Lamb Weston Holdings Inc. Reports First‑Quarter 2026 Results and Reaffirms FY 2026 Guidance

Lamb Weston Holdings Inc. (NYSE: LW), a leading global supplier of frozen potato products, announced its fiscal first‑quarter results for 2026 on Tuesday, September 30, 2025. The company’s performance, while meeting earnings expectations, revealed a decline in profitability compared to the same period last year. Despite these headwinds, Lamb Weston confirmed its net sales outlook for the full year 2026.

Earnings and Profitability

  • Adjusted earnings per share (EPS): $0.74.
    This figure surpassed the consensus estimate of $0.54, representing a +37 % beat to analysts’ expectations.
  • Net income: $64.3 million, or $0.46 per share.
    The result reflects a 59 % decline in net income compared with the previous year’s $127.4 million ($0.88 per share).
  • Profit margin pressure: The company cited higher commodity costs and lower pricing power in certain markets as key factors behind the narrowed earnings margin.

Revenue and Sales Outlook

  • Revenue growth: Lamb Weston reported a modest gain in sales for the quarter, driven primarily by increased volumes in its core frozen potato product lines (fries, oven‑roasted potatoes, puffs, chips, slices and prepared products).
  • FY 2026 guidance: The company reaffirmed its net sales outlook for the full year, maintaining the target range set in the prior fiscal year. No adjustment to the guidance was made, indicating management’s confidence in the company’s operating strategy and market position.

Market Reaction

  • Pre‑market trading: The stock rose 8.2 % in the pre‑market session, reaching $55.67 at 14:07 UTC.
  • Option activity: On September 28, investors bought 9,276 put options on LW, a 113 % increase over the typical weekly volume, suggesting heightened interest in downside protection ahead of the earnings release.

Contextual Highlights

  • Industry positioning: Lamb Weston operates in the consumer staples sector, specifically the food products sub‑industry. Its product portfolio includes a range of potato‑based items that are distributed to foodservice and retail customers worldwide.
  • Financial standing: With a market capitalization of $7.9 billion and a price‑earnings ratio of 21.9, the company sits within a moderate valuation range for its sector.
  • Recent performance: The 52‑week high for LW reached $83.98 on December 15, 2024, while the 52‑week low was $47.87 on July 20, 2025, illustrating a relatively narrow trading range in the current year.

Outlook

Lamb Weston’s reaffirmation of its FY 2026 sales guidance, coupled with a stronger‑than‑expected first‑quarter EPS, suggests that the company is maintaining its growth trajectory despite the profitability squeeze. Investors will likely monitor subsequent quarters for signs of margin recovery and sustained revenue momentum.