News
Conagra · Earnings · Inflation · Organic Growth
Conagra Brands reported fiscal Q3 2026 earnings, achieving 2.4% organic net sales growth to $2.8 billion, but adjusted earnings per share of $0.39 fell short of the $0.3992 forecast, leading to a 0.13% pre-market stock decline.
The company demonstrated resilience through strategic pricing and innovation, particularly in its frozen and snacking categories, as highlighted by CEO Sean Connolly. However, adjusted EPS declined year-over-year from $0.51, impacted by lower operating margins and a $0.10 headwind from the Ardent Mills joint venture.
Adjusted gross margin was 23.7%, while adjusted operating margin decreased 213 basis points year-over-year to 10.6%. Despite the stock trading near its 52-week low of $15.04, down 36% over the past year, InvestingPro analysis suggests the stock is undervalued.
Conagra updated its fiscal 2026 guidance, expecting organic net sales near the midpoint of -1% to +1%, adjusted operating margin near the high end of 11.0%-11.5%, and adjusted EPS at approximately $1.70. CFO Dave Marberger noted strong free cash flow generation, with an increased conversion estimate of approximately 105% for the year.
