10-K · July 15, 2026
Conagra Brands, Inc. reported substantial financial challenges in FY26, highlighted by a significant diluted loss per share of $4.00, driven by impairments totaling $2.93 billion linked to goodwill and intangible…
Earnings analysis · 10-Q
CAG earnings analysis
Filed September 30, 2026 · Our reading of the company's report
The latest report
Conagra delivered a $2.596 billion revenue quarter and reported diluted EPS of $0.36, exceeding the $0.29 consensus EPS estimate. Revenue declined both sequentially and year over year, while free cash flow was negative…
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Conagra delivered a $2.596 billion revenue quarter and reported diluted EPS of $0.36, exceeding the $0.29 consensus EPS estimate. Revenue declined both sequentially and year over year, while free cash flow was negative $127.9 million. Management reaffirmed fiscal 2027 guidance rather than raising it, supporting a neutral overall assessment.
Reported figures
- Earnings per share
- $0.36
What stood out
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Revenue declined sequentially and year over year
Revenue was $2.596 billion, down approximately 9.9% from $2.88 billion in the immediately preceding quarter and approximately 1.3% from $2.63 billion a year earlier.
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EPS beat estimates
Reported diluted EPS was $0.36 versus the $0.29 consensus estimate, a $0.07 beat. Adjusted EPS was $0.41, according to the earnings discussion.
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Share repurchases resumed
The company repurchased 2,662,660 shares at an average price of $16.52 during the quarter; approximately $793.6 million remained available under the authorization as of August 30, 2026.
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Fiscal 2027 outlook reaffirmed
Management reaffirmed fiscal 2027 adjusted operating-margin guidance of 10.0% to 10.5% and expected capital expenditures of approximately $550 million.
What to watch
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Negative free cash flow
Free cash flow was negative $127.9 million for the quarter, limiting near-term internally generated funding despite management's fiscal 2027 target of free-cash-flow conversion above 90%.
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Material leverage and rate exposure
Long-term debt, including current installments, was $7.73 billion at August 30, 2026, with a fair value of $7.48 billion. A 1% increase in interest rates would reduce the fair value of fixed-rate debt by approximately $318.0 million.
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Commodity and currency volatility
The filing states that there were no material changes to previously disclosed risk factors during the first quarter of fiscal 2027. However, the hypothetical 10% fluctuation exposure was $11.0 million for agriculture commodities, $3.6 million for energy commodities, and $9.2 million for foreign exchange as of August 30, 2026.
Management's outlook
Fiscal 2027 outlook was reaffirmed. Management expects organic net sales to decline 3% to 1%, adjusted operating margin of 10.0% to 10.5%, approximately $140 million of equity earnings, approximately $550 million of capital expenditures, and free-cash-flow conversion above 90%. Revenue guidance fields are null because the outlook is stated as a percentage change rather than dollar revenue.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.