A maker of pantry and freezer staples, Conagra Brands sells beloved American food brands like Slim Jim, Duncan Hines, Birds Eye, Marie Callender's, and Reddi-wip to shoppers and restaurants. It began in 1919 as Nebraska Consolidated Mills, a merger of four grain mills, taking its name in 1971 from Latin words for "consolidated" and "agriculture." Fun fact: Duncan Hines was a real traveling salesman who reviewed restaurants before his name became cake mix.
10-K · Fiscal year ended May 31, 2026 · SEC filing ↗
Conagra took $2.93B in impairment charges, driving a $1.92B FY2026 net loss as input cost inflation and divestiture impacts compressed margins across all segments.
Conagra wrote down $2.93 billion in and brand intangibles, turning the year to a loss. fell 2.9% to $11.28 billion and contracted 1.4 points to 23.6% as input cost inflation and the loss of profit from divested businesses outpaced productivity savings. The balance sheet reset leaves the company facing another year of elevated costs and consumer sensitivity with $7.27 billion in debt.
Key takeaways
A $2.93 billion non-cash charge—$2.38 billion in and $547.2 million in brand intangibles, primarily in the Refrigerated & Frozen —drove a net loss of $1.92 billion and a diluted loss per share of $4.00.
fell 1.4 points to 23.6%, the fifth consecutive quarter of contraction, as input cost inflation, unfavorable , and reduced profit from divested businesses including Chef Boyardee and frozen fish more than offset productivity gains.
Section summaries
Business
Conagra Brands is a leading North American branded food company operating through four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
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The Grocery & Snacks sells branded, shelf-stable food products in U.S. retail channels, while Refrigerated & Frozen handles temperature-controlled branded products in U.S. retail.
The International sells branded food products across various temperature states in retail and foodservice channels outside the U.S., and the Foodservice segment provides branded and customized products to U.S. restaurants and foodservice establishments.
declined 2.9% to $11.28 billion, with organic volume declines in Grocery & Snacks, International, and Foodservice only partially offset by pricing actions and a 53rd week.
fell in all four segments: Refrigerated & Frozen down 25.5%, Grocery & Snacks down 13.0%, Foodservice down 10.2%, and International down 4.7%, with input cost inflation and divestiture impacts cited as the primary drivers.
The company sold its Chef Boyardee business for net proceeds of $607.0 million, recognizing a $42.7 million gain, and used the proceeds along with $1.0 billion in new senior notes to repay $1.0 billion of maturing debt.
fell to $1.40 billion from $1.69 billion, pressured by lower operating profits and $141.1 million in litigation payments related to cooking spray product claims.
What changed
The recovery flagged in FY2024 and FY2025 did not materialize; instead, margin contracted 1.4 points to 23.6%, ending a two-year expansion streak as input cost inflation and divestiture impacts overwhelmed productivity savings.
The Refrigerated & Frozen , which took $879.1 million in charges in FY2024, absorbed an additional $2.93 billion in and brand intangible impairments in FY2026, signaling that the volume and profit stabilization anticipated after the prior reset did not occur.
The risk of further intangible asset impairments, repeatedly flagged since FY2022, materialized at a scale that reduced total by 28.8% to $6.36 billion.
The $1.0 billion debt refinancing flagged in Q1 FY2026 was completed, with the company issuing new senior notes to repay maturing obligations, maintaining investment-grade ratings but leaving $7.27 billion in total debt with $762.5 million maturing in October 2026.
The tax benefit that inflated in FY2025 and Q1 FY2026 reversed; the turned negative 5.0% for FY2026 as non-deductible impairments generated tax expense despite a pre-tax loss.
What to watch
Whether can stabilize or begin to recover from 23.6% as the company laps the input cost inflation and divestiture impacts that drove five consecutive quarters of contraction.
The trajectory of Refrigerated & Frozen profit after the $2.93 billion reset—whether the segment can return to growth or whether the volume declines that triggered the persist.
The company's ability to refinance or repay the $762.5 million in debt maturing in October 2026 without materially increasing , given the $7.27 billion total debt load.
Whether further intangible asset impairments materialize, given the $8.12 billion in remaining and $1.83 billion in other intangibles and the ongoing profit pressure across all four segments.
Walmart, Inc. and its affiliates are the largest customer, accounting for approximately 29% of consolidated in fiscal 2026.
The company faces intense competition from larger, well-known branded food companies and private label products, competing primarily on quality, product innovation, value, and brand loyalty.
Conagra manages raw material cost volatility through productivity and pricing initiatives and uses to economically hedge a portion of forecasted future consumption.
As of May 31, 2026, the company had approximately 17,400 employees, with about 48% covered by , and reported an of 1.24 per 100 full-time workers.
Conagra faces material risks from input cost inflation, tariff-driven cost increases, and customer concentration, with Walmart representing 29% of fiscal 2026 net sales.
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Rapidly imposed U.S. tariffs and reciprocal tariffs are increasing costs for ingredients, packaging, and commodities, with no guarantee mitigation strategies will succeed.
