It has been about a month since the last earnings report for Lamb Weston (LW Quick QuoteLW - Free Report) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Lamb Weston due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Lamb Weston before we dive into how investors and analysts have reacted as of late.

Lamb Weston’s Q1 Earnings Beat Estimates, Volume Rises 6% Y/Y

Lamb Weston reported solid first-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals.

Lamb Weston’s adjusted earnings were 74 cents per share, beating the Zacks Consensus Estimate of 54 cents. The decrease of 5% was due to elevated income tax expense and reduced equity method investment earnings, partially offset by increased adjusted income from operations.

Net sales amounted to $1,659.3 million, beating the Zacks Consensus Estimate of $1,616 million. The top line increased $5.2 million year over year.

Lamb Weston’s Quarterly Results: Key Metrics & Insights

On a constant-currency basis, sales dipped 1%, as solid 6% volume growth was outweighed by a 7% drop in price/mix. Volume growth was driven by customer wins and retention, particularly in North America and Asia, and the lapping of a $15 million charge in the last quarter related to a voluntary product withdrawal.

The decline in price/mix reflected the carryover impact of fiscal 2025 price and trade investments to support customers, ongoing price and trade support, and negative channel product mix across segments.

Adjusted gross profit fell $14.2 million from the prior year, landing at $338.9 million, with weaker price/mix serving as the main drag. This headwind was partially offset by elevated sales volumes, reduced manufacturing costs per pound resulting from cost savings initiatives, and the benefit of lapping a $39 million charge in the prior year related to a voluntary product withdrawal.

Adjusted selling, general and administrative (SG&A) expenses fell $24 million year over year, totaling $132.4 million, supported by cost-savings measures and $7.3 million in miscellaneous income, largely from an insurance recovery and property tax refunds.

Adjusted EBITDA rose $2.8 million year over year, reaching $302.2 million. This growth was driven by reduced adjusted SG&A expenses, partially offset by a decline in adjusted gross profit and equity method investment earnings (loss).

Lamb Weston Provides Q1 Insights by Segment

Net sales for the North America segment, which covers customers in the United States, Canada and Mexico, were down 2%, reaching $1,084.6 million compared with the prior-year quarter. Volume rose 5%, driven by recent customer contract wins and broad-based growth across channels.

The price/mix of the segment fell 7%, reflecting the carryover impact of fiscal 2025 price investments, ongoing customer support through price and trade, and negative channel mix. The North America segment’s adjusted EBITDA declined by $18 million to $260 million.

Net sales for the International segment, which includes all customers outside North America, grew 4% to $574.7 million, including a favorable $24.5 million from foreign currency translation. At constant currency, net sales were flat. Volume grew 6%, driven by strength in Asia and with multinational chain customers.

The price/mix of the segment declined 6% due to investments to support customers and ongoing price and trade support. International segment adjusted EBITDA rose by $5.8 million to $57.2 million.

Lamb Weston’s Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $98.6 million, long-term debt and financing obligations (excluding the current portion) of $3,670.9 million and total shareholders’ equity of $1,789.8 million.

The company generated $352 million as net cash from operating activities for the 13 weeks ending Aug. 24, 2025, wherein capital expenditures, net of proceeds from blue chip swap transactions, amounted to $79.2 million.

In the first quarter of fiscal 2026, Lamb Weston returned $51.7 million to its shareholders through cash dividends. The company repurchased 187,259 shares of its common stock for $10.4 million under its share repurchase program. Approximately $348 million remains authorized and available for future repurchases.

Lamb Weston also declared a quarterly dividend of 37 cents per share, payable on Nov. 28, 2025, to its stockholders of record as of Oct. 31.

What to Expect From Lamb Weston in FY26?

The company expects net sales at constant currency in the range of $6.35 billion to $6.55 billion and adjusted EBITDA of $1.00 billion to $1.20 billion. Capital expenditures are expected to total approximately $500 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 12.57% due to these changes.

VGM Scores

At this time, Lamb Weston has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lamb Weston has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.