ConAgra Brands 2026 Q2 Earnings Sharp Net Loss Amid Revenue Decline and EPS Drop

ConAgra Brands (CAG) reported fiscal 2026 Q2 earnings on December 19, 2025, with results showing a significant net loss and revenue contraction. While the company’s non-GAAP EPS of $0.45 slightly beat estimates, its GAAP net loss of $663.6 million (333.3% worse than 2025) and 6.8% revenue decline highlighted operational challenges. Guidance for fiscal 2026 was reaffirmed, with management expressing optimism about second-half growth despite absorption headwinds and macroeconomic pressures.

Revenue

Total revenue fell 6.8% year-over-year to $2.98 billion, driven by a 3.0% decline in organic net sales and a 3.9% drag from M&A impacts, partially offset by 0.1% favorable foreign exchange. The Grocery & Snacks segment led with $1.21 billion, while Refrigerated & Frozen generated $1.25 billion, supported by momentum in single-serve meals and snacks. International revenue totaled $230.40 million, and Foodservice contributed $288.40 million, reflecting a resilient but shrinking footprint.

Earnings/Net Income

ConAgra swung to a GAAP net loss of $663.6 million ($1.39 per share), a 333.3% deterioration from 2025 Q2’s $284.5 million profit. Non-GAAP EPS of $0.45 beat estimates by $0.01, but the sharp GAAP loss underscored impairment charges and operational challenges. The EPS performance, while adjusted, highlights a significant deterioration in core profitability.

Post-Earnings Price Action Review

The stock price of ConAgra Brands edged down 2.58% during the latest trading day, 2.25% over the past week, and 0.17% month-to-date, reflecting investor skepticism about its near-term outlook. Despite the non-GAAP EPS beat, the GAAP net loss and revenue miss weighed on sentiment. Historical price reactions to earnings suggest mixed outcomes, with the current decline aligning with broader concerns about margin pressures and absorption headwinds. Analysts note that while the company reaffirmed guidance, the wide EPS range and structural challenges may limit upside potential in the near term.

CEO Commentary

CEO Sean Connolly emphasized progress in frozen and snacks segments, including market share gains in single-serve meals and growth from brands like Slim Jim. Strategic investments in innovation, AI-driven efficiency (via Project Catalyst), and working capital discipline were highlighted. Connolly acknowledged short-term hurdles, including delayed shipments and absorption costs, but expressed confidence in second-half organic growth and margin expansion post-2026.

Guidance

ConAgra reaffirmed fiscal 2026 guidance for organic sales growth of -1% to +1% and adjusted EPS of $1.70–$1.85. Management cited a $0.05 EPS headwind from Ardent-related costs and a 7% core inflation rate (4% core + 3% tariffs). The CFO noted a 5.5% net margin target post-absorption, with EPS volatility expected due to operational uncertainties.

Additional News

Recent non-earnings updates include insider trading activity, with SVP Melissa Napier selling 13,011 shares and Thomas Brown purchasing 10,000 shares. Hedge funds showed mixed positions, with Two Sigma and Arrowstreet Capital increasing stakes, while BlackRock and Macquarie reduced holdings. Government contracts focused on food donations, including $172,886 for buttery spread tubs. Goldman Sachs downgraded the stock to "Sell," while analyst price targets ranged from $16–$23, reflecting divergent views on valuation and recovery potential.