Conagra Brands reports Q4 FY 2026 financial results
The financial results highlight modest sales growth in the final quarter, continued pressure on annual performance, and a strategic reset under new President and Chief Executive Officer John Brase.
USA – Conagra Brands, one of North America’s leading branded food companies, reported its financial results for the fourth quarter and full fiscal year ended May 31, 2026.
The Chicago-based consumer packaged goods giant reported fourth-quarter net sales of US$2.88 billion, marking a 3.6% increase compared to the prior-year period.
Net sales for the Grocery & Snacks segment increased 0.3% to US$1.2 billion in the quarter. The quarterly sales growth was primarily supported by a 7.7% benefit from an extra 53rd week in the fiscal calendar, offset by net merger and acquisition activity.
Organic net sales remained approximately flat, as a 1.6% improvement in price/mix was offset by a corresponding 1.6% decline in product volume.
For the fourth quarter, Conagra recorded a net loss attributable to the company of US$1.62 billion, or US$3.37 per diluted share, compared to net income in the prior-year period.
The loss was driven by US$1.96 billion in non-cash goodwill and brand impairment charges. On an adjusted basis, fourth-quarter diluted earnings per share (EPS) stood at US$0.47.
Fourth-quarter adjusted operating margin arrived at 11.7%, as operational productivity gains and US$6 million in tariff refunds were tempered by inflation in cost of goods sold and unfavorable operating leverage.
For the full fiscal year 2026, total reported net sales decreased 2.9% to US$11.30 billion, while full-year organic net sales dipped 0.4%.
Full-year net performance registered a reported diluted loss per share of US$4.00, reflecting the impairment charges recognized during the period.
Adjusted full-year EPS totaled US$1.72. Despite broader industry headwinds, Conagra reported volume share gains across core categories, including frozen single-serve and multi-serve meals, frozen vegetables, meat snacks, seeds, and pudding.
New CEO John Brase, who assumed leadership earlier this year, said Conagra is prioritizing investments that strengthen its frozen foods, snacks, and grocery businesses while simplifying operations and reviewing non-core assets.
The company plans to increase advertising spending, enhance supply chain efficiency, and implement selective pricing actions where necessary to offset rising commodity and packaging costs. Brase also emphasized restoring margins and improving cash generation as key priorities for fiscal 2027.
Looking ahead to fiscal 2027, Conagra issued financial guidance anticipating an organic net sales change of (3)% to (1)% and an adjusted operating margin between 10.0% and 10.5%.
Adjusted EPS for fiscal 2027 is projected between US$1.40 and US$1.50, reflecting a planned US$40 million increase in advertising and brand investments alongside ongoing supply chain initiatives.
Additionally, the company announced a dividend reduction to US$0.175 per share quarterly (US$0.70 annualized) to prioritize debt reduction and business reinvestment.
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