Lamb Weston Holdings (LW) has released its FY 2026 numbers with Q4 revenue of US$1,770.1 million and basic EPS of US$0.80, alongside trailing 12 month revenue of US$6.6 billion and basic EPS of US$2.09. This provides a clear snapshot of current scale and earnings power. The company has seen revenue move from US$6.4 billion in the trailing period to Q4 2026’s quarterly run rate, with EPS ranging between US$0.39 and US$0.85 a quarter over the last six reported quarters. This gives investors a detailed view of how earnings have tracked through the year. With a net profit margin of 4.6% over the last 12 months and a one off loss affecting reported earnings, this set of results puts profitability and margins firmly in focus.

See our full analysis for Lamb Weston Holdings.

With the headline numbers on the table, the next step is to see how these results line up with the most common narratives around Lamb Weston Holdings, and where the story investors tell might need updating.

Margins Under Pressure at 4.6%

• Net profit margin over the last 12 months was 4.6%, compared with 5.7% a year earlier, while trailing net income (excluding extra items) was US$290 million on US$6.6b of revenue.
• Bears argue that cost pressures and changing consumer habits could keep margins under strain, and the recent data gives them some support:
  • Net margin at 4.6% sits below the prior 5.7%, and the last 12 months include a one off loss of US$130.5 million that weighed on reported profitability.
  • Forecast revenue growth of about 3.2% a year, which is below the US market forecast of 12.7% a year, limits how quickly fixed costs can be spread over a larger sales base.

For readers worried about whether these margin pressures fit the more cautious view on Lamb Weston Holdings, skeptics set out their full case in the 🐻 Lamb Weston Holdings Bear Case.

Quarterly Earnings Swing but TTM at US$2.09 EPS

• Across the last six reported quarters, Lamb Weston Holdings has posted basic EPS between US$0.39 and US$1.03 a quarter, with trailing 12 month basic EPS at US$2.09 on US$6.6b of revenue.
• Supporters of the bullish narrative point to cost savings and efficiency plans as a way to smooth out these earnings swings over time, and the current figures give them some reference points:
  • In FY 2026, quarterly EPS ranged from US$0.39 in Q3 to US$0.80 in Q4, while net income excluding extra items for the year’s quarters ranged from US$54 million to US$109.6 million, which is the base that margin expansion ambitions build on.
  • The bullish view expects profit margins to rise from 4.6% today to 8.7% in a few years, so today’s US$290 million of trailing net income is treated as a starting level rather than an end point.

If you want to see how bullish investors connect these EPS swings with their longer term story for Lamb Weston Holdings, check out the 🐂 Lamb Weston Holdings Bull Case.

High P/E vs Peers and DCF Fair Value Gap

• The shares trade on a P/E of 22.8x, above both the US Food industry average of 17.9x and a peer average of 10.2x, while a DCF fair value of US$156.75 contrasts with the current share price of US$49.58.
• Consensus narrative highlights this mix of rich multiples and a large DCF gap, and the numbers pull in different directions:
  • On one side, the price of US$49.58 is far below the stated DCF fair value of US$156.75, which is a very large difference based on that model and sits alongside a dividend yield of about 3.07%.
  • On the other side, the 22.8x P/E is higher than both industry and peer averages, and the company carries what the analysis describes as a high level of debt, which are factors that can justify the premium only if the forecast 11.2% annual earnings growth and margin improvement are delivered.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Lamb Weston Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mixed sentiment around Lamb Weston Holdings leaves you unsure, take a closer look at the underlying figures and form your own view using the 3 key rewards and 2 important warning signs.

See What Else Is Out There

Lamb Weston Holdings currently faces margin pressure at a 4.6% net profit margin, a relatively high P/E versus peers, and what is described as a high level of debt.

If you want stocks where pricing and balance sheet strength work more clearly in your favor right now, start comparing companies in the solid balance sheet and fundamentals stocks screener (49 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.