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Cal Maine Foods Q2 2026 Net Margin Surge Reinforces Bullish Narratives

Simply Wall St · 3d ago

Q2 2026 earnings snapshot

Cal-Maine Foods (CALM) has just posted another profitable quarter, with Q1 2026 revenue at US$922.6 million and basic EPS of US$4.13 setting the tone for its latest Q2 2026 update. The company has seen revenue move from US$640.8 million in Q4 2024 to US$954.7 million in Q2 2025 and US$1.42 billion in Q3 2025, while quarterly EPS over that stretch ranged from US$2.32 to US$10.42, feeding into trailing twelve month EPS of US$26.12 on revenue of about US$4.4 billion. With net profit margin over the last year at 28.9%, investors are likely to assess this earnings report in the context of how durable those margins appear from here.

See our full analysis for Cal-Maine Foods.

With the latest numbers on the table, the next step is to see how this earnings run aligns with the widely followed narratives around Cal-Maine, and where the data starts to push back on those stories.

Curious how numbers become stories that shape markets? Explore Community Narratives

NasdaqGS:CALM Earnings & Revenue History as at Jan 2026
NasdaqGS:CALM Earnings & Revenue History as at Jan 2026

Margins and earnings running well ahead of history

  • Over the last 12 months, Cal-Maine earned US$1.27b in net income on US$4.40b of revenue, with net profit margin at 28.9% compared with 16.1% a year earlier and trailing EPS at US$26.12 versus a 5 year average earnings growth rate of 51.4% per year.
  • Bulls point to this kind of earnings power as the core of their case, and the recent numbers heavily support that view:
    • Year over year earnings growth of 198.5% on the trailing 12 month figures lines up with the idea that the business can convert strong pricing and volume into profit when conditions are favorable.
    • At the same time, the move in net profit margin from 16.1% to 28.9% shows that recent profitability has been running far above last year’s level, which bullish investors often treat as evidence that the underlying model can support high returns when the cycle is supportive.
Over the past year, bulls argue that Cal-Maine’s jump in profitability could mark a step change in what the business can earn rather than a one off spike, and the scale of the earnings and margin expansion makes that argument hard to ignore at first glance. 📊 Read the full Cal-Maine Foods Consensus Narrative.

Cheap P/E and wide gap to DCF fair value

  • On the trailing numbers, Cal-Maine trades on a P/E of about 3x compared with roughly 19.9x for the wider US Food industry and 20.1x for peers, while the current share price of US$77.81 sits well below the DCF fair value of US$327.30 that has been provided.
  • What stands out for bullish investors is how those valuation figures line up with the recent earnings strength:
    • The combination of EPS of US$26.12 over the last 12 months and a 3x P/E multiple is a very low earnings multiple compared with an industry that is closer to 20x, which bullish holders often read as the market giving little credit for the recent profitability.
    • Analyst targets cited in the data point to a price of US$95.50, which is about 22.7% above the current US$77.81 share price, and that, together with the DCF fair value of US$327.30, is frequently used by bulls to argue that the gap between price and valuation metrics is unusually wide.

Strong trailing growth versus forecast declines

  • While trailing EPS grew 198.5% over the past year and 51.4% per year over five years, the same data set shows analysts expecting earnings to decline by about 21.6% per year and revenue to slip by around 1.3% per year over the next three years, paired with commentary that the dividend record has been unstable.
  • Bears focus on that contrast, and the figures give them material backing for a cautious stance:
    • The forecast 21.6% annual earnings decline and 1.3% annual revenue decline stand in sharp contrast to the very large trailing growth rates, which skeptical investors see as a sign that current profitability may be above what analysts expect to persist.
    • On top of that, the reference to an unstable dividend track record means income focused investors cannot simply assume that recent high earnings will translate into a steadily rising payout, which fits with a more guarded, bearish interpretation of how much of today’s strength will flow through to shareholders over time.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Cal-Maine Foods's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

For all the strong recent earnings, analysts are still expecting about 21.6% annual EPS declines and 1.3% annual revenue declines over the next three years.

If that potential drop in growth feels uncomfortable, you can shift your focus to companies with steadier earnings and revenue trends by checking out stable growth stocks screener (2146 results) today.

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.