Conagra Brands reported results for the second quarter of fiscal year 2026, which ended on November 23, 2025, showing weaker sales and profitability alongside significant non-cash impairment charges. Unless otherwise noted, all comparisons are to the same period a year earlier.
Reported net sales declined 6.8%, while organic net sales fell 3.0%. The company recorded a reported operating margin of negative 20.1%, reflecting substantial goodwill and brand impairment charges. On an adjusted basis, operating margin was 11.3%. Conagra posted a reported diluted loss per share of USD 1.39, largely driven by the non-cash charges, while adjusted earnings per share totaled USD 0.45.
Despite the quarterly results, Conagra reaffirmed its guidance for fiscal 2026. The company continues to expect organic net sales to range from a decline of 1% to growth of 1% compared with fiscal 2025. Adjusted operating margin is projected to fall between approximately 11.0% and 11.5%, with adjusted earnings per share expected to range from USD 1.70 to USD 1.85.
Performance in the Refrigerated & Frozen segment weighed on overall results. Segment net sales declined 6.5% to USD 1.3 billion during the quarter. Organic net sales fell 5.1%, while the impact of mergers and acquisitions reduced sales by an additional 1.4%. The organic decline reflected a 2.1% decrease in price and mix and a 3.0% decline in volume.
The segment reported an operating loss of USD 832 million, driven by the same non-cash goodwill and brand impairment charges affecting the broader company. On an adjusted basis, operating profit in Refrigerated & Frozen fell 35.6% to USD 128 million. Productivity gains were more than offset by lower organic net sales, continued cost-of-goods-sold inflation, unfavorable operating leverage and the loss of profit from divested businesses.
Overall, the quarter underscored ongoing pressure on volumes and margins, particularly in Conagra’s Refrigerated & Frozen portfolio, even as the company maintained confidence in its full-year financial targets.
Find out more at: https://www.conagra.com