Conagra Brands Inc (NYSE:CAG) stock fell 0.29% (As on April 2, 11:36:28 AM UTC-4, Source: Google Finance) after the company reported its third-quarter results before the open, missing the consensus earnings estimate but topping revenue expectations. The Refrigerated & Frozen segment posted the strongest performance with organic net sales up 3.6%, driven by a 3.9% volume increase reflecting market share recovery following last year’s supply constraints. The Grocery & Snacks segment saw organic net sales rise 1.8%, while the Foodservice segment increased 3.6%. Adjusted gross margin declined 112 basis points to 23.7% as higher organic net sales and productivity were offset by cost of goods sold inflation, which the company expects to reach approximately 7% for the full fiscal year, including tariff expenses. Adjusted net income decreased 22.3% to $188 million. Adjusted EBITDA, which includes adjusted equity method investment earnings and pension and postretirement non-service income, decreased 14.9% to $437 million in the quarter. For the first three quarters of fiscal 2026, the company generated $896 million in net cash flows from operating activities compared to $1.35 billion in the prior year period.

CAG in the third quarter of FY 26 has reported the adjusted earnings per share of $0.39, missing the analysts’ estimates for the adjusted earnings per share of $0.40. The company had reported the adjusted revenue decline of 1.9 percent to $2.79 billion in the third quarter of FY 26, beating the analysts’ estimates for revenue of $2.76 billion. However, organic net sales rose 2.4%, driven by a 1.9% price/mix increase and a 0.5% volume gain. The company cited continued momentum in its Frozen and Snacks businesses, with volume share gains in categories including frozen single serve meals, frozen vegetables, meat snacks, and hot cocoa. Adjusted operating margin reached 10.6% in the quarter. Gross profit decreased 7.4% to $658 million in the quarter and adjusted gross profit decreased 6.3% to $660 million as higher organic net sales and productivity were more than offset by the negative impact of cost of goods sold inflation, unfavorable operating leverage, and lost profit from divested businesses. Gross margin decreased 141 basis points to 23.6% in the quarter, and adjusted gross margin decreased 112 basis points to 23.7%.

The company narrowed its full-year adjusted EPS guidance to approximately $1.70, at the low end of its previous $1.70 to $1.85 range. The company expects full-year adjusted operating margin to be near the high end of its 11.0% to 11.5% range.