The EPS beat is overshadowed by continued organic sales decline and reaffirmed guidance that implies no acceleration. Watch for volume trends in Q2 to see if the volume decline is stabilizing; the back-half ramp implied by guidance is priced in.
Price Chart
Executive Summary
Conagra Brands reported Q1 FY2027 adjusted EPS of $0.41, a 5.1% YoY increase and a 19.2% beat vs consensus of $0.34, driven by lower adjusted SG&A and higher equity earnings. However, reported net sales declined 1.4% YoY (organic -1.1%) on continued volume weakness, and gross margins contracted 62 bps. The company reaffirmed its full-year FY2027 guidance for organic sales decline of (3)% to (1)%, adjusted operating margin of 10.0%-10.5%, and adjusted EPS of $1.40-$1.50, which implies a back-half ramp. The EPS beat is notable but the top-line decline and reaffirmed guidance cap the upside.
Key Financial Metrics
Key Facts
- Q1 FY2027 adjusted EPS of $0.41 vs consensus $0.34 (+19.2% beat)
- Reported net sales of $2.60B declined 1.4% YoY; organic net sales declined 1.1%
- Gross margin contracted 62 bps to 23.8% on an adjusted basis
- Adjusted operating margin of 11.5% was down 33 bps YoY
- Reaffirmed FY2027 guidance: organic sales (3)% to (1)%, adj. operating margin 10.0%-10.5%, adj. EPS $1.40-$1.50
- Net debt of $7.4B with net leverage of 3.99x; free cash flow was negative ($128M) in the quarter
- Dividend was reduced to an annualized $0.70/share in the prior quarter (July 8-K
Financial Impact
EPS beat consensus by $0.07/share on $0.41 vs $0.34 consensus; revenue miss of ~$320M vs $2.92B consensus
Risk Factors
- Organic sales declining for four consecutive quarters
- Volume decline of 2.1% in Q1, driven by Grocery & Snacks volume -5.4%
- Gross margin compression 62 bps contraction
- Negative free cash flow of $128M in Q1 vs -$26M prior year
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000023217-26-000052 |
| Document: tmb-20260930x8k.htm | 0000023217-26-000052 |
| Document: 0000023217-26-000052-index-headers.html | 0000023217-26-000052 |
| Document: 0000023217-26-000052-index.html | 0000023217-26-000052 |
| Document: 0000023217-26-000052.txt | 0000023217-26-000052 |
| 8-K Data (Synthetic) | 0000023217-26-000052 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | Institutional Cluster | $14.86 | awaiting T+60 | — | $14.24 (−4.17%) |
Sep 30, 2026 27d ago | 8-K | $13.44 | awaiting T+60 | — | $14.24 (+5.95%) |
Sep 30, 2026 27d ago | Press Release | $13.44 | awaiting T+60 | — | $14.24 (+5.95%) |
Sep 24, 2026 4w ago | Press Release | $14.67 | awaiting T+60 | — | $14.24 (−2.93%) |
Aug 11, 2026 11w ago | DEFA14A | $14.93 | awaiting T+60 | — | $14.24 (−4.62%) |
Aug 7, 2026 11w ago | Institutional Cluster | $15.10 | awaiting T+60 | — | $14.24 (+5.67%) |
Jul 28, 2026 13w ago | 8-K | $15.43 $14.04 | ▼ −9.01% | ▼ −13.36% | $14.24 (−7.71%) |
Jul 28, 2026 13w ago | 8-K | $15.43 $14.04 | ▼ −9.01% | ▼ −13.36% | $14.24 (−7.71%) |
Jul 21, 2026 14w ago | Insider Buy | $14.83 $14.18 | ▼ −4.38% | ▼ −7.64% | $14.24 (−3.98%) |
Jul 21, 2026 14w ago | 424B5 | $14.85 $13.70 | ▲ +7.74% | ▲ +11.72% | $14.24 (+4.11%) |
US Market Status
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