ConAgra Brands 2025 Q4 Earnings Misses Targets as Net Income Swings 145.1%

ConAgra Brands (CAG) reported its fiscal 2025 Q4 earnings on Jul 10th, 2025. The company posted a significant net income turnaround from a loss in the previous year, yet it missed earnings estimates. Analysts had expected an EPS of $0.56, but ConAgra delivered slightly below at $0.54 per share, resulting in a 5.08% miss. The company’s guidance for fiscal 2026 was in line with expectations, but it remains cautious due to anticipated inflationary pressures and macroeconomic uncertainties.

Revenue

The total revenue for ConAgra Brands in 2025 Q4 fell by 4.3% to $2.78 billion, compared to $2.91 billion in 2024 Q4.

Earnings/Net Income

ConAgra Brands returned to profitability with an EPS of $0.54 in 2025 Q4, a significant improvement from a $1.19 loss per share in 2024 Q4. The net income was $256 million, a positive swing from a $567.20 million loss the previous year. Despite the turnaround, the EPS performance was below expectations.

Price Action

The stock price of ConAgra Brands edged up 0.83% during the latest trading day, dropped 7.81% during the most recent full trading week, and tumbled 12.95% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring ConAgra Brands shares following a quarterly revenue decline and holding for 30 days has historically led to a -33.86% return. This contrasts sharply with a benchmark return of 85.53%, resulting in an excess return of -119.39% and a compounded annual growth rate of -8.01%. The approach is marked by high volatility at 21.49% and a maximum drawdown of -43.09%, highlighting substantial risk and potential losses for investors. These metrics suggest that the strategy may not be favorable given the current financial landscape and market conditions for ConAgra Brands.

CEO Commentary

Sean Connolly, CEO of Conagra Brands, highlighted the company’s commitment to driving volume growth, stating, "We are in the business of building brands" and acknowledged the challenges posed by persistent inflation, which he notes is "definitely not transitory." He emphasized the importance of investing margin to stimulate volume, particularly in key areas such as frozen snacks. Connolly expressed optimism about future margin expansion, citing strong productivity gains and ongoing supply chain investments, asserting, "We believe that healthy volumes are key at this point to long-term value creation." He concluded with confidence, stating, "We expect good margin expansion following fiscal '26."

Guidance

Conagra Brands projects a fiscal '26 core inflation of 4% and anticipates productivity improvements of over 5%. The company expects to invest significantly in infrastructure, with CAPEX rising 16% year-over-year, and aims to pay down $700 million in debt. Connolly indicated a commitment to maintaining the dividend, despite financial pressures, and expressed confidence in returning to a more favorable margin environment by fiscal '27, guided by strategic pricing actions and operational efficiencies.

Additional News

Conagra Brands recently announced a quarterly dividend payment of $0.35 per share, scheduled to be paid on August 28, 2025, to stockholders of record as of July 30, 2025. The company has consistently paid dividends since January 1976, underscoring its commitment to returning value to shareholders. In other news, Conagra has been navigating sector-wide challenges, with its Zacks Rank declining to a rare #5 (Strong Sell) due to cost pressures and weak demand. The company also highlighted upcoming investments in infrastructure, aiming for a 16% increase in CAPEX year-over-year, which is part of its strategy to bolster supply chain resiliency and support long-term growth.