What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Start with three questions: did sales change because of unit volume or price and mix; did margins move in reported results or only after adjustments; and did earnings convert into cash after capital spending? Conagra Brands’ latest report, for the 13 weeks ended August 30, 2026, shows why all three matter: Q1 FY2027 sales declined, adjusted operating margin exceeded reported margin, and free cash flow was negative. The guide below uses that quarter and FY2026 annual results to show how to read the figures without treating any one metric as the whole story.
Conagra’s financial reports page links to company releases and filings. The latest quarterly release was issued September 30, 2026; the FY2026 results were released July 15, 2026.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
How to Report on Books, Grades 3-4 | $15.84 | Buy on Amazon |
| 2 |
|
How to Report on Books, Grades 5-6+ | $15.84 | Buy on Amazon |
As an Amazon Associate I earn from qualifying purchases.
First, check the fiscal period and comparison
Conagra’s Q1 FY2027 covered the 13 weeks ended August 30, 2026, and its release came out September 30, 2026. Read the period and the comparison year before interpreting a percentage: a fiscal quarter is not necessarily the same as a calendar quarter, and the comparison can be affected by calendar or portfolio changes.
The headline figures were $2.6 billion in net sales, down 1.4% year over year, and diluted EPS of $0.36, up 5.9%. Adjusted EPS was $0.41, up 5.1%. EPS can rise even when sales fall because it also reflects margins, expenses, interest, taxes, share count, and unusual items. The quarter’s weighted-average diluted share count was 480 million. The release is available from Conagra’s financial reports page.
#1 Best Overall
What does organic net sales mean for Conagra?
Reported net sales are the company’s sales figure under its financial statements. Organic net sales are a company-defined non-GAAP comparison that excludes the effects of foreign exchange, acquired and divested businesses, and a 53rd fiscal week. Organic sales can make underlying year-over-year trends easier to compare, but they do not replace reported sales; read both and use the release’s reconciliation.
Separate volume from price/mix
Q1 FY2027 organic net sales declined 1.1%. Price/mix contributed a positive 1.0%, while volume declined 2.1%. In other words, the positive price/mix contribution cushioned the effect of fewer units sold. Price/mix is not pure pricing: the combined measure can reflect changes in both prices and the mix of products or customers.
Compare the segments, not just the company total
| Q1 FY2027 segment | Organic net sales | Price/mix | Volume | What to notice |
|---|---|---|---|---|
| Grocery & Snacks | Down 2.0% | Up 3.4% | Down 5.4% | Positive price/mix was more than offset by lower volume. |
| Refrigerated & Frozen | Down 1.6% | Down 1.5% | Down 0.1% | Price/mix accounted for most of the decline. |
| International | Up 0.9% | Up 1.6% | Down 0.7% | Positive price/mix exceeded the volume decline. |
| Foodservice | Up 3.3% | Up 0.8% | Up 2.5% | Volume growth benefited by approximately 150 basis points from customer orders timed in Q1 that occurred in Q3 of the prior year. |
The Foodservice timing effect matters when judging whether the quarter’s volume growth is likely to recur. Conagra’s Q1 FY2027 release provides these segment figures and explanations; consult it through the financial reports page.
Keep the 53-week year visible in annual comparisons
FY2026 contained 53 weeks, compared with 52 weeks in FY2025. Conagra excludes the extra week, along with currency and acquired or divested businesses, from organic-sales comparisons. For FY2026, reported sales fell 2.9%, while organic sales fell 0.4%. The different rates answer different questions: reported sales describe the period as recorded, while organic sales adjust for the stated comparison factors. See the FY2026 release and Form 10-K via Conagra’s financial reports page.
Why is Conagra’s adjusted margin different from reported margin?
Read profitability in layers: gross margin shows profit after cost of goods sold; operating margin also reflects operating expenses. Then compare reported figures with adjusted ones. For Q1 FY2027, gross margin was 23.8%, down 50 basis points year over year; adjusted gross margin was also 23.8%, down 62 basis points. Reported operating margin was 10.3%, compared with adjusted operating margin of 11.5%.
Look for the drivers behind the margin change
Conagra said lower organic sales, cost-of-goods-sold inflation, and unfavorable operating leverage pressured gross profit. Productivity and about $4 million in tariff refunds helped offset that pressure. Operating leverage describes how changes in sales affect costs and profit; when sales are weaker, fixed or less-flexible costs can weigh more heavily on margins.
