Shares of Conagra Brands, Inc. (NYSE:CAG) declined 3.8% on Thursday after the company delivered weaker-than-expected fourth-quarter results and issued a subdued forecast for fiscal 2026.
For the quarter ended May, the Chicago-based packaged foods producer reported adjusted earnings per share of $0.56, below Wall Street’s consensus of $0.59. Revenue also came in lower than expected, falling 4.3% year-over-year to $2.78 billion, versus analyst estimates of $2.85 billion.
The company’s organic net sales slipped 3.5%, reflecting a 2.5% drop in volume and a 1% drag from unfavorable price/mix dynamics.
Looking ahead, Conagra’s fiscal 2026 outlook further weighed on sentiment. The company forecast adjusted EPS between $1.70 and $1.85, well below the $2.19 anticipated by analysts. Organic net sales growth is projected to range from -1% to 1%, with the adjusted operating margin expected between 11.0% and 11.5%.
“I’m proud of the Conagra team for their hard work throughout fiscal 2025 as we navigated an environment that proved to be more challenging than we anticipated,” said Sean Connolly, president and CEO of Conagra Brands. “While the second half was impacted by higher than expected inflation, foreign exchange headwinds, and supply constraints, our long-term value creation strategy remains unchanged.”
The company flagged persistent inflation and tariff-related cost pressures as key challenges heading into the new fiscal year. Management expects core inflation of roughly 4% and warned that newly implemented U.S. tariffs could increase cost of goods sold by around 3% annually before any cost-reduction measures are applied.
For the full fiscal 2025, Conagra posted net sales of $11.6 billion, down 3.6% year-over-year. Adjusted EPS fell 13.9% to $2.30. The company generated $1.7 billion in operating cash flow and reduced net debt by 4.4% to $8.0 billion.
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