Conagra Stock Tumbles as Tariffs Hit Guidance. Earnings Aren’t Much Better.

Conagra Brands said it expects macroeconomic challenges to impact earnings and sales in fiscal 2026. (Scott Eells/Bloomberg)

Shares of Conagra Brands slumped Thursday after the packaged-food company issued a weak fiscal-year outlook and reported fourth-quarter earnings that fell short of expectations.

Conagra recorded adjusted earnings of 56 cents a share in its fiscal fourth quarter, narrowly missing the 58 cents a share analysts had anticipated, according to FactSet. Sales of $2.78 billion also came in below the $2.83 billion Wall Street had forecast.

The maker of Reddi-wip and Slim Jims attributed weakness in the latest quarter to higher-than-expected inflation, supply constraints, and foreign exchange headwinds. But fiscal-year guidance appeared to be weighing most on shares, which were down 3% at $19.77 after falling sharply in premarket trading.

Conagra said it expects adjusted earnings between $1.70 and $1.85 a share in fiscal 2026, below the $2.18 a share analysts were expecting at the midpoint. Organic sales are anticipated to range down 1% to up 1%.

The company noted that previously announced tariffs are expected to impact fiscal-year results. While negotiations between the U.S. and key trading partners are ongoing, the guidance considers a 50% tax rate on imported tin plate steel and aluminum, a 30% rate on limited imports from China, and a 10% rate on imports from other countries.

“Combined, these tariffs are expected to increase cost of goods sold by approximately 3% annually,” the company said. Management plans to take actions to curb the impact of tariffs, including sourcing alternatives and accelerating cost-savings initiatives.

Conagra shares have lost 28% this year and more than 29% over the past 12 months.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com