Lamb Weston Net Income Drops 63% to $54M in Q3 FY2026

Lamb Weston Holdings, Inc. (NYSE: LW), a producer of frozen potato products, reported net income of $54 million for the quarter ending February 22, 2026, down 63% from $146 million in the same quarter a year earlier. Diluted earnings per share fell to $0.39 from $1.03. Read more earnings reports.

Revenue for the quarter rose 2.9% to $1.56 billion from $1.52 billion in the prior-year period. Cost of goods sold climbed 12.3% to $1.23 billion, compressing gross profit by 21.5% to $331.6 million from $422.5 million.

Operating income for the quarter dropped 49.1% to $126.6 million from $248.7 million a year earlier. The company recorded income tax expense of $30.3 million, down from $57.5 million in the prior-year quarter.

Nine-Month Performance

For the nine months ending February 22, 2026, Lamb Weston reported net income of $180.4 million, down 24% from $237.3 million in the first nine months of fiscal 2025. Revenue for the nine-month period increased 1.4% to $4.84 billion from $4.78 billion.

Operating income for the nine-month period declined 11.9% to $422.3 million from $479.3 million. The company's diluted earnings per share for the nine months stood at $1.29, compared to $1.66 in the prior-year period.

Cash Flow and Balance Sheet

Cash from operations for the nine months totaled $595.6 million, up 22.7% from $485.3 million in the prior-year period. Cash used in investing activities decreased to $238 million from $559 million, while cash used in financing activities totaled $374.1 million compared to cash provided by financing of $69.4 million a year earlier.

Total assets stood at $7.39 billion as of February 22, 2026, essentially flat from $7.39 billion as of May 25, 2025. Cash and cash equivalents declined to $57.5 million from $70.7 million at the end of fiscal 2025. Inventory increased to $1.09 billion from $1.04 billion.

Total stockholders' equity rose to $1.83 billion from $1.74 billion. Goodwill increased to $1.14 billion from $1.09 billion. The company had 139 million shares outstanding as of February 22, 2026, down from 139.2 million at the end of fiscal 2025.

Financial Summary