Packaged foods company Conagra Brands (NYSE: CAG) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 3.6% year on year to $2.88 billion. Its non-GAAP profit of $0.47 per share was 2.8% above analysts’ consensus estimates.
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Conagra (CAG) Q2 CY2026 Highlights:
- Revenue: $2.88 billion vs analyst estimates of $2.89 billion (3.6% year-on-year growth, in line)
- Adjusted EPS: $0.47 vs analyst estimates of $0.46 (2.8% beat)
- Adjusted EBITDA: $484.4 million vs analyst estimates of $457.5 million (16.8% margin, 5.9% beat)
- Adjusted EPS guidance for the upcoming financial year 2027 is $1.45 at the midpoint, missing analyst estimates by 8.3%
- Operating Margin: -57.5%, down from 11.5% in the same quarter last year
- Free Cash Flow Margin: 13.8%, up from 9.4% in the same quarter last year
- Organic Revenue was flat year on year
- Sales Volumes fell 1.6% year on year, in line with the same quarter last year
- Market Capitalization: $6.77 billion
Company Overview
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $11.28 billion in revenue over the past 12 months, Conagra is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. To accelerate sales, Conagra likely needs to optimize its pricing or lean into new products and international expansion.
As you can see below, Conagra’s revenue declined by 2.8% per year over the last three years as consumers bought less of its products.
This quarter, Conagra grew its revenue by 3.6% year on year, and its $2.88 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to decline by 1.5% over the next 12 months, similar to its three-year rate. it’s hard to get excited about a company that is struggling with demand.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
To analyze whether Conagra generated its growth (or lack thereof) from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.
Over the last two years, Conagra’s average quarterly volumes have shrunk by 1.5%. This isn’t ideal for a consumer staples company, where demand is typically stable. In the context of its 1.7% average organic sales declines, we can see that most of the company’s losses have come from fewer customers purchasing its products.
In Conagra’s Q2 2026, sales volumes dropped 1.6% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.
Key Takeaways from Conagra’s Q2 Results
We enjoyed seeing Conagra beat analysts’ EBITDA expectations this quarter. On the other hand, its full-year EPS guidance missed. Overall, this quarter could have been better. The stock traded down 2.6% to $13.78 immediately following the results.
The latest quarter from Conagra’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
