Lamb Weston shares tumble 12% despite beating Q2 earnings, revenue estimates

EAGLE, Idaho - Lamb Weston Holdings, Inc. (NYSE:LW) shares fell 12.7% after the frozen potato products supplier reported second-quarter fiscal 2026 results that beat analyst expectations and maintained its full-year guidance.

The company reported adjusted earnings per share of $0.69, exceeding the analyst estimate of $0.64, while revenue reached $1.62 billion, surpassing the consensus estimate of $1.59 billion.

For the quarter ended November 23, Lamb Weston’s revenue increased 1% YoY, driven by an 8% increase in volume that was largely offset by an 8% decline in price/mix. The volume growth came from customer wins and share gains, particularly in North America and Asia, while the price/mix decline reflected ongoing customer pricing support in a competitive global market.

"Our performance this quarter reflects the positive momentum we are building across the business," said Mike Smith, Lamb Weston president and CEO. "We delivered robust volume growth and gained share in priority markets and key categories, demonstrating Lamb Weston’s commitment to deliver quality, innovation, and value."

Adjusted EBITDA declined 3% to $285.7 million compared to the prior year quarter, primarily due to lower adjusted gross profit, partially offset by lower adjusted SG&A expenses.

The company’s North America segment performed well with an 8% volume increase, while the International segment saw higher manufacturing costs that weighed on profitability.

Lamb Weston reaffirmed its fiscal 2026 guidance, projecting revenue between $6.35 billion and $6.55 billion, compared to the analyst consensus of $6.52 billion. The company also maintained its Adjusted EBITDA forecast of $1.00 billion to $1.20 billion.

Additionally, the Board of Directors authorized a 3% increase in the quarterly dividend to $0.38 per share, payable on February 27, 2026.

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