Conagra Brands beats on profit, reaffirms fiscal 2027 targets
Revenue comes in just below expectations as the company holds its full-year guidance steady
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Conagra Brands reported first-quarter earnings per share of $0.41, $0.13 above expectations. Revenue came to $2.60bn, just under the $2.61bn expected.
The company reaffirmed its fiscal 2027 guidance, including organic net sales change of negative 3% to negative 1% versus fiscal 2026, adjusted operating margin of 10.0% to 10.5%, and adjusted earnings per share of $1.40 to $1.50.
John Brase, president and chief executive officer, said results were largely in line with expectations and that profit came in ahead of them. He credited progress on restoring margins, increasing investment, reducing complexity and rebalancing capital allocation.
The fiscal 2027 targets set a lower bar than the range Conagra had guided to for fiscal 2026, when it expected organic net sales roughly flat to up 1% and adjusted operating margin of 11.0% to 11.5%. That earlier framework already accounted for pressure from elevated costs and a change in chief executive, so the new floor confirms a deterioration rather than a reversal of it. The profit beat points to some traction on cost and complexity work, but holding the full-year targets steady rather than raising them suggests management does not expect demand to accelerate soon.