Lamb Weston (NYSE:LW) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Lamb Weston (NYSE:LW) issued its quarterly earnings results on Wednesday. The specialty retailer reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.09, FiscalAI reports. Lamb Weston had a net margin of 6.06% and a return on equity of 27.71%. The firm had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.49 billion. During the same quarter in the prior year, the business earned $1.10 EPS. Lamb Weston’s quarterly revenue was up 2.9% compared to the same quarter last year.

Here are the key takeaways from Lamb Weston’s conference call:

• North America outperformed with 12% volume growth and 5% net sales growth driven by customer wins, improved plant run rates and higher retention, which supported a tighter FY26 guidance and stronger operating execution.
• International markets remain stressed—Europe faces surplus potato supply and weak restaurant traffic, prompting a $33 million pre-tax write-off, the Munro plant closure in Argentina and production curtailments that materially pressured international EBITDA.
• Cost and cash strength: the company has already hit its $100 million FY26 savings goal and is tracking ahead of the $250 million FY28 target, while generating $596 million of cash from operations YTD, $339 million of free cash flow and maintaining ~$1.3 billion of liquidity.
• Price/mix and margin headwinds persist as price mix declined ~7% (partly from customer price/trade support and mix shifts), adjusted EBITDA fell $101 million YoY, and management expects Q4 gross margin to decline another 250–300 bps with ongoing mix pressure into FY27.

Lamb Weston Stock Performance

NYSE LW traded down $1.79 during trading hours on Wednesday, hitting $40.47. 2,033,801 shares of the stock were exchanged, compared to its average volume of 3,195,352. The company has a quick ratio of 0.64, a current ratio of 1.43 and a debt-to-equity ratio of 2.08. The company has a market cap of $5.62 billion, a price-to-earnings ratio of 14.61, a price-to-earnings-growth ratio of 5.96 and a beta of 0.43. Lamb Weston has a 12-month low of $38.95 and a 12-month high of $67.07. The stock has a 50-day moving average of $45.33 and a 200 day moving average of $52.06.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on LW shares. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Lamb Weston from $46.00 to $40.00 and set a “hold” rating for the company in a report on Monday. JPMorgan Chase & Co. dropped their price target on Lamb Weston from $50.00 to $44.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 24th. Stifel Nicolaus decreased their price objective on Lamb Weston from $63.00 to $50.00 and set a “hold” rating for the company in a research report on Monday, December 22nd. Barclays lowered their target price on Lamb Weston from $68.00 to $55.00 and set an “overweight” rating on the stock in a research note on Tuesday, December 23rd. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $46.00 price target on shares of Lamb Weston in a research note on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $51.50.

Insider Transactions at Lamb Weston

In other Lamb Weston news, insider Jan Eli B. Craps bought 50,000 shares of the company’s stock in a transaction on Friday, February 6th. The shares were bought at an average price of $48.65 per share, for a total transaction of $2,432,500.00. Following the transaction, the insider owned 300,000 shares of the company’s stock, valued at approximately $14,595,000. This trade represents a 20.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.29% of the company’s stock.

Institutional Trading of Lamb Weston

A number of institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD raised its position in Lamb Weston by 27.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,824,690 shares of the specialty retailer’s stock worth $411,558,000 after acquiring an additional 2,111,874 shares in the last quarter. Ion Asset Management Ltd. purchased a new stake in shares of Lamb Weston during the 2nd quarter worth $84,379,000. Marshall Wace LLP grew its stake in shares of Lamb Weston by 170.5% during the 4th quarter. Marshall Wace LLP now owns 1,022,143 shares of the specialty retailer’s stock worth $42,818,000 after purchasing an additional 644,334 shares during the period. Bank of America Corp DE lifted its stake in shares of Lamb Weston by 129.2% in the third quarter. Bank of America Corp DE now owns 1,089,110 shares of the specialty retailer’s stock valued at $63,256,000 after purchasing an additional 613,829 shares during the period. Finally, ION Fund Management Ltd purchased a new stake in Lamb Weston during the fourth quarter worth about $23,555,000. 89.56% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Lamb Weston

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Lamb Weston raised the midpoint of its fiscal‑2026 net sales and EBITDA outlook and lowered expected 2026 capital expenditures — a signal of stronger near‑term cash flow versus prior guidance. Business Wire: Q3 Results & Guidance
• Positive Sentiment: Quarterly EPS ($0.72) and revenue ($1.56B) topped consensus estimates, providing a near‑term fundamental beat that supports valuation. Zacks: Q3 Earnings and Revenues Top Estimates
• Neutral Sentiment: Several analysts revised forecasts and positioned estimates ahead of the call; that trimmed uncertainty but didn’t deliver uniform upgrades. Watch analyst notes for follow‑through. Benzinga: Analysts Revise Forecasts
• Negative Sentiment: Profitability fell sharply year‑over‑year (net income and operating income down materially) and margins compressed due to higher costs and pricing pressure — the core reason investors are wary despite the beat. Blockonomi: Shrinking Margins
• Negative Sentiment: Deutsche Bank cut its price target to $40 and moved to a Hold; fresh downside to Street targets and mentions of international weakness/activist pressure add selling catalysts. AmericanBankingNews: DB Lowers Price Target

About Lamb Weston

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.