Conagra Reports 65% Net Income Drop, Maintains FY2026 Outlook Amid Inflation Pressures

Conagra Brands reported a decline in first-quarter fiscal 2026 results, with net sales falling 5.8% year-over-year to $2.63 billion, though still exceeding expectations. Earnings per share decreased significantly, but adjusted EPS of $0.39 surpassed the consensus forecast. The company experienced sales declines across all segments, affected by inflation, tariffs, and weak consumer sentiment, but gained market share in frozen vegetables, meals, and protein snacks categories. Despite these challenges, Conagra reaffirmed its full-year 2026 guidance, projecting adjusted EPS between $1.70 and $1.85 and organic net sales to be flat to slightly down. Management emphasized ongoing inflationary pressures, especially higher costs in animal proteins and increased tariffs, which have elevated total inflation to the low 7% range. The company remains focused on disciplined capital allocation and operational agility to navigate the difficult environment ahead.