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.