Conagra Brands (NYSE:CAG), the company behind iconic grocery and snack brands like Slim Jim, Healthy Choice, Hunt’s, and Birds Eye, reported third-quarter fiscal 2025 net sales of $2.84 billion, a 6.3% decline year-over-year. The dip was largely attributed to constrained supply in certain frozen categories and softness in volume across parts of the portfolio.

Still, Conagra maintained its full-year guidance, emphasizing cost discipline, pricing normalization, and ongoing recovery in product availability.

Technology was not a focal point in the Q3 earnings discussion, a noticeable contrast to June 2024, when Conagra announced a sweeping AI initiative in partnership with Microsoft and EY aimed at embedding artificial intelligence across supply chain, IT, R&D, and brand operations.

The absence of updates on this initiative in the most recent call raises questions about its current status and strategic weight, especially as digital transformation remains a competitive priority across the food and beverage industry.

Why It Matters: For CIOs and tech-forward executives, Conagra’s silence on recent AI and digital transformation progress suggests a potential deprioritization, or at least a communication gap, in its technology narrative. The 2024 AI partnership signaled a strategic embrace of enterprise-wide digital capabilities, but the absence of updates in the Q3 call raises questions about execution, integration, or shifting priorities. In a sector where visibility into tech initiatives increasingly matters for agility and resilience, stakeholders may expect more consistent follow-through and updates on digital ambitions.

• Sales Decline Driven by Volume and Supply Constraints: Conagra reported net sales of $2.84 billion, down 6.3% year-over-year, with a 5.2% organic net sales decline at the core. The company cited limited supply in key frozen platforms, particularly meals with chicken and frozen vegetables—as the main driver, along with softer volume in snacks. Despite the top-line pressure, Conagra reaffirmed its full-year guidance, pointing to improved service levels and effective cost management.

• IT Modernization Briefly Touched, Without Detail: Executives mentioned that Conagra is “continuing to modernize [its] IT infrastructure,” but offered no detail on systems, progress, or integration outcomes. The comment, made by CEO Sean Connolly, echoed past technology priorities but lacked specifics, leaving unclear how much progress has been made on earlier modernization goals.

• AI Initiative Not Addressed: In June 2024, Conagra announced a wide-ranging AI collaboration with Microsoft and EY aimed at embedding artificial intelligence across supply chain, IT, demand science, and brand functions. That initiative, which emphasized a human-centered and responsible approach to AI, received no mention in the Q3 2025 call, an omission that may raise questions about execution or shifting priorities.

• Data Utilization Referenced, But Execution Unclear: Leadership mentioned the importance of “using data more effectively,” a theme that aligns with the company’s past focus on analytics and digital enablement. However, no updates were provided on tools, data platforms, or tangible outcomes. The lack of specificity leaves uncertainty about how data-driven initiatives are shaping day-to-day operations or strategic planning.

• Lack of Clear Technology Vision: Unlike many of its food and beverage counterparts, Conagra’s Q3 2025 commentary lacked a cohesive technology narrative or long-term digital strategy. While competitors continue to showcase progress in AI, supply chain digitization, and consumer-facing platforms, Conagra offered only passing references to IT upgrades and automation. The absence of a forward-looking tech roadmap may leave CIOs and tech-focused stakeholders questioning the company’s digital positioning in an increasingly innovation-driven sector.

Go Deeper -> Conagra Brands Earnings Call Transcript – MarketBeat