Conagra Brands has reported a net loss for the second quarter of fiscal 2026, as lower volumes, inflationary costs and a large non-cash impairment charge weighed on performance across its portfolio.
The US packaged food group said net sales fell 6.8% compared with last year to $3.0 billion in the quarter ended 23 November 2025. Organic net sales declined 3.0%, reflecting flat pricing and a 3.0% fall in volumes.
Conagra posted a reported diluted loss per share of $1.39, compared with a profit a year earlier. The loss was mainly linked to $968 million in non-cash goodwill and brand impairment charges. On an adjusted basis, earnings per share were $0.45.
Adjusted operating margin for the quarter came in at 11.3%, down sharply year on year, reflecting lower sales, higher cost of goods sold and the impact of divestments.
Despite the weak headline numbers, the company reaffirmed its full-year outlook. For fiscal 2026, Conagra continues to expect organic net sales to range between a 1% decline and 1% growth, with adjusted operating margin of around 11.0% to 11.5% and adjusted EPS between $1.70 and $1.85.
Category And Segment Performance
In Grocery & Snacks, net sales fell 8.5% to $1.2 billion. Organic sales declined 1.5%, as volume weakness offset modest price gains. The segment still recorded volume share gains in several snack categories, including ready-to-eat popcorn and seeds.
Refrigerated & Frozen sales declined 6.5% to $1.3 billion, with organic net sales down 5.1% on lower volumes and unfavourable mix. The segment recorded a reported operating loss due to impairment charges, while adjusted operating profit fell more than 35%.
International sales were down 5.4% to $230 million, as volume declines outweighed pricing and currency benefits. Foodservice was more resilient, with sales down just 1.3% and organic net sales slightly positive, supported by higher pricing.
Across the group, Conagra said retailer purchasing patterns also affected results, with changes in the timing of merchandising events and inventory builds creating a headwind late in the quarter. This is a familiar challenge for many US FMCG suppliers supplying large supermarket chains.
Cost Pressures And Outlook
Cost inflation remains a key issue. Conagra expects cost of goods sold inflation to remain elevated in fiscal 2026, with total inflation around 7%. The company also flagged the expected impact of US tariffs on inputs such as tin plate steel and aluminium, adding further pressure to margins in the US packaged food market.
Net debt stood at $7.6 billion at quarter end, down 10% year on year, with a net leverage ratio of 3.83x.
For US supermarkets, the results underline the continued pressure on branded food suppliers as volumes remain weak and pricing power becomes harder to sustain. While Conagra is maintaining its full-year guidance, the performance highlights the fragile balance between promotions, pricing and margin recovery across the US grocery landscape.
Editor’s note: This article is based on Conagra Brands’ official Q2 FY2026 earnings release and financial statements.