Input cost inflation is expected to remain elevated in fiscal 2027, and the company may not fully offset rising raw material, labor, and logistics costs through pricing or hedging.
Walmart and its affiliates accounted for approximately 29% of consolidated in fiscal 2026, and the loss or material reduction of this or other key customers could significantly harm results.
The company has $7.27 billion in total debt, including $762.5 million maturing in October 2026, which may limit financial flexibility and increase vulnerability to rising interest rates.
of $8.12 billion and other intangibles of $1.83 billion are subject to annual testing, and a material charge could negatively impact net worth and earnings.
New and changing regulations, including extended producer responsibility laws and FDA scrutiny of food ingredients, may increase compliance costs and require product reformulation.
Our headquarters are located in Chicago, Illinois. Other general offices, shared service centers, and product development facilities are located in Nebraska and the District of Columbia. We also lease a limited number of domestic sales offices. International general offices are…
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Our headquarters are located in Chicago, Illinois. Other general offices, shared service centers, and product development facilities are located in Nebraska and the District of Columbia. We also lease a limited number of domestic sales offices. International general offices are located in Canada, Mexico, Panama, and the Philippines.
We maintain a number of stand-alone distribution facilities. In addition, there are warehouses at most of our manufacturing facilities.
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Table of Contents
Utilization of manufacturing capacity varies by manufacturing plant based upon the type of products assigned and the level of demand for those products. Management believes that our manufacturing and processing plants are well maintained and are generally adequate to support the current operations of the business.
As of July 15, 2026, we had 37 domestic manufacturing facilities located in Arkansas, California, Colorado, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, Ohio, Tennessee, Washington, and Wisconsin. We also have international manufacturing facilities in Canada and Mexico, and an ownership interest in an additional international manufacturing facility in Mexico.
We own most of our manufacturing facilities. However, a limited number of plants and parcels of land, along with the related manufacturing equipment are leased. Substantially all of our transportation equipment and forward-positioned distribution centers containing finished goods are leased or operated by third parties.
The majority of our manufacturing assets are shared across multiple reporting segments. Output from these facilities used by each reporting segment can change over time. Therefore, it is impracticable to disclose them by segment.
Fiscal 2026 net sales fell 2.9% to $11.28B, with segment operating profit down across all segments due to input cost inflation and lower volumes.
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Total decreased 2.9% to $11.28B, with organic volume declines in Grocery & Snacks, International, and Foodservice only partially offset by pricing actions and a 53rd week.
decreased primarily due to lower , input cost inflation, and unfavorable , partially offset by productivity initiatives and the 53rd week.
fell in all four segments, with Refrigerated & Frozen down 25.5% and Grocery & Snacks down 13.0%, driven by inflation and lower volumes.
SG&A expenses decreased $97.9M to $1.44B, reflecting lower restructuring and legal charges, partially offset by higher incentive compensation and advertising costs.
Fiscal 2026 diluted loss per share was $4.00, compared to of $2.40 in fiscal 2025, largely due to $2.93B in and brand intangible asset charges.
The company expects continued input cost inflation and consumer sensitivity in fiscal 2027, and may implement additional price increases, while focusing on innovation for wellness-oriented products.
Quantitative and Qualitative Disclosures About Market Risk
Principal market risks are commodity/energy inputs, interest rates, and foreign currencies, managed via hedging policies.
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Commodity price risk arises from inputs like wheat, corn, oils, pork, dairy, and energy, hedged with physical forwards or derivatives under dollar-risk limits.
Interest rate risk is managed with swaps; a 1% rate increase would lower fixed-rate debt by ~$315M, while a 1% decrease would raise it by ~$352M as of May 31, 2026.
Foreign currency exposure from purchasing, sales, and asset/liability settlement is hedged with forward exchange or option contracts.
A hypothetical 10% adverse move in commodity and FX rates would impact fair values by $3.8M (energy), $5.1M (agriculture), and $9.5M (foreign exchange) on average in fiscal 2026.
changes on derivatives are expected to be substantially offset by inverse changes in the underlying hedged items.
Conagra Brands reported a $1.92 billion net loss for FY2026, driven by $2.93 billion in goodwill and intangible asset impairment charges.
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declined 2.9% to $11.28 billion, while fell 10.2% to $2.70 billion due to higher cost of goods sold as a percentage of sales.
The company recorded $2.38 billion in charges and $547.2 million in other charges, primarily in the Refrigerated & Frozen .
was $1.40 billion, down from $1.69 billion in FY2025, impacted by litigation payments of $141.1 million related to cooking spray product claims.
The company completed the sale of its Chef Boyardee business for net proceeds of $607.0 million, recognizing a $42.7 million gain.
Total decreased by 28.8% to $6.36 billion, largely due to the net loss and $670.0 million in payments.
The was negative 5.0% for FY2026, as the tax expense of $91.8 million was incurred despite a pre-tax loss of $1.82 billion, mainly due to non-deductible impairments.