Conagra Logs Surprise Earnings Growth Even as Soft Volume Weighs on Revenue

12:06 PM EDT, 09/30/2026 (MT Newswires) -- Conagra Brands (CAG) reported an unexpected year-over-year increase in fiscal first-quarter earnings on Wednesday, although volume weakness drove the packaged food company's revenue lower. The company's adjusted earnings rose to $0.41 a share for the quarter ended Aug. 30 from $0.39 a year earlier, defying the FactSet-polled consensus that called for a decrease to $0.28. Sales fell 1.4% to nearly $2.6 billion, just above the Street's view of $2.59 billion. On an organic basis, sales declined 1.1%, driven by a 2.1% volume drop, Conagra said. Last week, RBC Capital Markets said it expected Conagra to report quarterly results toward the low end of its own guidance, but the company faces rising freight costs and a challenging consumer environment. "We delivered a solid start to fiscal 2027 with top line results largely in line with expectations and profit ahead of expectations amid a challenging operating environment," Conagra Chief Executive John Brase said in the Wednesday earnings release. For fiscal 2027, the Birds Eye and Healthy Choice frozen food brands' parent continues to expect organic revenue to decrease by 1% to 3%. It maintained its adjusted EPS forecast range of $1.40 to $1.50, while the Street is looking for $1.44. Shares of the company declined 5% in Wednesday trade, while the stock has lost 22% so far this year. Sales in the grocery and snacks segment fell 2.6% to $1.05 billion, while the refrigerated and frozen division recorded a 2.1% decline to $1.05 billion. International and foodservice logged sales growth of 2.7% and 3.2%, respectively. In July, Conagra announced plans to streamline its operations, including a review of non-core assets, as it sought to restore margins and invest more aggressively in supply chains. "We are acting on our previously outlined priorities including restoring margins, increasing investment, reducing complexity, and rebalancing capital allocation, which are translating into measurable progress across the business," Brase said Wednesday. "While there is more work to be done, we remain on track." In the broader industry, consumer food company General Mills (GIS) reported better-than-expected fiscal first-quarter results and reiterated its full-year outlook last week. In August, packaged food company Kraft Heinz (KHC) narrowed its full-year earnings guidance. Price: 13.36, Change: -0.77, Percent Change: -5.45