Conagra Brands Reports 6.8% Decline in Net Sales and $663.6 Million Net Loss for Q2 Fiscal 2026

Conagra Brands, Inc. reported a significant decline in financial performance for the second quarter of fiscal 2026, ending November 23, 2025. The company recorded net sales of $2,979.1 million, a decrease of 6.8% from $3,195.1 million in the same period last year. For the first half of the fiscal year, net sales totaled $5,611.7 million, down 6.3% from $5,990.0 million. The company experienced a net loss of $663.6 million, compared to a net income of $284.5 million in the prior year, resulting in a diluted loss per share of $1.39, compared to earnings of $0.59 per share in the previous year.

The decline in revenue and profitability was attributed to several factors, including lower organic sales across key segments, particularly in Grocery & Snacks and Refrigerated & Frozen, as well as the impact of divestitures. The company noted that the divestiture of its Chef Boyardee business and frozen fish brands contributed to the decrease in sales figures. Additionally, Conagra Brands recognized substantial impairment charges totaling $968.3 million, primarily related to goodwill and intangible assets, which significantly impacted the bottom line.

Strategically, Conagra has been active in acquisitions and divestitures. In July and August 2024, the company acquired a contract manufacturer for cooking spray products and Sweetwood Smoke & Co., respectively, for a total cash outlay of approximately $230.6 million. These acquisitions are expected to enhance Conagra's product offerings in the Grocery & Snacks segment. Conversely, the company completed the sale of its Chef Boyardee business for $607 million and its frozen fish business for $41.9 million, which were classified as assets held for sale prior to the transactions.

Operationally, Conagra's total employee headcount remained stable, but the company faced challenges with inventory management, leading to higher inventory balances due to inflationary pressures. The company reported a decrease in segment operating profit across all four reporting segments, with the Grocery & Snacks segment experiencing a 21.8% decline in operating profit. The company also noted a decrease in equity method investment earnings, which fell to $32.2 million from $48.5 million year-over-year.

Looking ahead, Conagra Brands anticipates continued challenges from inflation, supply chain pressures, and weak consumer sentiment, which may impact sales volumes. The company plans to implement pricing actions and productivity initiatives to mitigate these challenges. Management remains focused on evaluating the macroeconomic environment and adjusting strategies accordingly to improve financial performance in the upcoming quarters.