Conagra is focused on launching new innovations in calendar year 2026, though the company faces headwinds in a challenging consumer environment. Organic net sales decreased 3.0% in Q2 fiscal 2026, with fiscal 2026 guidance reflecting organic net sales change of -1% to 1%.
Cyborg Score Rationale
The company reported significant goodwill and brand impairment charges in Q2 fiscal 2026, yet maintains a dividend yield of 8.2%. The Altman Z-Score of 1.65 places the company in the distress zone, though management reaffirmed guidance. Mixed fundamental health indicators suggest caution.
Top Insights
Organic net sales declined 3.0% in Q2 fiscal 2026, reflecting challenging consumer demand
The company pays $1.40 annualized dividend with 7.9% yield and 79.55% payout ratio, indicating capital returned to shareholders despite earnings pressure
Fiscal 2026 adjusted operating margin guidance of 11.0-11.5% with free cash flow conversion target raised to approximately 100%
Recent innovations include Banquet MEGA Breakfast Bowls and focus on frozen food category positioning
Named Competitors
General Mills — Diversified packaged food manufacturer
J.M. Smucker — Packaged food and consumer products
Lamb Weston — Frozen potato products
Tyson Foods — Meat and poultry producer
Recent Developments
(February 2026) Conagra presenting at 2026 CAGNY conference with new innovations expected to launch in calendar year 2026
(December 2025) Q2 fiscal 2026 results showed reported loss of $1.39 per share due to goodwill and brand impairment charges, with adjusted EPS of $0.45
(October 2025) Q1 fiscal 2026 reported net sales decreased 5.8%, with organic net sales down 0.6%
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