Lamb Weston (NYSE: LW) lifts outlook as gross profit slides 22.2%

What happened

Lamb Weston Holdings, Inc. (NYSE: LW) said first-quarter fiscal 2027 net sales rose 1% to $1.67 billion and adjusted EBITDA was $285.6 million.

Net income was $29.1 million, reported diluted EPS was $0.21, and adjusted diluted EPS was $0.75.

North America net sales rose 5% to $1.14 billion and segment adjusted EBITDA rose 11% to $287.3 million. International net sales fell 8% to $528.9 million and segment adjusted EBITDA fell 54% to $26.5 million.

The company raised full-year fiscal 2027 guidance, including adjusted EBITDA to $1.13 billion to $1.22 billion, adjusted diluted EPS to $3.05 to $3.35 and net sales to up low single digits. On October 5, 2026, the board declared a quarterly dividend of $0.38 per share, payable December 4, 2026, to shareholders of record November 6, 2026.

Key numbers

Metric	Latest	Change	Source
Full-year adjusted EBITDA outlook	$1.13 billion to $1.22 billion		SEC 8-K press release
First-quarter net sales	$1.67 billion	from $1.66 billion, +1%	SEC 8-K press release
First-quarter adjusted EBITDA	$285.6 million	from $302.2 million, -5.5%	SEC 8-K press release
First-quarter net income	$29.1 million	from $64.3 million, -55%	SEC 8-K press release
First-quarter adjusted diluted EPS	$0.75	from $0.74, +1%	SEC 8-K press release

Read more: Lamb Weston (LW) stock analysis and investment case

Why it matters

OptimistFi's case is that Lamb Weston works only if stable demand turns into materially better gross profit and operating leverage. This filing is mixed for that thesis because sales rose and the company lifted full-year targets, but margins still came under pressure.

Gross profit fell 22.2% to $266.5 million from $342.4 million, and adjusted EBITDA slipped 5.5% to $285.6 million from $302.2 million.

Management said higher sales volume was more than offset by lower price mix, higher cost of sales and SG&A, and unexpected inflationary pressure across key input costs and freight expense. North America volume grew for the seventh consecutive quarter, and capacity optimization initiatives led to an approximate 10 percentage point increase in utilization.

The counterweight is International, where lower sales volume and higher manufacturing costs per pound drove segment adjusted EBITDA down 54% to $26.5 million. The filing shows the business can still post volume gains while profitability remains uneven across segments.

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What's next

Lamb Weston will host a conference call at 09:00 a.m. ET on October 6, 2026, to review the quarter. The company said it expects to complete Focus to Win work in the coming months and share its roadmap for long-term shareholder value at Investor Day in early calendar 2027.

Meeting the updated full-year ranges would support the case, while missing them would weaken it. The dividend is payable on December 4, 2026.

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