million, missing estimates due to a 13.2% unfavorable impact from M&A [9] - Foodservice segment reported sales of $264.5 million, down 0.8% year over year, with a 1.0% headwind from M&A [10] Financial Health - The company ended the quarter with cash and cash equivalents of $698.1 million and long-term debt of $7,222.6 million [13] - For fiscal 2026, Conagra projects EPS between $1.70 and $1.85 and organic growth between -1% and 1% [12][15] Dividend Declaration - Conagra declared a quarterly dividend of 35 cents per share, payable on November 26, 2025 [14]