Conagra Brands Inc. reported first-quarter fiscal 2026 results exceeding Wall Street’s expectations but showed year-over-year declines. Net sales were $2.63 billion, down 5.8%, with adjusted earnings per share of 39 cents falling 26.4%. Wall Street expected sales of $2.62 billion and earnings of 33 cents per share.

The company’s diverse portfolio includes popular food products like Birds Eye, Healthy Choice, and Slim Jim. Cash and cash equivalents at the end of the quarter were $698.1 million. President and CEO Sean Connolly noted the focus on disciplined execution and balanced capital allocation despite ongoing challenges.

Segment results showed weaknesses, with Grocery & Snacks revenue falling 8.7%, Refrigerated & Frozen sales slipping 0.9%, International segment revenue dropping 18%, and Foodservice sales dipping 0.8%. For fiscal 2026, Conagra reaffirmed guidance with projected organic net sales growth between -1% and 1%.

The company’s outlook includes continued cost inflation and tariffs, with core inflation slightly above 4%. Tariff assumptions involve duties on imported steel and aluminum, as well as country-specific rates. Conagra plans to offset these pressures through cost savings, alternative sourcing, and targeted pricing strategies.

Conagra Brands’ shares were trading higher by 3.56% to $18.96 at last check. The company remains focused on navigating challenges to achieve its fiscal 2026 guidance, aiming for growth amidst inflationary pressures and cautious consumer sentiment.

Read more at Yahoo Finance: Conagra Reaffirms Outlook Even As Tariffs Add To Inflation