Conagra Brands, Inc. (CAG) Q1 FY2027 earnings

Reported results

• Reported net sales decreased 1.4% to $2,595.9 million; organic net sales decreased 1.1%, driven by 1.0% positive price/mix impact offset by 2.1% volume decrease
• Reported operating margin was 10.3%; adjusted operating margin was 11.5%, down 33 basis points year-over-year
• Reported diluted EPS was $0.36, a 5.9% increase; adjusted diluted EPS was $0.41, a 5.1% increase
• Adjusted EBITDA increased 2.4% to $451 million in the quarter
• Net debt decreased $193 million to $7,388.5 million, resulting in net leverage ratio of 3.99x
• Free cash flow was negative $127.9 million compared to negative $26.2 million in prior year period

Guidance

• Organic net sales change of (3)% to (1)% compared to fiscal 2026
• Adjusted operating margin between 10.0% and 10.5%
• Adjusted EPS between $1.40 and $1.50
• Equity earnings contribution of approximately $140 million
• Pension income of approximately $25 million
• Interest expense of approximately $360 million
• Adjusted effective tax rate of approximately 24%
• Capital expenditures of approximately $550 million
• Free cash flow conversion of greater than 90%
• Net leverage ratio at fiscal year end of approximately 4.0x

Notes

The company reaffirmed fiscal 2027 guidance. Prior year period was affected by divestitures of Chef Boyardee and frozen seafood businesses, which impacted the effective tax rate (43.1% in Q1 FY26 vs. 25.2% in Q1 FY27). The adjusted effective tax rate was 24.8% in Q1 FY27 compared to 25.0% in Q1 FY26.

Price and volatility reaction

The stock moved -4.9% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -4.3 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-30 (8-K, Item 2.02). Read the original filing on sec.gov.