Conagra Brands Swings to $299.3M Loss in Nine Months as Impairment Charges Hit $976.5M

Conagra Brands Inc. (NYSE: CAG), a packaged foods company, reported a net loss of $299.3 million for the 39 weeks ended February 22, 2026, reversing from a profit of $896.4 million in the prior-year period. The loss stemmed from $976.5 million in asset impairment charges, including $771.3 million in goodwill impairments and $197.0 million in other intangible asset impairments. Read more earnings reports.

Net sales for the 39-week period fell 4.9% to $8.40 billion from $8.83 billion a year earlier. Cost of goods sold declined to $6.41 billion from $6.53 billion, while gross profit dropped 13.1% to $1.99 billion from $2.30 billion.

Operating profit for the nine-month period collapsed to $29.9 million from $1.04 billion, weighed down by the impairment charges and a $29.5 million loss on divestitures compared to a $42.2 million gain in the prior year. Selling, general and administrative expenses fell to $1.04 billion from $1.20 billion.

For the 13 weeks ended February 22, 2026, Conagra reported net income of $199.8 million, up 37.7% from $145.1 million in the year-earlier quarter. Net sales in the quarter declined 1.9% to $2.79 billion from $2.84 billion, while operating profit rose to $280.1 million from $239.4 million.

Interest expense for the 39-week period fell to $282.9 million from $314.9 million, while equity method investment earnings declined to $98.1 million from $125.0 million. The company recorded income tax expense of $162.7 million despite the pre-tax loss, compared to a tax benefit of $33.5 million in the prior year.

Diluted loss per share for the nine months came to $0.63, versus diluted earnings per share of $1.87 a year earlier. The company paid dividends of $502.2 million in both periods, maintaining a quarterly dividend of $0.35 per share.

Operating cash flow for the 39 weeks totaled $895.6 million, down from $1.35 billion in the prior year. The company spent $314.2 million on capital expenditures and generated $648.9 million from divestitures. Conagra repaid $1.03 billion in long-term debt and issued $1.00 billion in new long-term debt during the period.

The company's balance sheet showed total assets of $19.21 billion as of February 22, 2026, down from $20.93 billion at May 25, 2025. Goodwill declined to $9.73 billion from $10.50 billion, while brands, trademarks and other intangibles fell to $2.19 billion from $2.42 billion. Total stockholders' equity dropped to $8.16 billion from $8.93 billion.

Cash and cash equivalents stood at $55.1 million, down from $68.0 million at the fiscal year-end. Total debt declined to $7.33 billion from $8.07 billion, including $777.1 million in current installments and $98.2 million in notes payable.

Financial Summary

13 Weeks Ended (in millions, except per share)