Conagra Brands reports Q3FY2026 results as organic sales rise
The results reflect both the resilience of its core brands and the ongoing challenges facing the broader food industry.
USA – Conagra Brands has reported results for the third quarter of fiscal 2026, which ended on February 22, 2026, showing a mixed performance: net sales declined slightly while organic sales increased.
The packaged food company said the quarter’s results reflected both portfolio changes and improved underlying demand across parts of its business.
For the quarter, Conagra posted net sales of US2.8 billion, down 1.9% from a year earlier, while organic net sales increased 2.4%.
Gross profit decreased 7.4% to US$658 million in the quarter, and adjusted gross profit decreased 6.3% to US$660 million as higher organic net sales and productivity were more than offset by the negative impact of cost of goods sold inflation, unfavourable operating leverage, and lost profit from divested businesses.
Gross margin decreased 141 basis points to 23.6% in the quarter, and adjusted gross margin decreased 112 basis points to 23.7%.
In the quarter, net income attributable to Conagra Brands increased 37.7% to US$200 million, or US$0.42 per diluted share, compared to US$145 million, or US$0.30 per diluted share, in the prior year period.
Adjusted net income attributable to Conagra Brands decreased 22.3% to US$188 million, or US$0.39 per diluted share, compared to US$242 million, or US$0.51 per diluted share in the prior year period, primarily as a result of the decrease in adjusted gross profit.
Adjusted EBITDA, which includes adjusted equity method investment earnings and pension and postretirement non-service income, decreased 14.9% to US$437 million in the quarter.
Sean Connolly, President and CEO of Conagra Brands, expressed satisfaction with the trajectory, noting that the business reached a critical “inflection point” where innovation and strategic pricing began to drive volume gains in key categories.
Conagra reported that the Grocery & Snacks segment saw net sales decline 6.3% to about US$1.2 billion, mainly due to portfolio effects from mergers and acquisitions, even as organic sales rose 1.8%.
The increase was supported by a better price mix and strong performance in the snacks portfolio, although volume remained under pressure.
The Refrigerated & Frozen segment delivered net sales growth of 1.6% to roughly US$1.1 billion, supported by 3.6% organic growth.
Foodservice segment sales also rose 1.8% to US$261 million, while the International segment increased 1.3% to US$227 million.
Across the company, management said cost inflation and weaker operating leverage continued to weigh on profit, even as productivity gains and stronger organic sales provided some support.
Looking ahead, Conagra narrowed its full-year fiscal 2026 guidance. The company now expects organic net sales change near the midpoint of its negative 1% to positive 1% range compared to fiscal 2025, adjusted operating margin near the high end of its approximately 11.0% to 11.5% range, and adjusted EPS of approximately US$1.70, at the low end of its prior US$1.70 to US$1.85 range.
The company’s updated guidance suggests a more cautious view on earnings, even as it sees steadier sales trends heading into the final quarter of the fiscal year.
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