Shares of Conagra Brands, Inc. (NYSE: CAG) rose over 1% on Wednesday. The stock has dropped 9% over the past three months. The branded food company is slated to report its earnings results for the first quarter of 2026 on Wednesday, October 1, before market opens. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $2.62 billion for Conagra in the first quarter of 2026, which indicates a decrease of over 6% from the same period a year ago. In the fourth quarter of 2025, net sales declined 4.3% year-over-year to $2.8 billion.
Earnings
The consensus estimate for Q1 2026 earnings per share is $0.33, which implies a decline of 38% from the prior-year quarter. In Q4 2025, adjusted EPS decreased 8% YoY to $0.56.
Points to note
Conagra has been facing a challenging operating environment with inflation, supply challenges, and weak consumer sentiment taking a toll on its business performance. Inflation led to higher costs while supply chain challenges led to lost sales as well as a rise in expenses to address the issues. Persistent inflation and economic uncertainty led to a shift in consumers’ purchasing behaviors as they sought value and opted for affordable options. These factors impacted the company’s sales and volumes in the fourth quarter of 2025.
Conagra anticipates these headwinds to continue into fiscal year 2026. Persistent inflation coupled with tariffs are anticipated to lead to higher costs for the company. In addition, inflationary pressures are likely to lead to consumers becoming more value-conscious. These headwinds are likely to weigh on the top and bottom lines in Q1.
Conagra is working on improving its supply chain resiliency by modernizing its facilities and expanding capacity in high-growth categories. It is also focusing on driving growth in categories like frozen, snacks, and baked and fried chicken.
Conagra expects organic sales in the first half of the year to be down slightly versus the previous year. It also expects its margins, on an adjusted basis, to improve sequentially each quarter, with margins in the first quarter expected to be the lowest of the year due to the timing of supply chain investments.