Conagra Beats Q1 Estimates Despite Sales Declines

Conagra Brands reported Q1 fiscal 2026 adjusted EPS of $0.39 (vs. $0.33 expected) and revenue of about $2.63 billion, though both declined year-over-year (EPS down ~26%, revenue down ~5.8%). Organic net sales fell 0.6% in the quarter, driven by price/mix gains of 0.6% offset by a 1.2% volume decline, while M&A and currency headwinds subtracted roughly 5.1% and 0.1%, respectively. Adjusted gross profit dropped 11.3% to $644 million, adjusted EBITDA fell 16.4% to $441 million, and adjusted gross margin contracted 153 basis points to 24.4%. The company gained volume share in pantry-staple categories such as Slim Jim and Act II popcorn, helping sales resilience amid inflation. Conagra affirmed its FY2026 adjusted EPS guidance of $1.70–$1.85, which management said is roughly in line with consensus. The stock has fallen about 34% year-to-date, and investors will be watching management commentary on the earnings call.