Lamb Weston tops quarterly profit estimates, lifts fiscal 2027 forecast

Lamb Weston reported first quarter earnings per share of $0.75, beating estimates by $0.14. Revenue was $1.67 billion, below the $1.70 billion expected on Wall Street.

The company raised its outlook for the rest of fiscal 2027. It now expects net sales to grow at a low single digit rate, up from a prior range of 0.0% to 1.0%. Adjusted EBITDA guidance moved up to a range of $1.125 billion to $1.215 billion, from $1.10 billion to $1.20 billion. Adjusted diluted earnings per share guidance rose to a range of $3.05 to $3.35, from $2.95 to $3.25.

Chief executive Mike Smith said the quarter was driven by continued momentum in North America, which he attributed to strong customer relationships that lifted sales volume and to cost savings.

The board kept its quarterly dividend at $0.38 per share, payable December 4, 2026, to shareholders of record as of November 6, 2026. Lamb Weston bought back no shares during the quarter, leaving about $245 million available under its existing repurchase authorization.

Beating profit estimates while raising guidance across sales, EBITDA and earnings per share suggests the volume growth and cost savings behind the quarter have further room to run, rather than marking a one-off improvement. Holding the dividend steady while skipping buybacks points to a preference for preserving that $245 million of repurchase capacity rather than spending it immediately, even with the balance sheet strengthened by the earnings beat. If the customer relationship strength in North America that management credits for the quarter continues, it would support the raised low single digit sales growth outlook for the rest of the fiscal year rather than reflect a temporary demand bump.