Packaged foods company Conagra Brands (NYSE: CAG) reported Q1 CY2026 results beating Wall Street’s revenue expectations, but sales fell by 1.9% year on year to $2.79 billion. Its non-GAAP profit of $0.39 per share was 2.6% below analysts’ consensus estimates.

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Company Overview

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $11.18 billion in revenue over the past 12 months, Conagra is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when your existing brands have penetrated most of the market. For Conagra to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.

As you can see below, Conagra’s demand was weak over the last three years. Its sales fell by 2.9% annually as consumers bought less of its products.

This quarter, Conagra’s revenue fell by 1.9% year on year to $2.79 billion but beat Wall Street’s estimates by 1.1%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection implies its newer products will catalyze better top-line performance, it is still below average for the sector.

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Volume Growth

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

To analyze whether Conagra generated its growth (or lack thereof) from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.

Over the last two years, Conagra’s average quarterly volumes have shrunk by 1.5%. This isn’t ideal for a consumer staples company, where demand is typically stable. In the context of its 2% average organic sales declines, we can see that most of the company’s losses have come from fewer customers purchasing its products.

In Conagra’s Q1 2026, year on year sales volumes were flat. This result was a well-appreciated turnaround from its historical levels, showing the company is heading in the right direction.

Key Takeaways from Conagra’s Q1 Results

We liked how Conagra's revenue beat. Also, full-year EPS guidance exceeded Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print was mixed. The stock remained flat at $15.74 immediately following the results.

Sure, Conagra had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).