Conagra Brands reported QQ1 2026 revenue of $2.6326 billion, down 5.81% year-over-year and 5.36% quarter-over-quarter, with a gross margin of 24.33% and an operating margin of 13.20%. Despite a meaningful top-line decline, operating income rose 8.22% sequentially, reflecting ongoing cost-control actions and favorable operating leverage within a challenging macro environment. Net income declined sharply year-over-year to $164.5 million, equating to $0.34 per share, as higher other expenses and a higher tax rate weighed on profitability. The balance sheet remains liquid with a cash balance of $698.1 million and net debt of $359.1 million, supported by a solid operating cash flow profile and disciplined capital expenditure. While the quarter demonstrates resilience in operating earnings amid revenue pressure, cash flow generation was modest and free cash flow was negative due to capex and working capital dynamics.