Lamb Weston Q1 2027: Fourth Straight Beat and Raised Guidance

Lamb Weston posted adjusted diluted EPS of $0.75 for its fiscal first quarter of 2027, beating the consensus estimate of $0.59, with net sales of $1.67 billion also topping expectations. It is the fourth consecutive quarter of topping Wall Street's earnings forecast.

North America drove the quarter, with volume up 7% for a seventh straight quarter of sales volume growth and segment net sales rising to $1.14 billion on new customer wins and stronger demand. CEO Mike Smith credited capacity optimization initiatives begun over a year ago, which lifted North American utilization and should help the company overdeliver on cost savings targets.

International sales fell 8% to $528.9 million, with EMEA conditions described by management as persistently challenging as higher prior-year potato costs and factory underutilization weighed on results. Lamb Weston closed production at its Broekhuizenvorst facility and shifted those customers into its broader network, but the drag from abroad is ongoing.

GAAP earnings per share fell to $0.21 from $0.46 a year ago, a gap to the adjusted figure that reflects legal accruals, restructuring charges, and foreign currency losses booked in the quarter. The adjusted number is the one that tracks the operating trajectory.

Management raised full-year fiscal 2027 adjusted diluted EPS guidance to $3.05 to $3.35 from a prior range of $2.95 to $3.25, and lifted its adjusted EBITDA and net sales outlooks. The company also declared a quarterly dividend of $0.38 per share, payable December 4, 2026, with roughly $245 million still available under its repurchase authorization.