Treat adjustments as a companion view, not a substitute
Conagra describes adjusted measures as excluding items it considers significant and not indicative of core results. That is the company’s framework, not proof that excluded items do not matter. Check the release’s reconciliation to see what was removed, whether similar charges or gains recur, and how large the difference is. The measures are non-GAAP, so retain the reported results as well.
Free tools Windows power users keep installed
One-click scans. No signup required.
Rank #2
- Used Book in Good Condition
FY2026 demonstrates the scale of the distinction: reported operating margin was negative 14.4%, while adjusted operating margin was 11.3%. Reported diluted loss per share was $4.00, while adjusted EPS was $1.72. Conagra attributed the reported annual loss primarily to non-cash goodwill and brand impairment charges. Non-cash does not mean irrelevant: impairment charges affect reported earnings and may signal a change in expectations for the value of assets or brands. The annual release and filing are linked from Conagra’s financial reports page.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How does Conagra’s earnings compare with its cash flow?
Net income and EPS are accounting measures; cash flow shows cash generated or used during the period. Net cash from operating activities starts with net income and adjusts for non-cash items and changes in operating assets and liabilities. To judge cash available after investment in facilities and equipment, also examine capital expenditures (capex) and the company’s free-cash-flow calculation.
Q1 FY2027: a sharp operating-cash-flow decline and negative free cash flow
Conagra used $4.2 million of cash in operating activities in Q1 FY2027, compared with $120.6 million generated in Q1 FY2026. The company cited lower operating profit and higher litigation payments, net of recoveries, as principal drivers of the decline. The cash-flow statement also shows sizeable movements in inventories, accrued payroll, and litigation accruals; those working-capital and payment movements help explain why cash does not track EPS one-for-one.
Q1 FY2027 capital expenditures were $123.7 million, so free cash flow was negative $127.9 million: negative $4.2 million of operating cash flow minus $123.7 million of capex. In Q1 FY2026, capex was $146.8 million and free cash flow was negative $26.2 million. Conagra defines free cash flow as operating cash flow less additions to property, plant, and equipment. Because it is a company-defined non-GAAP measure, use the stated definition and arithmetic rather than treating it as a standardized replacement for operating cash flow.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallAnnual cash flow gives a less volatile view
| Fiscal year | Operating cash flow | Capital expenditures | Free cash flow |
|---|---|---|---|
| FY2026 (53 weeks) | $1,402.1 million | $423.4 million | $978.7 million |
| FY2025 (52 weeks) | $1,691.9 million | $389.3 million | $1,302.6 million |
Conagra attributed the lower FY2026 operating cash flow principally to lower operating profit and the prior-year accelerated receipt of some outstanding receivables, partly offset by favorable inventory management. A single quarter can be affected by payment and collection timing, so annual cash flow is useful context; it does not erase the quarter’s cash use. FY2026 and FY2025 figures are from Conagra’s annual results, accessible through its financial reports page.
How to read Conagra’s FY2027 outlook and debt figures
Conagra reaffirmed its FY2027 guidance in the September 30, 2026 release. These are management’s forward-looking estimates, not reported results or guaranteed outcomes.
| FY2027 guidance measure | Management estimate |
|---|---|
| Organic net sales change | Down 3% to down 1% |
| Adjusted operating margin | 10.0%–10.5% |
| Adjusted EPS | $1.40–$1.50 |
| Capital expenditures | Approximately $550 million |
| Free-cash-flow conversion | Above 90% |
| Year-end net leverage | Around 4.0x |
At the end of Q1 FY2027, net debt was $7.4 billion and net leverage was 3.99x. Those are quarter-end figures, not the year-end estimate in the guidance. Comparing them can help readers track progress, but the outcome depends on future earnings, cash flow, debt, and the company’s calculation of leverage. The outlook and quarter-end figures are in the Q1 FY2027 release, linked from Conagra’s financial reports page.
Quick Recap
A practical checklist for the next report
- Confirm the fiscal period end date and the comparison period before interpreting growth.
- Read reported sales alongside organic sales; note the adjustments used for the latter.
- Break organic growth into volume and price/mix, and check whether management identifies timing effects.
- Compare gross margin and operating margin, then compare reported results with adjusted results and inspect the reconciliation.
- Follow net income into operating cash flow, working-capital movements, capex, and the company-defined free-cash-flow figure.
- Keep quarterly performance separate from full-year guidance, and distinguish quarter-end debt measures from year-end targets.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
