Conagra Brands (NYSE:CAG) Announces Earnings Results

Conagra Brands (NYSE:CAG) released its quarterly earnings data on Friday. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.01, FiscalAI reports. Conagra Brands had a net margin of 7.42% and a return on equity of 11.72%. The company had revenue of $2.98 billion during the quarter, compared to the consensus estimate of $3 billion. During the same period in the previous year, the firm earned $0.70 earnings per share. Conagra Brands’s revenue for the quarter was down 6.8% on a year-over-year basis. Conagra Brands updated its FY 2026 guidance to 1.700-1.85 EPS.

Here are the key takeaways from Conagra Brands’ conference call:

• Management said they see December shipment momentum and expect organic net sales growth in the second half, and advised modeling adjustments to reflect a different Q3/Q4 mix.
• The company has largely reclaimed frozen market share (single-serve meals ~53%) and plans stronger promotional, advertising, and innovation support in the back half to sustain that recovery.
• Snacks are showing robust growth (near mid-single digits) aided by C‑store recovery and upcoming marketing/innovation, which management views as a durable growth driver.
• Q3 operating margin is expected to be below Q2 due to AMP exceeding 3% of sales, higher SG&A as a percentage of sales, and absorption headwinds from deliberate inventory reductions.
• Management launched Project Catalyst to reengineer core processes with technology/AI — they expect costs to complete and future returns, and will provide more details in calendar 2026.

Conagra Brands Stock Performance

CAG stock opened at $17.35 on Friday. The company has a market cap of $8.30 billion, a P/E ratio of 9.86 and a beta of -0.01. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.06 and a quick ratio of 0.44. The stock’s fifty day moving average price is $17.65 and its 200-day moving average price is $18.99. Conagra Brands has a 1 year low of $16.60 and a 1 year high of $28.51.

Conagra Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Tuesday, January 27th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 8.1%. The ex-dividend date of this dividend is Tuesday, January 27th. Conagra Brands’s payout ratio is 79.55%.

Analyst Ratings Changes

CAG has been the topic of several research analyst reports. Zacks Research upgraded shares of Conagra Brands from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 2nd. JPMorgan Chase & Co. lowered their target price on Conagra Brands from $20.00 to $19.00 and set a “neutral” rating for the company in a research note on Tuesday. The Goldman Sachs Group reduced their price target on Conagra Brands from $18.00 to $16.00 and set a “sell” rating on the stock in a research note on Monday, November 24th. Wells Fargo & Company lowered their price objective on Conagra Brands from $20.00 to $19.00 and set an “equal weight” rating for the company in a research report on Friday, December 12th. Finally, Evercore ISI dropped their price target on Conagra Brands from $24.00 to $23.00 and set an “in-line” rating on the stock in a research report on Wednesday, September 24th. One analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $20.25.

Key Headlines Impacting Conagra Brands

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Board approved a $0.35 quarterly dividend (7.9% yield), supporting income investors and providing a floor for the stock. Dividend Announcement
• Neutral Sentiment: Q2 reported EPS was $0.45, narrowly beating the consensus $0.44, but revenue was $2.98B (below the ~$3.0B estimate) — a mixed print that removes upside surprise but avoids a clear miss. Quarterly Results
• Neutral Sentiment: Management maintained full‑year sales and profit forecasts, signaling confidence in the plan despite near‑term pressure. That stability is neutral — it prevents a pessimistic reset but offers limited upside. Reuters: Maintains Forecasts
• Negative Sentiment: Company took a large $968M impairment in Q2, weighing on reported results and investor sentiment; such charges can raise questions about portfolio strength and near‑term cash flow optics. MSN: $968M Impairment
• Negative Sentiment: Organic net sales declined (~3%) and total revenue fell ~6.8% year‑over‑year, reflecting softer volumes as consumers pull back — a demand weakness that could pressure margins and growth expectations. Zacks: Sales Decline
• Negative Sentiment: The firm set FY‑2026 EPS guidance at $1.70–$1.85 (slightly below street consensus ~ $1.81) and some analysts have trimmed targets (JPMorgan lowered its price target), which adds downward pressure on the stock. Analyst PT Cut

Insider Buying and Selling

In other Conagra Brands news, SVP Melissa C. Napier sold 13,011 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $17.19, for a total transaction of $223,659.09. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.57% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Conagra Brands

Hedge funds have recently made changes to their positions in the company. EP Wealth Advisors LLC boosted its stake in Conagra Brands by 3.3% during the second quarter. EP Wealth Advisors LLC now owns 23,984 shares of the company’s stock valued at $491,000 after buying an additional 772 shares during the last quarter. Public Employees Retirement System of Ohio raised its holdings in shares of Conagra Brands by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 148,681 shares of the company’s stock worth $2,722,000 after acquiring an additional 922 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of Conagra Brands by 4.2% during the 1st quarter. NewEdge Advisors LLC now owns 23,541 shares of the company’s stock valued at $628,000 after acquiring an additional 954 shares during the last quarter. Scotia Capital Inc. grew its holdings in shares of Conagra Brands by 1.3% in the third quarter. Scotia Capital Inc. now owns 74,317 shares of the company’s stock valued at $1,361,000 after purchasing an additional 970 shares in the last quarter. Finally, CYBER HORNET ETFs LLC bought a new stake in Conagra Brands in the second quarter worth $26,000. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.