Conagra Brands reports first-quarter net sales of $2.6 billion

Conagra Brands, Inc. (CAG) said Tuesday in a regulatory filing that net sales for the first quarter of fiscal year 2027 decreased 1.4% to $2.6 billion compared to the prior-year period.

The quarter ended on August 30, 2026. Reported diluted earnings per share were $0.36, representing a 5.9% increase from $0.34 a year earlier. Adjusted earnings per share rose 5.1% to $0.41 compared to $0.39 a year earlier.

Here's how the company did:

• Revenue: $2.59 billion vs. $2.63 billion a year earlier
• Operating profit: $268.4 million vs. $347.4 million a year earlier
• Net income: $174.3 million vs. $164.5 million a year earlier
• Diluted EPS: $0.36 vs. $0.34 a year earlier

President and Chief Executive Officer John Brase said in a press release, "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."

Gross profit decreased 3.4% to $619 million in the quarter. Selling, general, and administrative expenses increased 4.4% to $350 million. The company reported a net cash usage in operating activities of $4 million, compared to $121 million generated in the prior year period.

Net debt at the end of the quarter was $7.4 billion, down $193 million from the prior year period. The company ended the quarter with a 3.99x net leverage ratio.

The company reaffirmed its fiscal 2027 guidance, expecting an organic net sales change of (3)% to (1)%, an adjusted operating margin between 10.0% and 10.5%, and adjusted EPS between $1.40 and $1.50.