Revenue growth has decelerated to a modest 2.9% as of 2026Q3, while gross margins have contracted significantly from a 27.8% peak in 2025Q3 to 21.2%.
| Sales/Revenue | 6.52B | 6.45B | 6.47B | 5.35B | 4.1B | 3.67B | 3.79B | 3.76B | 3.42B | 3.17B | 2.99B | 2.92B | 2.82B |
| Revenue Growth % | 2.04% | -0.25% | 20.88% | 30.54% | 11.66% | -3.2% | 0.96% | 9.72% | 8.07% | 5.82% | 2.35% | 3.9% | - |
| Cost of Goods Sold | 5.18B | 5.05B | 4.7B | 3.92B | 3.27B | 2.84B | 2.9B | 2.75B | 2.54B | 2.39B | 2.33B | 2.34B | 2.23B |
| COGS % of Revenue | - | 78.32% | 72.68% | 73.23% | 79.7% | 77.34% | 76.39% | 73.29% | 74.31% | 75.42% | 77.89% | 79.92% | 79.13% |
| Gross Profit | 1.34B | 1.4B | 1.77B | 1.43B | 832M | 832M | 895.2M | 1B | 879.5M | 778.8M | 661.8M | 587.3M | 587.5M |
| Gross Margin % | 20.57% | 21.68% | 27.32% | 26.77% | 20.3% | 22.66% | 23.61% | 26.71% | 25.69% | 24.58% | 22.11% | 20.08% | 20.87% |
| Gross Profit Growth % | - | -20.84% | 23.36% | 72.13% | 0% | -7.06% | -10.79% | 14.1% | 12.93% | 17.68% | 12.69% | -0.03% | - |
| Operating Expenses | 732.5M | 733.5M | 701.4M | 550M | 387.6M | 357.2M | 338.3M | 335.1M | 299.4M | 260.5M | 288.5M | 205.9M | 220.8M |
| OpEx % of Revenue | - | 11.37% | 10.84% | 10.28% | 9.46% | 9.73% | 8.92% | 8.92% | 8.74% | 8.22% | 9.64% | 7.04% | 7.84% |
| Selling, General & Admin | 653.2M | 633.5M | 701.4M | 550M | 387.6M | 357.2M | 338.3M | 335.1M | 299.4M | 260.5M | 288.5M | 205.9M | 213.2M |
| SG&A % of Revenue | - | 9.82% | 10.84% | 10.28% | 9.46% | 9.73% | 8.92% | 8.92% | 8.74% | 8.22% | 9.64% | 7.04% | 7.57% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 12.9M | 0 | 0 | 0 | 0 | 0 | 0 | 7.6M |
| R&D % of Revenue | - | - | - | - | - | 0.35% | - | - | - | - | - | - | 0.27% |
| Other Operating Expenses | 2M | 100M | 0 | 0 | 0 | -12.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 608.1M | 665.1M | 1.07B | 882.1M | 444.4M | 474.8M | 556.9M | 668.4M | 580.1M | 518.3M | 373.3M | 381.4M | 366.7M |
| Operating Margin % | 9.33% | 10.31% | 16.47% | 16.49% | 10.84% | 12.93% | 14.68% | 17.79% | 16.94% | 16.36% | 12.47% | 13.04% | 13.03% |
| Operating Income Growth % | - | -37.57% | 20.77% | 98.49% | -6.4% | -14.74% | -16.68% | 15.22% | 11.92% | 38.84% | -2.12% | 4.01% | - |
| EBITDA | 994.2M | 1.07B | 1.37B | 1.1B | 636.5M | 656.5M | 739.2M | 830.8M | 723.4M | 627.4M | 469.2M | 477.8M | 445.9M |
| EBITDA Margin % | 15.25% | 16.63% | 21.21% | 20.65% | 15.53% | 17.88% | 19.49% | 22.12% | 21.13% | 19.8% | 15.67% | 16.34% | 15.84% |
| EBITDA Growth % | -8.94% | -21.83% | 24.18% | 73.59% | -3.05% | -11.19% | -11.03% | 14.85% | 15.3% | 33.72% | -1.8% | 7.15% | - |
| D&A (Non-Cash Add-back) | 386.1M | 407.5M | 306.8M | 222.8M | 192.1M | 181.7M | 182.3M | 162.4M | 143.3M | 109.1M | 95.9M | 96.4M | 79.2M |
| EBIT | 610.4M | 680.3M | 1.09B | 1.34B | 433.7M | 473.5M | 556.9M | 668.4M | 580.1M | 518.3M | 373.3M | 381.4M | 364M |
| Net Interest Income | -177.2M | -180M | -135.8M | -109.2M | -161M | -118.3M | -108M | -107.1M | -108.8M | -61.2M | -5.9M | -6.1M | -5.3M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 200K | 300K |
| Interest Expense | 177.2M | 180M | 135.8M | 109.2M | 161M | 118.3M | 108M | 107.1M | 108.8M | 61.2M | 6.1M | 6.3M | 5.6M |
| Other Income/Expense | -174.9M | -164.8M | -109.8M | 351.4M | -171.7M | -66.5M | -78.7M | -47.6M | -25.2M | -7.9M | 65.8M | 36.6M | 21.3M |
| Pretax Income | 433.2M | 500.3M | 955.5M | 1.23B | 272.7M | 408.3M | 478.2M | 620.8M | 554.9M | 510.4M | 439.1M | 418M | 388M |
| Pretax Margin % | 6.65% | 7.75% | 14.77% | 23.05% | 6.65% | 11.12% | 12.61% | 16.53% | 16.21% | 16.11% | 14.67% | 14.29% | 13.78% |
| Income Tax | 135.6M | 143.1M | 230M | 224.6M | 71.8M | 90.5M | 112.3M | 133.6M | 121.2M | 170.2M | 144.5M | 140.4M | 117.7M |
| Effective Tax Rate % | 31.3% | 28.6% | 24.07% | 18.21% | 26.33% | 22.17% | 23.48% | 21.52% | 21.84% | 33.35% | 32.91% | 33.59% | 30.34% |
| Net Income | 300.3M | 357.2M | 725.5M | 1.01B | 200.9M | 317.8M | 365.9M | 478.6M | 416.8M | 326.9M | 285.3M | 268.3M | 260.9M |
| Net Margin % | 4.61% | 5.54% | 11.22% | 18.86% | 4.9% | 8.66% | 9.65% | 12.74% | 12.17% | 10.32% | 9.53% | 9.17% | 9.27% |
