Conagra Reaffirms Fiscal 2026 Targets, Lifts Free Cash Flow Conversion to 100%
Conagra Brands reaffirmed fiscal 2026 guidance, forecasting (1)% to 1% organic sales growth, an 11.0%–11.5% adjusted operating margin, $1.70–$1.85 adjusted EPS, and ~100% free cash flow conversion, up from ~90%. Meanwhile, AlphaQuest LLC cut its stake by 95.8%, selling 56,312 shares and holding 2,442 shares.
1. Guidance Reaffirmation
Conagra reaffirmed fiscal 2026 targets for organic net sales change between (1)% and 1%, adjusted operating margin of roughly 11.0%–11.5%, and adjusted EPS of $1.70–$1.85. The company also increased its free cash flow conversion expectation to approximately 100%, up from a prior projection of 90%.
2. AlphaQuest Stake Reduction
AlphaQuest LLC reduced its holdings in Conagra by 95.8%, selling 56,312 shares during the quarter and retaining just 2,442 shares. This substantial divestment reflects the fund's reallocation strategy and could signal shifting institutional sentiment toward Conagra's shares.