Lamb Weston (LW) Q1 2027 Earnings
GAAP EPS of $0.21 includes $33.0 million legal proceedings and other claims accruals, $34.2 million Cost Savings Program/Restructuring expenses ($14.1 million in COGS, $20.1 million in gross profit adjustments), $12.4 million foreign currency exchange losses, and $15.1 million stock-based compensation expense
How Did LW Stock React to Q1 2027 Earnings?
Did LW Beat Earnings? Q1 2027 Results
Yes. Lamb Weston reported Q1 2027 earnings of $0.75 a share on Oct 6, 2026, beating the $0.59 consensus estimate by 27.4%. Revenue was $1.7B against a $1.7B estimate.
Lamb Weston Holdings delivered a stronger-than-expected first quarter of fiscal 2027, extending its streak of beating consensus EPS estimates to four consecutive quarters and lifting investor confidence heading into the back half of the year. The frozen potato giant posted adjusted diluted EPS of $0.75, well ahead of the $0.59 consensus estimate by 27.44%, while net sales of $1.67 billion edged past expectations by 0.87% and rose 0.7% year over year. The standout driver was North America, where a seventh consecutive quarter of volume growth, fueled by customer wins and stronger demand from existing accounts, pushed segment net sales up 5% to $1.14 billion. GAAP EPS fell sharply to $0.21 from $0.46 a year ago, weighed down by $33.00 million in legal accruals, $34.20 million in restructuring charges, and $12.40 million in foreign currency losses. The International segment remained a headwind, with sales declining 8% amid challenging EMEA conditions. Encouraged by the quarter's execution, management raised its fiscal 2027 adjusted diluted EPS guidance to $3.05-$3.35 and increased its adjusted EBITDA target to $1.13-$1.22 billion.
- North America sales volume grew 7% driven by higher demand from existing customers and customer wins
- Seventh consecutive quarter of sales volume growth in North America
- Capacity optimization initiatives in North America led to approximately 10 percentage point increase in utilization
- Cost savings initiatives and $5 million in tariff refunds boosted North America profitability
- International EBITDA declined 54% due to challenging EMEA market conditions, higher prior-year potato costs, and factory underutilization
- Price/mix declined 2% overall from trade support and mix shift toward chain customers and private-label products
“We are off to a solid start to the year, delivering first quarter net sales and profit above our expectations. Our first quarter results were driven by continued momentum in North America where our strong customer relationships fueled sales volume growth and we continued to drive cost savings.”
Lamb Weston CEO, on the earnings call
What Is Lamb Weston's Outlook?
Lamb Weston raised its fiscal 2027 outlook: Net Sales growth updated to 'Up Low Single Digits' (from 0.0%–1.0% prior, vs. fiscal 2026 52-week adjusted base of $6.485 billion); Adjusted EBITDA raised to $1.125–$1.215 billion (from $1.10–$1.20 billion); Adjusted Diluted EPS raised to $3.05–$3.35 (from $2.95–$3.25); Capital expenditures maintained at $380–$410 million (cash basis); Adjusted Income from Operations of $730–$810 million; D&A of approximately $410 million; interest expense of approximately $185–$190 million; adjusted effective tax rate of 25.0%–27.0%; diluted shares of 137.5–139.0 million; and net cash provided by operating activities of $750–$800 million.
LW YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $1.7B | $1.7B | +0.7% |
| Gross Profit | $266.5M | $342.4M | −22.2% |
| Operating Income | $82.2M | $156.5M | −47.5% |
| Net Income | $29.1M | $64.3M | −54.7% |
LW Revenue by Segment
LW Revenue by Geography
When Does Lamb Weston Report Next?
Figures from SEC filings and company reports. Not investment advice.