Potato products company Lamb Weston (NYSE: LW) announced better-than-expected revenue in Q2 CY2026, with sales up 5.6% year on year to $1.77 billion. Its GAAP profit of $0.79 per share was 48.4% above analysts’ consensus estimates.
Is now the time to buy Lamb Weston? Find out by accessing our full research report, it’s free.
Lamb Weston (LW) Q2 CY2026 Highlights:
- Revenue: $1.77 billion vs analyst estimates of $1.69 billion (5.6% year-on-year growth, 4.8% beat)
- EPS (GAAP): $0.79 vs analyst estimates of $0.53 (48.4% beat)
- Adjusted EBITDA: $287.6 million vs analyst estimates of $252.5 million (16.2% margin, 13.9% beat)
- EPS (GAAP) guidance for the full year is $3.10 at the midpoint, beating analyst estimates by 6%
- EBITDA guidance for the full year is $1.15 billion at the midpoint, above analyst estimates of $1.13 billion
- Operating Margin: 9.5%, down from 11.1% in the same quarter last year
- Organic Revenue rose 6% year on year (beat)
- Sales Volumes rose 7% year on year (6% in the same quarter last year)
- Market Capitalization: $6.79 billion
“This past year marked an important inflection point for our Company,” said Mike Smith, Lamb Weston president and CEO.
Company Overview
Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $6.61 billion in revenue over the past 12 months, Lamb Weston is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Lamb Weston’s sales grew at a decent 7.3% compounded annual growth rate over the last three years as consumers bought more of its products.
This quarter, Lamb Weston reported year-on-year revenue growth of 5.6%, and its $1.77 billion of revenue exceeded Wall Street’s estimates by 4.8%.
Looking ahead, sell-side analysts expect revenue to decline by 3.6% over the next 12 months, a deceleration versus the last three years. This projection doesn’t excite us and implies its products will face some demand challenges.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Lamb Weston’s average quarterly volume growth was a robust 5.6% over the last two years. This is good because meaningful volume growth is hard to come by in the stable consumer staples sector. 
In Lamb Weston’s Q2 2027, sales volumes jumped 7% year on year. This result was an acceleration from its historical levels, certainly a positive signal.
Key Takeaways from Lamb Weston’s Q2 Results
It was good to see Lamb Weston beat analysts’ EPS expectations this quarter. We were also excited its gross margin outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock remained flat at $49.52 immediately following the results.
Indeed, Lamb Weston had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
