Lamb Weston Holdings Inc. (NYSE:LW) reported fourth-quarter fiscal 2026 results that topped Wall Street estimates and issued fiscal 2027 guidance above analyst expectations.

The frozen potato products maker reported adjusted earnings of 92 cents per share, beating the consensus estimate of 63 cents. Revenue rose to $1.77 billion, above the $1.69 billion analyst estimate.

Lamb Weston is a U.S.-based food processing company that produces frozen potato products, including french fries, for restaurant chains, retailers and food-service customers. The company is headquartered in Eagle, Idaho, and operates manufacturing and distribution facilities in multiple countries.

North America Drives Growth

Net sales increased 6% year over year, supported by a 7% increase in sales volume, a 2% favorable currency impact and an additional week in the quarter.

North America sales climbed 9% as volume increased 11%, marking the sixth straight quarter of volume growth. The company attributed the gain to new customer wins, market share gains, strong customer retention and the extra week in the quarter. Price and mix declined 2% because of customer pricing support and a shift toward faster-growing chain and private-label products.

International sales fell 2%. Volume declined 2%, while price and mix dropped 4%. Growth in Asia Pacific and Latin America was more than offset by weaker performance in Europe, the Middle East and Africa, where challenging market conditions and disruptions related to the Middle East weighed on results.

For fiscal 2026, Lamb Weston generated $942.9 million in operating cash flow and spent $410.1 million on capital expenditures. The company ended the year with $68.2 million in cash and $1.28 billion of available credit capacity.

Cost Savings, Capital Returns And Outlook

Lamb Weston said it exceeded its fiscal 2026 cost savings target of $100 million under its Focus to Win strategy. The company remains on track to deliver at least $250 million in annualized savings by fiscal 2028 through supply chain improvements and lower selling, general and administrative expenses.

The company returned $320.7 million to shareholders during fiscal 2026 through dividends and share repurchases, including $113.2 million of buybacks. About $245 million remains under its current share repurchase authorization.

Lamb Weston also declared a quarterly dividend of 38 cents per share, payable Sept. 4, 2026, to shareholders of record on Aug. 7, 2026.

For fiscal 2027, the company expects adjusted earnings of $2.95 to $3.25 per share, compared with the analyst consensus estimate of $3.01. It projects revenue of $6.61 billion to $6.68 billion, above the consensus estimate of $6.39 billion.

CEO Mike Smith said the company exceeded its financial outlook, driven by strong sales and profitability, particularly from higher North America volumes.

He added that disruptions in the Middle East and inflation weighed on the EMEA business, while supply chain and manufacturing improvements helped offset inflationary and operating cost pressures.

LW Price Action: Lamb Weston shares were up 0.75% at $49.55 at the time of publication on Friday, according to Benzinga Pro data.

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