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To read Conagra Brands’ earnings report, separate three things: sales growth from unit volume and price/mix, reported profit from the company’s adjusted measures, and accounting earnings from cash generated after capital spending. In the latest available release, for the 13 weeks ended August 30, 2026, Conagra reported $2.6 billion in net sales, down 1.4%, and negative $127.9 million in free cash flow. The sales mix and cash-flow statement add important context to those headline figures.
This guide uses Conagra’s September 30, 2026 Q1 FY2027 release and its FY2026 results, released July 15, 2026. Fiscal quarters and years do not necessarily align with calendar periods.
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Start with the fiscal period and reported results
Before interpreting a percentage, confirm the period it covers and its comparison. Conagra’s Q1 FY2027 covered the 13 weeks ended August 30, 2026; the results were released September 30, 2026. Its FY2026 results were released July 15, 2026.
Q1 FY2027 net sales were $2.6 billion, down 1.4% from the prior-year quarter. Diluted earnings per share (EPS) were $0.36, up 5.9%, while adjusted EPS was $0.41, up 5.1%. EPS growth by itself does not establish that demand improved: margins, expenses, interest, taxes, share count and unusual items also affect earnings per share. Conagra reported a weighted average diluted share count of 480 million for the quarter. See the Conagra financial reports and filings page for company releases and filings.
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How do I read Conagra’s sales figures?
Keep reported sales and organic sales distinct
Reported net sales are the company’s financial-statement measure. Organic net sales are a company-defined non-GAAP comparison that excludes foreign-exchange effects, acquired and divested businesses, and a 53rd week when applicable. Organic sales can make year-over-year operating trends easier to compare, but they do not replace reported sales; look at both and consult the release’s reconciliation.
In Q1 FY2027, reported net sales fell 1.4%, while organic net sales fell 1.1%. Those percentages differ because they answer different questions: reported sales reflect the amounts recognized in the period, while organic sales remove the specified currency, portfolio and calendar effects.
Break organic sales into volume and price/mix
Conagra’s Q1 organic-sales decline comprised a positive 1.0% contribution from price/mix and a 2.1% decline in volume. That means price/mix cushioned the effect of fewer units sold. Price/mix combines pricing and changes in product or customer mix; it is not a pure measure of price increases.
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Segment results show why a company-wide figure can conceal different patterns:
| Q1 FY2027 segment | Organic sales change | Price/mix | Volume | Reading the result |
|---|---|---|---|---|
| Grocery & Snacks | −2.0% | +3.4% | −5.4% | Positive price/mix was outweighed by lower volume. |
| Refrigerated & Frozen | −1.6% | −1.5% | −0.1% | Both price/mix and volume declined. |
| International | +0.9% | +1.6% | −0.7% | Positive price/mix more than offset lower volume. |
| Foodservice | +3.3% | +0.8% | +2.5% | Volume growth benefited by about 150 basis points from customer orders that occurred in the third quarter last year. |
That Foodservice timing effect matters: the quarter’s reported volume growth should not be treated as a run rate without accounting for the order timing noted by Conagra.
Account for the extra week in annual comparisons
FY2026 had 53 weeks, compared with 52 weeks in FY2025. Conagra’s organic-sales measure excludes the extra week, along with currency and acquired or divested businesses; reported sales do not. In FY2026, reported sales declined 2.9%, while organic sales declined 0.4%. The two measures therefore describe different comparisons, not conflicting results.
Why is Conagra’s adjusted margin different from its reported margin?
Read gross margin before operating margin
Gross margin reflects sales less the cost of goods sold as a share of sales. In Q1 FY2027, reported gross margin was 23.8%, down 50 basis points year over year; adjusted gross margin was also 23.8%, down 62 basis points. Conagra cited lower organic sales, cost-of-goods-sold inflation and unfavorable operating leverage as pressures on gross profit. Productivity and approximately $4 million in tariff refunds partly offset those pressures.
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Treat adjusted results as a companion, not a substitute
Conagra says its adjusted measures remove items it considers significant and not indicative of core results. That is the company’s framework, not proof that excluded charges or gains are economically irrelevant. Review what was excluded, how large it was, and whether similar items recur. The company provides its definitions and reconciliations in the Q1 FY2027 results release and FY2026 results release.
FY2026 demonstrates the scale adjustments can reach: reported operating margin was negative 14.4%, while adjusted operating margin was 11.3%. Conagra attributed the reported result primarily to non-cash goodwill and brand impairment charges. Reported diluted loss per share was $4.00; adjusted EPS was $1.72. The adjusted figure helps assess results under the company’s chosen exclusions, but it does not erase the GAAP loss.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How do Conagra’s earnings compare with its cash flow?
Begin with operating cash flow
Net cash from operating activities starts with net income and adjusts for non-cash expenses and changes in operating assets and liabilities. It can therefore move differently from earnings in a given quarter. In Q1 FY2027, Conagra used $4.2 million of cash in operating activities, versus generating $120.6 million in Q1 FY2026. The company cited lower operating profit and higher litigation payments, net of recoveries, as the principal drivers of the decline. Its cash-flow statement also shows movements in inventories, accrued payroll and litigation accruals; these working-capital and payment-timing items help explain the difference between accounting results and cash.
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Conagra defines free cash flow as net cash from operating activities less additions to property, plant and equipment (capital expenditures, or capex). For Q1 FY2027, the calculation was −$4.2 million of operating cash flow minus $123.7 million of capex, or −$127.9 million of free cash flow. In Q1 FY2026, operating cash flow was $120.6 million and capex was $146.8 million, producing negative $26.2 million in free cash flow. Free cash flow is a non-GAAP measure with this company-defined calculation, not a standardized replacement for operating cash flow.
Use the full year to judge cash trends
Annual figures reduce the risk of drawing a broad conclusion from one quarter’s cash timing. Conagra reported the following amounts:
| Fiscal year | Operating cash flow | Capital expenditures | Free cash flow |
|---|---|---|---|
| FY2026 (53 weeks) | $1,402.1 million | $423.4 million | $978.7 million |
| FY2025 (52 weeks) | $1,691.9 million | $389.3 million | $1,302.6 million |
Conagra attributed the lower FY2026 operating cash flow principally to lower operating profit and the prior-year accelerated receipt of some outstanding receivables, partly offset by favorable inventory management. The extra week in FY2026 is also relevant calendar context when comparing annual periods.
How should you read the guidance and debt figures?
Conagra reaffirmed the following FY2027 outlook in its Q1 release. These are management’s forward-looking estimates, not reported results or guaranteed outcomes.
| FY2027 measure | Management guidance |
|---|---|
| Organic net sales change | −3% to −1% |
| Adjusted operating margin | 10.0%–10.5% |
| Adjusted EPS | $1.40–$1.50 |
| Capital expenditures | Approximately $550 million |
| Free-cash-flow conversion | Above 90% |
| Year-end net leverage | Around 4.0x |
At the end of Q1 FY2027, net debt was $7.4 billion and net leverage was 3.99x. Those are quarter-end figures; the around-4.0x figure is management’s year-end assumption. Keeping the dates and labels attached prevents a forecast from being mistaken for an achieved result.
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