It has been about a month since the last earnings report for Conagra Brands (CAG Quick QuoteCAG - Free Report) . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Conagra Brands due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Conagra Brands before we dive into how investors and analysts have reacted as of late.

Conagra Q1 Earnings Beat Estimates, Sales Decline 5.8% Y/Y

Conagra Brands posted first-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. However, both metrics declined year over year.

Conagra’s Quarterly Performance: Key Metrics and Insights

Conagra’s quarterly adjusted earnings per share (EPS) were 39 cents, which beat the Zacks Consensus Estimate of 33 cents. The bottom line declined 26.4% year over year.

The company generated net sales of $2,632.6 million, which declined 5.8% year over year but surpassed the Zacks Consensus Estimate of $2,609 million. The top-line decline resulted from a 5.1% unfavorable impact of M&A, a 0.6% decrease in organic net sales and 0.1% adverse currency movements.

Organic net sales decreased 0.6%, reflecting a 0.6% positive impact from price/mix, driven by favorable trade expense timing and product mix, offset by a 1.2% decline in volume. During the quarter, the company gained volume share in several categories, including frozen desserts, refrigerated whipped topping, hot dogs, pudding, canned tomatoes, and frozen multi-serve meals.

The adjusted gross profit declined 11.3% to $644 million, as productivity gains were outweighed by lower sales, cost inflation and lost profit from divested businesses. The adjusted gross margin contracted 153 basis points (bps) to 24.4%.

Adjusted SG&A expenses, excluding advertising and promotional costs, increased 1.5% year over year to $333 million, driven by higher incentive compensation.

Adjusted EBITDA (including equity method investment earnings and pension and post-retirement non-service income) was $441 million, down 16.4% year over year.

Decoding Conagra’s Segmental Performance

Grocery & Snacks: Quarterly net sales in the segment were $1,079.6 million, which was down 8.7% year over year. The decline was driven by a 7.7% adverse impact from M&A and a 1.0% drop in organic net sales. Within organic results, a 0.6% benefit from price/mix was more than offset by a 1.6% decline in volume.

Refrigerated & Frozen: Net sales decreased 0.9% year over year to $1,076.2 million. Results reflected a 1.1% headwind from M&A, partially offset by a 0.2% increase in organic net sales. Organic performance included a 0.3% decline from price/mix and a 0.5% increase in volume.

International: Net sales declined 18% year over year to $212.3 million. The decrease was attributable to a 13.2% unfavorable impact from M&A, a 3.5% decline in organic net sales, and a 1.3% drag from foreign exchange. Organic results reflected a 1.7% benefit from price/mix, offset by a 5.2% decline in volume.

Foodservice: Reported sales were $264.5 million, down 0.8% year over year. The decline included a 1.0% headwind from M&A, partly offset by a 0.2% increase in organic net sales. Organic results reflected a 3.8% benefit from price/mix, largely offset by a 3.6% decline in volume.

Conagra’s Financial Health Snapshot

The company exited the quarter with cash and cash equivalents of $698.1 million, senior long-term debt (excluding current installments) of $7,222.6 million and total stockholders’ equity of $8,915.8 million.

For the first quarter of fiscal 2026, Conagra generated $120.6 million in net cash flows from operating activities, with capital expenditures amounting to $146.8 million. The company generated a free cash flow of negative $26.2 million.

Conagra also declared a quarterly dividend of 35 cents per share, payable on Nov. 26, 2025, to its shareholders of record as of Oct. 30.

What to Expect From Conagra in FY26?

For fiscal 2026, the company still expects a negative 1% to positive 1% in organic net sales growth. The adjusted operating margin is anticipated between 11% and 11.5%, while adjusted earnings are forecasted between $1.70 and $1.85 per share, down from $2.30 in fiscal 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Conagra Brands has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.

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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Conagra Brands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Conagra Brands is part of the Zacks Food - Miscellaneous industry. Over the past month, Lamb Weston (LW Quick QuoteLW - Free Report) , a stock from the same industry, has gained 0.1%. The company reported its results for the quarter ended August 2025 more than a month ago.

Lamb Weston reported revenues of $1.66 billion in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $0.74 for the same period compares with $0.73 a year ago.

Lamb Weston is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of +3%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Lamb Weston. Also, the stock has a VGM Score of B.