Conagra Brands (CAG) Q1 2027 Earnings
How Did CAG Stock React to Q1 2027 Earnings?
Did CAG Beat Earnings? Q1 2027 Results
Yes. Conagra Brands reported Q1 2027 earnings of $0.41 a share on Sep 30, 2026, beating the $0.28 consensus estimate by 45.6%. Revenue was $2.6B against a $2.6B estimate.
Conagra Brands delivered a notably strong profit beat in its fiscal first quarter of 2027, even as its top line remained under modest pressure. The packaged food company reported adjusted EPS of $0.41, clearing the $0.28 consensus estimate by 45.65%, while net sales of $2.60 billion edged past expectations by 0.30% despite falling 1.4% year over year. The headline driver behind the profit outperformance was a 71.8% surge in equity method investment earnings to $50.00 million from the Ardent Mills joint venture, which navigated wheat market volatility effectively, combined with a 3.7% decline in adjusted SG&A to $321.00 million. Adjusted EBITDA grew 2.4% to $451.00 million. The results arrive against a backdrop of a stock that had been trading well below its 52-week high ahead of the print, with investors focused on whether Conagra could demonstrate margin stability. Management reaffirmed fiscal 2027 guidance, calling for organic net sales change of negative 3% to negative 1% and adjusted EPS of $1.40 to $1.50.
- Higher productivity gains across segments
- 71.8% increase in equity method investment earnings from Ardent Mills JV driven by favorable wheat market conditions
- Lower adjusted SG&A expenses including $10 million FY2026 incentive compensation benefit
- Approximately $4 million in tariff refunds
- 15.1% increase in advertising and promotional spending to $61 million
- Dollar share gains in frozen vegetables, pudding, chili, frozen breakfast, hot dogs, and frozen desserts
- Foodservice volume growth of 2.5% with ~150 bps benefit from customer order timing
“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. Importantly, 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. While there is more work to be done, we remain on track to deliver the year and are reaffirming our fiscal 2027 guidance.”
Conagra Brands CEO, on the earnings call
What Is Conagra Brands's Outlook?
Conagra reaffirmed its fiscal 2027 guidance: organic net sales change of (3)% to (1)% vs. fiscal 2026; adjusted operating margin between 10.0% and 10.5%; adjusted EPS between $1.40 and $1.50. Key assumptions include equity earnings contribution of ~$140 million, pension income of ~$25 million, interest expense of ~$360 million, adjusted effective tax rate of ~24%, capital expenditures of ~$550 million, free cash flow conversion greater than 90%, and net leverage ratio at fiscal year end of approximately 4.0x.
CAG YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $2.6B | $2.6B | −1.4% |
| Gross Profit | $618.7M | $640.6M | −3.4% |
| Operating Income | $268.4M | $347.4M | −22.7% |
| Net Income | $174.3M | $164.5M | +6.0% |
CAG Revenue by Segment
When Does Conagra Brands Report Next?
Figures from SEC filings and company reports. Not investment advice.