Conagra Stock Tumbles As Profit Forecast Comes Below Wall Street Expectations On Trump Tariff Impact

Conagra Brands’ (CAG) forecast of fiscal 2026 profit came in below Wall Street expectations on Thursday, as the packaged food maker battles higher costs due to U.S. President Donald Trump’s tariffs and tepid demand for its products.

Conagra’s shares fell 5% in early trading. Retail sentiment around the stock improved to ‘extremely bullish,’ from the ‘neutral’ territory a week ago, according to Stocktwits data.

The Slim Jim meat jerky maker faces tariffs on items such as palm oil, avocados, chipotle, and tinplate steel for canned goods, which are mainly sourced overseas due to limited U.S. supply.

The company is planning to hike prices on its products to combat the higher costs. However, this move could likely impact consumer demand which has already been waning for the company.

Conagra now expects fiscal 2026 adjusted profit between $1.70 and $1.85 per share, compared to estimates of $2.45, according to data compiled by Fiscal AI.

It expects annual organic net sales to be between 1% fall and 1% rise.

The company said it expects Trump’s tariffs to have an impact on its fiscal 2026 performance. It added that the guidance contemplates a 50% tariff rate on imported tin plate steel and aluminum, a 30% rate on limited imports from China, and a 10% reciprocal rate on imports from certain other countries.

Combined, these tariffs are expected to increase the cost of goods sold by approximately 3% annually, Conagra said.

Its fourth-quarter net sales stood at $2.78 billion, missing estimates of $2.88 billion, while adjusted profit of 56 cents per share came in below expectations of 61 cents.

The decline in consumer sentiment during the fourth quarter of fiscal 2025 was driven by the cumulative impact of persistent inflation, rising interest rates, and overall economic uncertainty, CEO Sean Connolly said in prepared remarks.

“This decline in sentiment translated into more cautious spending behaviors. Consumers became increasingly focused on seeking value, prioritizing affordability, and trading down where possible,” he said.

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