Lamb Weston Holdings, Inc. (NYSE:LW) shares enjoy substantial gains Wednesday, on the release of its fiscal fourth-quarter results, and provided its outlook for fiscal 2026.

Net sales increased $63.9 million, to $1,675.8 million, up 4% versus the prior-year quarter. Volume increased 8% compared to the prior-year quarter due to contract wins across each of the company's channels and geographic regions and, to a lesser extent, lapping an approximately $22 million negative impact to sales related to a previously announced voluntary product withdrawal in the prior year quarter.

Gross profit declined $45.6 million versus the prior-year quarter to $342.3 million. Adjusted Gross Profit declined $19.5 million versus the prior year quarter to $343.5 million, due to unfavorable price/mix, which was partially offset by lower manufacturing costs per pound. Favorable manufacturing costs per pound related to lapping an approximately $40 million negative impact of the voluntary product withdrawal in the prior year and lower current year raw potato costs.

Net income declined $9.7 million from the prior year quarter to $119.9 million. Diluted EPS declined $0.04 from the prior-year quarter to $0.85. Adjusted Net Income increased $9.1 million versus the prior year quarter to $122.8 million, and Adjusted Diluted EPS increased $0.09 from the prior year quarter to $0.87.

LW shares hiked $7.75, or 14.9%, early Wednesday morning to $56.52.

COMTEX_467506159/2559/2025-07-23T09:42:37