Conagra Brands Inc. (NYSE:CAG) turned in results that beat Wall Street’s low bar, even as sales and profits slipped.
The food giant reaffirmed its full-year outlook, betting on pricing power and steadier supply chains to offset rising costs.
But with tariffs and protein inflation tightening the squeeze, Conagra’s near-term path looks choppy, setting the stage for a high-stakes test in the back half of the year.
Also Read: Conagra Reaffirms Outlook Even As Tariffs Add To Inflation
The company reported fiscal first-quarter 2026 revenue of $2.63 billion, a 5.8% decline from the prior year, while adjusted EPS dropped 26.4% to 39 cents. Results still exceeded expectations due to trade expense timing and favorable mix effects.
Management reaffirmed guidance for organic net sales between –1% and +1%, operating margins of 11.0%–11.5%, and EPS of $1.70–$1.85.
Conagra also cautioned that tariffs could add about 3% to costs, pushing overall inflation into the low-7% range.
Bank of America analyst Peter T. Galbo maintained an Underperform rating and a $18 price forecast, which he values at 10x his calendar year 2026 EPS estimate. He kept his fiscal …