Lamb Weston Holdings, Inc. (NYSE:LW) shares fell despite stronger-than-expected earnings and revenue as margin pressures weighed on sentiment.

Pricing headwinds and softer international demand overshadowed operational gains and a raised sales outlook.

• Lamb Weston Hldgs stock is taking a hit today. Why is LW stock dropping?

Quarterly Metrics

The company reported third-quarter adjusted earnings per share of 72 cents, beating the analyst consensus estimate of 61 cents. Quarterly sales of $1.565 billion outpaced the Street view of $1.492 billion.

Net sales at constant currency were essentially flat, as a 7% increase in volume was offset by a 7% decline in price/mix. 

Volume growth was driven by North America customer wins, share gains and strong retention. However, the company experienced softer industry demand in key international markets as well as increased competitive industry dynamics, which most notably affected the Company’s EMEA business.

Adjusted gross profit declined by $92.9 million to $327.5 million, primarily reflecting unfavorable global price/mix,

Adjusted EBITDA declined by $101.3 million from the prior year quarter to $271.7 million.

As of Feb. 22, 2026, the company had $57.5 million of cash and cash equivalents, with $1.26 billion of additional available liquidity under its revolving credit facility.

Dividend

On March 31, the firm declared a quarterly dividend of 38 cents per share of Lamb Weston common stock. The dividend is payable on June 5 to shareholders of record as of the close of business on May 8.

Outlook

Lamb Weston raised its 2026 sales guidance to $6.45 billion to $6.55 billion from $6.35 billion to $6.55 billion.

The company projects adjusted EBITDA of $1.08 billion to $1.14 billion (prior view: $1 billion to $1.20 billion).

“Our focus on operational rigor and cost discipline continues to drive strong productivity, and we now expect to exceed our cost reduction target of at least $250 million by fiscal year-end 2028,” said CEO Mike Smith.

LW Price Action: Lamb Weston shares are trading lower by 6.52% to $39.54 at publication on Wednesday.

Image Courtesy: Lamb Weston