Conagra Brands posts Q2 results showing decline in sales and adjusted EPS

Conagra Brands (NYSE:CAG) reported its results for Q2 fiscal 2026, ending November 23, 2025, showing a decline in net sales and adjusted EPS, largely driven by significant non-cash goodwill and brand impairment charges.

For the quarter, the company reported net sales of $3 billion, reflecting a decrease of 6.8% year-over-year.

Organic net sales were down 3%.

The company’s reported operating margin was a negative 20.1%, while the adjusted operating margin stood at 11.3%.

Conagra’s diluted loss per share was $1.39, primarily attributed to $968 million in impairment charges, including those related to goodwill and brand value.

Adjusted EPS was $0.45.

The company also reported a decline in adjusted EBITDA to $478 million, and free cash flow for the first half of the fiscal year dropped to $113 million.

However, Conagra reported a 10.1% decrease in net debt, bringing it down to $7.6 billion, with a net leverage ratio of 3.83x.

Despite these challenges, Conagra reaffirmed its full-year fiscal 2026 guidance, expecting organic net sales growth of between -1% and 1%, an adjusted operating margin of approximately 11%–11.5%, and adjusted EPS in the range of $1.70–$1.85.