Lamb Weston

Lamb Weston (LW) Q1 2026 Earnings

Reported Sep 30, 2025 at 8:32 AM ET · SEC Source

Q1 26 EPS

$0.74

BEAT +38.71%

Est. $0.53

Q1 26 Revenue

$1.66B

BEAT +2.70%

Est. $1.62B

vs S&P Since Q1 26

-34.1%

TRAILING MARKET

LW -22.5% vs S&P +11.6%

Market Reaction

Did LW Beat Earnings? Q1 2026 Results

Lamb Weston delivered a stronger-than-expected first quarter of fiscal 2026, with adjusted diluted EPS of $0.74 clearing the $0.53 consensus estimate by 38.71%, even as GAAP profits were weighed down by restructuring charges and a tax rate that surge… Read more Lamb Weston delivered a stronger-than-expected first quarter of fiscal 2026, with adjusted diluted EPS of $0.74 clearing the $0.53 consensus estimate by 38.71%, even as GAAP profits were weighed down by restructuring charges and a tax rate that surged to 42.7%. Revenue came in at $1.66 billion, edging 2.70% above expectations and up 0.3% year-over-year, as a 6% volume increase driven by customer wins in North America and Asia was nearly wiped out by a 7% decline in price/mix reflecting prior-year pricing concessions made to support retail and foodservice partners. GAAP net income fell sharply to $64.30 million, pressured by $31.90 million in Cost Savings Program charges, a pension settlement, and shareholder activism advisory fees, though adjusted EBITDA ticked up 1% to $302.20 million. The results sparked an 8% premarket stock jump, and management reaffirmed full-year constant-currency net sales guidance of $6.35 billion to $6.55 billion, with at least $100 million in cost savings targeted by fiscal year-end 2026.

Key Takeaways

  • 6% volume growth driven by customer wins and retention, particularly in North America and Asia
  • 7% decline in price/mix reflecting carryover impact of fiscal 2025 price and trade investments
  • Lower manufacturing costs per pound driven by cost savings initiatives
  • Lapping approximately $39 million prior year charge related to voluntary product withdrawal
  • Higher effective tax rate of 42.7% versus 28.5% in the prior year quarter
  • Equity method investment earnings declined from $11.3 million to a loss of $0.6 million
  • Favorable working capital led by lower finished goods inventories in North America
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LW YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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LW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q3 26
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LW Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 25 Q3 26

“The Lamb Weston team delivered a strong start to the fiscal year with solid volume growth and positive customer momentum, underscoring the strength of our value proposition and our operating model.”

— Mike Smith, Q1 2026 Earnings Press Release