Food industry mainstay Conagra Brands (CAG -1.48%) reported its fiscal first quarter of 2026 results early Wednesday morning, and the market found them tasty indeed. Investors rewarded the company with a more than 5% boost in its share price, a figure that easily topped the 0.3% increase of the bellwether S&P 500 (^GSPC -0.13%).
A busy quarter for the company
This was despite the fact that Conagra's net sales actually decreased notably in the frame. That metric declined by almost 6% year over year to $2.63 billion, which management attributed mainly to the negative impact of merger and acquisition activity. Still, that tally was slightly higher than the average analyst estimate of $2.62 billion.
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The dynamic was similar for non-GAAP (generally accepted accounting principles) adjusted net income. It fell by 25% to $189 million ($0.39 per share) for the period. Conagra chalked this up to factors such as that sales decrease, and the loss of profits from businesses it has sold. Nevertheless, that per-share figure topped the consensus pundit projection, which was $0.33.
Conagra has been quite the eager seller of assets lately. In June, it announced it had finalized its divestments of the storied Chef Boyardee canned pasta line (to Hometown Food), and the Van de Kamp's and Mrs. Paul's prepared comestibles brands to High Liner Foods.
Existing full-year guidance maintained
In its earnings release, Conagra also reiterated its guidance for the entirety of fiscal 2026. The company continues to expect a 1% decline to a 1% increase in organic net sales growth compared to 2025, and adjusted earnings per share ranging from $1.70 to $1.85.
