ConAgra Brands 2026 Q1 Earnings Sharp EPS Drop, Revenue Falls 5.8%

ConAgra Brands reported mixed results in its fiscal 2026 Q1 earnings release, with a sharp decline in earnings per share and revenue falling short of the previous year. While the company did not meet expectations on core metrics, it maintained guidance and signaled optimism for the back half of the year.

Revenue
ConAgra Brands reported total revenue of $2.63 billion for the first quarter of fiscal 2026, a 5.8% decrease compared to $2.79 billion in the same period of the prior year. The decline reflects broader market pressures and challenges in key product categories.

Earnings/Net Income
The company’s earnings per share plummeted by 64.9% to $0.34, down from $0.97 in the year-ago quarter. Net income also dropped significantly, falling to $164.50 million in Q1 2026 from $466.90 million in Q1 2025, a 64.8% reduction. The steep drop in EPS indicates a disappointing performance on profitability.

Price Action
Shares of ConAgra Brands edged up 2.47% during the latest trading day, 4.16% over the past full trading week, and gained 0.89% month-to-date.

Post-Earnings Price Action Review
Following the earnings report, the stock’s positive movement suggests some investor confidence despite the challenging results. While revenue and earnings declined, the company emphasized continued momentum in high-growth segments like Frozen and Protein Snacks, and highlighted strategic pricing in staples to offset inflation. Management remains cautiously optimistic about the company’s ability to recover and drive margin expansion in the latter half of the year.

CEO Commentary
Sean Connolly, President, CEO & Director, highlighted volume momentum in the Frozen and Protein Snacks segments, noting the company is capitalizing on last year’s supply constraints. He acknowledged consumption softness due to delayed promotions and pricing effects in staples but expressed confidence in the long-term strategy. Connolly emphasized innovation and merchandising as key drivers of future growth and reiterated the company’s commitment to inflation-justified pricing and margin management.

Guidance
ConAgra Brands maintained its fiscal 2026 guidance, projecting 7% inflation, including 4% core inflation and 3% tariffs. The company is focused on productivity and tariff mitigation to offset these pressures, with expectations of margin expansion following the current fiscal year. Connolly outlined a strategy of volume investments in key categories while managing margins prudently.

Additional News
On October 1, 2025, ConAgra Brands announced a quarterly dividend payment of $0.35 per share, to be distributed on November 26, 2025, to shareholders of record as of October 30, 2025. This marks the company’s 1900th consecutive quarterly dividend since 1976. The payout reflects the company’s ongoing commitment to returning value to shareholders. As a leading branded food company, ConAgra continues to balance innovation with operational agility to meet evolving consumer demands. With a portfolio that includes well-known brands like Birds Eye, Healthy Choice, and Slim Jim, the company remains a key player in North America’s food industry.