Conagra Q1 sales slip to $2.6 billion as adjusted EPS rises 5% and FY27 guide holds

Conagra Brands opened fiscal 2027 with softer top-line results and higher per-share profit. In a Wednesday release furnished on Form 8-K, the packaged-foods company said net sales for the quarter ended Aug. 30 fell 1.4% to $2.6 billion, while reported diluted EPS rose 5.9% to $0.36 and adjusted EPS increased 5.1% to $0.41. Organic net sales declined 1.1%.

Reported operating margin was 10.3% and adjusted operating margin was 11.5%. Organic net sales reflected a 1.0% positive price/mix impact and a 2.1% volume decline. Foreign exchange added 0.2% to reported sales and M&A subtracted 0.5%. Gross profit decreased 3.4% to $619 million as higher productivity and about $4 million in tariff refunds were more than offset by lower organic sales, cost-of-goods inflation, and unfavorable operating leverage. Gross margin fell 50 basis points to 23.8%.

Net income rose 6.0% to $174 million, or $0.36 per diluted share, from $165 million, or $0.34. Adjusted net income increased 4.3% to $197 million, or $0.41 per share, from $189 million, or $0.39. SG&A rose 4.4% to $350 million, mainly on legacy legal matters; adjusted SG&A fell 3.7% to $321 million, including a $10 million benefit tied to fiscal 2026 incentive compensation.

CEO John Brase said the quarter’s top line was largely in line with expectations and profit ran ahead of expectations, and that the company is advancing priorities around restoring margins, increasing investment, reducing complexity, and rebalancing capital allocation.

Management reaffirmed fiscal 2027 guidance: organic net sales change of (3)% to (1)% versus fiscal 2026, adjusted operating margin between 10.0% and 10.5%, and adjusted EPS between $1.40 and $1.50.

By the numbers

• Net sales: $2.6 billion (−1.4%); organic net sales −1.1%
• Net income: $174 million (+6.0%); adjusted net income: $197 million (+4.3%)
• Diluted EPS: $0.36 (+5.9%); adjusted EPS: $0.41 (+5.1%)
• Segments: Grocery & Snacks $1.1B (−2.6%); Refrig. & Frozen $1.1B (−2.1%); Foodservice $273M (+3.2%)
• Operating margin: 10.3% reported; 11.5% adjusted
• Gross profit: $619 million (−3.4%); gross margin 23.8% (−50 bps)
• Organic drivers: price/mix +1.0%; volume −2.1%
• FY2027 guide reaffirmed: organic sales (3)%–(1)%; adj. OM 10.0%–10.5%; adj. EPS $1.40–$1.50

Sources

1. Conagra Brands, Inc. Form 8-K (Item 2.02), accepted Sept. 30, 2026 7:32:13 a.m. ET, accession 0000023217-26-000052
2. Conagra Brands, Inc. Form 8-K Exhibit 99.1 (earnings press release), accession 0000023217-26-000052

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.