Conagra Brands Q1 profit rises 6% to $174M despite lower sales
- Conagra Brands (NYSE:CAG) reported fiscal 2027 first-quarter net income of $174 million, up 6% year over year despite lower sales.
- Net sales declined 1.4% to $2.6 billion, while adjusted earnings per share increased 5.1% to $0.41.
- Conagra reaffirmed fiscal 2027 guidance for organic sales decline of 1%–3% and adjusted EPS of $1.40–$1.50.
Conagra Brands (NYSE:CAG) reported fiscal 2027 first-quarter net income of $174 million, up 6% year over year, as earnings increased despite a 1.4% decline in net sales to $2.6 billion.
The quarter ended August 30, 2026, included a 1.1% decline in organic sales, excluding acquisition, divestiture and currency impacts, while results differed across business segments with Grocery & Snacks and Refrigerated & Frozen sales declining and International and Foodservice sales increasing.
Conagra reported diluted earnings per share of $0.36, up 5.9%, and adjusted earnings per share of $0.41, up 5.1%, while gross margin declined 50 basis points to 23.8% and free cash flow was negative $128 million.
The company reported that net debt declined 2.5% year over year to $7.4 billion as it continued managing its balance sheet and operating performance across its food brands.
Conagra reaffirmed fiscal 2027 guidance, expecting organic sales to decline 1%–3% compared with fiscal 2026, adjusted operating margin of 10%–10.5%, and adjusted earnings per share of $1.40–$1.50.
