LW NYSE Russell 1000 Earnings call
Lamb Weston (LW) · Q2 2026 results and valuation
Share price: $56.87 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 24 Jul 2026 and 1 Apr 2026
Net income up 103.0% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+103.0%
Net income vs Q1 2026
Outlook given
Net income 109.6M vs 54.0M
Revenue +13.1%
Against the same quarter last year (Q2 2025) it is −8.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
The company reported $1.3 billion available under its revolving credit facility and net debt of $3.8 billion to maintain liquidity.
Valuation
Is Lamb Weston undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-05-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.3% growth a year (3-year revenue growth), the model's fair value is $57.03 a share — the stock trades about at it. Today's price assumes 7.3% growth a year.
Current price
$56.87
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.3% for 10 yrs
Fair value / share
$57.03
Buy below
$42.77
Price vs fair value
Fairly valued
Price vs buy-below price
Overvalued 33%
Read between the lines
-
Guidance
Interest rate expense is expected at $190 million, with an effective tax rate of 25.5% to 27.5%.
Source quote
“We expect interest rate expense of $190 million an effective tax rate in the range of 25.5% to 27.5%.”
-
Key theme
The company stabilized its North America business during fiscal 26, resulting in a 26% segment EBITDA margin for the full year.
Source quote
“Internationally, in the fourth quarter, we faced disruption in shipments and volatile Led by the strength of North America, Throughout fiscal 26, we stabilized our North America business growing volume sales and EBITDA for the full year and ending with a 26% segment EBITDA margin. Jim will speak to our fourth quarter performance shortly.”
-
Guidance
In fiscal 2027, Lamb Weston expects net sales to be flat to up 1% versus a 52-week adjusted net sales base of $6.5 billion for fiscal 26.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I am energized by our momentum and potential, We see significant opportunities to build a high performance culture, sharpen our strategic clarity and growth algorithm, and strengthen our cost discipline,...”
“North America net sales increased 9%, with sales volume up 11% as momentum continued with customer wins share gains, and strong retention as well as the addition of an extra...”
“We kicked off rigorous new strategy work that defines which market clusters or logical groups of countries profitable growth will come from, where to play in this landscape and how...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-05-31)
| Metric | Q2 2026period end 2026-05-31 | Q1 2026period end 2026-02-22 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.77B | 1.56B | +13.1% | 1.68B | +5.6% |
| Gross profit | 361.4M | 331.6M | +9.0% | 342.3M | +5.6% |
| Operating income | 168.8M | 126.6M | +33.3% | 185.8M | −9.1% |
| Net income | 109.6M | 54.0M | +103.0% | 119.7M | −8.4% |
| EPS | 0.79 | 0.39 | +102.6% | 0.84 | −6.0% |
| P/E today 24.4 | 20.8 | 22.7 | −1.9 | 20.2 | +0.6 |
Topics
Most discussed now
- As Lamb Weston thinks about its asset position, it feels really good about where it is at in North America.
- A year ago, Lamb Weston launched a cost savings program to deliver at least $250 million of annualized run rate savings...
- New Lamb Weston is a skilled leader with an advantage plant network in this grid category.
- Lamb Weston has a seasoned board making swift and purposeful decisions to drive incremental value for shareholders.
- With a strong and growing core North American profit pool, significant cash generation potential and a meaningful turnaround opportunity…
Faded since Q1 2026
- Fading This was led by ongoing momentum and a strong sales performance in Lamb Weston's North America business, where customer wins, share...
- Fading In North America, Lamb Weston's focus this year was on strengthening its customer partnerships and consistently executing.
- Fading Investments in Lamb Weston's customers for price and trade support that Mike mentioned earlier; adverse product mix as consumers shift…
- Fading In the U.K., Lamb Weston's largest international market, QSR traffic declined approximately 1%, showing improvement versus recent quarters.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Restructuring costs · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K