Lamb Weston Holdings, Inc. (NYSE: LW) saw its shares plummet 16.57% during Friday's trading session, marking one of the steepest declines in recent months. The drop followed the company's pre-market earnings release, which triggered a wave of investor sell-offs.

The frozen potato supplier reported Q2 adjusted earnings of $0.69 per share, down from $0.73 a year earlier, despite net sales rising to $1.62 billion (above estimates). While the company beat sales expectations, its reaffirmed fiscal 2026 sales outlook of $6.35-$6.55 billion failed to impress investors, signaling no upward revision amid rising economic uncertainty. Additionally, a sequential decline in adjusted gross profit due to higher raw material and manufacturing costs weighed on sentiment.

The stock had already fallen nearly 13% in pre-market trading, with the downward momentum accelerating into the regular session as the market digested the mixed results and unchanged guidance.