Conagra achieves solid organic sales growth as strategic pivot stabilizes Q3 results

Conagra Brands (NYSE:CAG) reported financial results for the third quarter of fiscal 2026, ended February 22, 2026, on Wednesday, April 1.

Net sales for the quarter reached $2.8 billion, a 1.9% decrease on a reported basis.

However, organic net sales—which exclude the impacts of foreign exchange and divestitures—rose 2.4%.

This organic growth was driven by improved elasticities and a steady recovery in the company's frozen and snacks segments.

On the earnings front, Conagra reported a 40% increase in reported EPS to $0.42.

On an adjusted basis, however, EPS stood at $0.39, representing a 23.5% decline compared to the prior-year period.

The company also achieved an adjusted operating margin of 10.6% and adjusted EBITDA of $437 million for the quarter.

A primary highlight of the fiscal year-to-date has been the company’s disciplined cash management.

Free cash flow through the first three quarters of fiscal 2026 totaled $581 million.

This strong cash generation allowed Conagra to further fortify its balance sheet, with net debt falling to $7.3 billion.

The company’s net debt-to-EBITDA leverage ratio now stands at 3.83x, marking continued progress toward its long-term financial health targets.

Looking ahead, Conagra has narrowed its fiscal 2026 guidance to reflect the current market dynamics.

The company now expects full-year adjusted EPS to be approximately $1.70.