| Net Income Growth % | -18.17% | -50.77% | -28.09% | 402.19% | -36.78% | -13.15% | -23.55% | 14.83% | 27.5% | 14.58% | 6.34% | 2.84% | - |
| Net Income (Continuing) | 297.6M | 357.2M | 725.5M | 1.01B | 200.9M | 317.8M | 365.9M | 487.2M | 433.7M | 340.2M | 294.6M | 277.6M | 270.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.16 | 2.50 | 4.98 | 6.95 | 1.38 | 2.16 | 2.49 | 3.18 | 2.82 | 2.22 | 1.92 | 1.82 | 1.78 |
| EPS Growth % | -16.08% | -49.8% | -28.35% | 403.62% | -36.11% | -13.25% | -21.7% | 12.77% | 27.03% | 15.63% | 5.49% | 2.25% | - |
| EPS (Basic) | - | 2.51 | 5.01 | 6.98 | 1.38 | 2.17 | 2.50 | 3.19 | 2.83 | 2.22 | 1.92 | 1.82 | 1.78 |
| Diluted Shares Outstanding | 139.3M | 142.7M | 145.6M | 145.2M | 145.9M | 147.1M | 147.1M | 147.3M | 147M | 146.6M | 146.4M | 146.4M | 146.4M |
| Basic Shares Outstanding | 139M | 142.2M | 144.9M | 144.5M | 145.5M | 146.4M | 146.2M | 146.5M | 146.3M | 146.1M | 146.3M | 146.3M | 146.3M |
| Dividend Payout Ratio | - | 57.92% | 23.98% | 14.48% | 68.89% | 42.57% | 33.15% | 23.67% | 26.44% | 260.29% | - | - | - |
Operational ERP implementation failure
According to recent financial disclosures, Lamb Weston's revenue growth has decelerated significantly, moving from a peak of 35.7% in 2024Q2 to a modest 2.9% in 2026Q3, reflecting a challenging environment for volume expansion within the company's core QSR-focused Global and Foodservice segments.
The sharp deceleration in top-line growth suggests that the company is struggling to maintain its historical momentum as QSR traffic softens. Investors should monitor whether this trend represents a temporary cyclical lull or a more permanent shift in consumer demand for frozen potato products.
As reported in quarterly filings, Lamb Weston's gross margin has contracted from a high of 27.8% in 2025Q3 to 21.2% in 2026Q3, indicating that the company is currently unable to fully offset inflationary pressures on raw materials and energy through pricing actions alone.
This margin compression appears to be exacerbated by the high fixed-cost nature of the company's processing infrastructure, which requires high capacity utilization to remain efficient. The inability to sustain margins above 25% suggests that the company's pricing power may be more limited than previously anticipated.
Based on the provided income statement data, operating margins have compressed from 17.6% in 2024Q2 to 8.1% in 2026Q3, demonstrating a clear lack of operating leverage as the company struggles to manage SG&A expenses amidst a period of stagnant revenue growth.
The decline in operating income suggests that the company's cost structure is not scaling efficiently with current revenue levels. This trend warrants further investigation into whether recent ERP implementation issues are creating persistent, non-recurring overhead costs that continue to weigh on profitability.
Financial statements reveal that Lamb Weston's net income volatility, highlighted by a net loss in 2025Q2, suggests that the company's operational stability is currently compromised by internal execution challenges, specifically regarding the recent ERP system transition and its impact on inventory visibility.
Short-sellers may focus on the disconnect between the company's historical moat and its recent inability to maintain consistent earnings. The reliance on complex, multi-year contracts may provide a false sense of security if the company cannot reliably fulfill orders due to ongoing operational friction.
Quick answers to the most common questions about buying LW stock.
For fiscal year 2025, Lamb Weston Holdings, Inc. (LW) reported total revenue of $6.45B. This represents a 129.2% increase compared to $2.82B in 2014.
Lamb Weston Holdings, Inc. (LW) is profitable, generating $357.2M in net income for the fiscal year ending 2025 with a net profit margin of 5.5%.
Lamb Weston Holdings, Inc. (LW) reported an operating income of $665.1M, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Lamb Weston Holdings, Inc. (LW) generated $1.40B in gross profit for the year, representing a gross profit margin of 21.7%. This demonstrates the company's core pricing power and production efficiency.