Lamb Weston raises FY26 outlook with volume gains and cost cuts despite price drops

Lamb Weston reported Q3 FY26 results showing volume increases that offset price declines, leading to improved net sales and EBITDA guidance for the fiscal year. The company plans significant capital expenditure reductions and a $250 million cost-saving initiative to enhance free cash flow and support long-term growth. Activist investor involvement and potential portfolio optimization add to the positive outlook as macroeconomic pressures ease. These factors support maintaining a Buy rating on the stock amid ongoing turnaround efforts.