CAG · 10-K · 2026A · Full report

Income Tax Rate Changes

CONAGRA BRANDS INC. · 2026-07-15 · Importance 59 · Surprise 82 · From source text

Income tax expense was $91.8 million in fiscal 2026 compared to $3.7 million in fiscal 2025, driving an effective tax rate (inclusive of equity method earnings) of approximately (5.0)% in 2026 versus 0.3% in 2025. Items impacting comparability include a $35.2 million income tax benefit and related $0.3 million equity method investment benefit associated with elections made on an income tax return of a joint venture in fiscal 2026. The Company recognized income tax expense of $11.1 million related to a former divestiture and expects an effective tax rate of approximately 24% in fiscal 2027, exclusive of unusual transactions or tax events.

Key facts

• Income tax expense was $91.8 million in fiscal 2026 and $3.7 million in fiscal 2025; effective tax rate was approximately (5.0)% in fiscal 2026 and 0.3% in fiscal 2025. source
• We expect our effective tax rate in fiscal 2027, exclusive of any unusual transactions or tax events, to be approximately 24%. source
• Income tax benefits of $253.5 million associated with the release of valuation allowances on certain deferred tax assets in fiscal 2025. source
• Liability for gross unrecognized tax benefits related to uncertain tax positions was $20.3 million as of May 31, 2026. source

Impact estimates