Conagra Brands Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did CAG Beat Earnings? Q2 2026 Results
Conagra Brands delivered a mixed fiscal Q2 2026, edging past earnings expectations while grappling with broad-based revenue pressure and a massive non-cash charge that dominated the headline numbers. Adjusted EPS came in at $0.45, beating the $0.44 consensus estimate by 3.19%, but the underlying business showed strain as net sales fell 6.8% year-over-year to $2.98 billion, narrowly missing forecasts. The most consequential development in the quarter was $968 million in non-cash goodwill and brand impairment charges, triggered largely by a sustained decline in the company's share price, which pushed the reported net loss to $663.60 million, or $1.39 per diluted share. Organic sales declined 3.0%, with Refrigerated and Frozen being the weakest segment as adjusted operating profit dropped 35.6%. Adjusted gross margin contracted 292 basis points to 23.4%, pressured by cost inflation and divestiture-related profit loss. Analysts at multiple firms trimmed price targets following the report. Looking ahead, Conagra reaffirmed adjusted EPS guidance of $1.70 to $1.85 for fiscal 2026, though it lowered its equity earnings outlook to approximately $170 million, citing softer Ardent Mills results and flagging roughly 7% total cost inflation, including tariff-related headwinds.
- 3.0% organic volume decline driven by changes in retailer purchasing activity and timing of merchandising events
- ~100 basis point headwind from retailer inventory timing shifts around quarter end
- ~60 basis point price/mix headwind from prior-year trade expense accrual adjustment and unfavorable product mix
- Cost of goods sold inflation more than offset productivity gains
- Lost profit from divested businesses
- $968 million non-cash goodwill and brand impairment charges driven by sustained share price decline
- Volume share gains in snacks categories including ready-to-eat popcorn, pudding, hot cocoa, seeds, refrigerated whipped toppings, frozen desserts, and frozen breakfast
“While we continued to navigate a challenging consumer environment in the second quarter, I am pleased with the continued underlying momentum we are seeing across the business. As we look ahead to the second half, we are well positioned to return to organic net sales growth supported by a robust innovation pipeline, increased merchandising and A&P investment, and a resilient supply chain. While the macro environment remains dynamic, our active management and focused execution give us confidence in our path forward. Accordingly, we are reaffirming our fiscal 2026 guidance.”
Conagra Brands CEO, on the earnings call
Forward Guidance & Outlook
Conagra reaffirmed its fiscal 2026 guidance: organic net sales change of -1% to +1% vs. fiscal 2025, adjusted operating margin of ~11.0% to ~11.5%, and adjusted EPS of $1.70 to $1.85. The company lowered its adjusted equity earnings estimate to approximately $170 million from the prior ~$200 million. Total cost of goods sold inflation is expected at approximately 7%, including core inflation slightly above 4% and an approximately 3% impact from U.S. tariffs on tin plate steel, aluminum, and limited Chinese imports. Mitigating actions include accelerated cost savings, sourcing alternatives, and targeted pricing.
CAG YoY Financials
CAG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.