Cal-Maine Foods (NASDAQ: CALM) reported financial results for its third quarter of fiscal 2026, showing declines in revenue and earnings compared with the prior-year period as egg prices normalized following elevated levels in 2025.
The Ridgeland, Mississippi-based egg producer posted net sales of $667.0 million for the quarter ended February 28, 2026, down 53% from $1.4 billion a year earlier. Net income attributable to the company fell to $50.5 million, compared with $508.5 million in the same quarter last year, while diluted earnings per share declined to $1.06 from $10.38.
The results reflect a shift in market conditions following a period of unusually high egg prices in 2025, which had been influenced by supply disruptions tied to avian influenza. The company indicated that improved supply and more stable purchasing patterns contributed to lower wholesale prices during the latest quarter.
#Revenue Declines Driven by Egg Price Normalization
Sales across Cal-Maine’s core egg business declined significantly, primarily due to lower pricing. Shell egg sales totaled $572.3 million, down 57.5% year over year, with conventional egg sales falling 72.1% as average selling prices dropped sharply.
Specialty egg sales, which include cage-free and organic varieties, declined by a smaller margin of 12.1%, reflecting a combination of lower prices and higher volumes. The company reported that specialty egg volumes increased 5.8% during the quarter, indicating continued demand growth in that segment.
Prepared foods emerged as a notable area of growth. Sales in that category rose to $63.6 million, up more than fourfold from the prior year, driven largely by acquisitions and increased production volumes.
Despite this growth, overall profitability declined. Gross profit fell to $119.3 million from $716.1 million a year earlier, while operating income decreased to $35.9 million from $635.7 million.
#Shift Toward Diversified Product Mix
The company has been increasing its focus on specialty eggs and prepared foods as part of a broader diversification strategy. During the quarter, specialty eggs accounted for 50.5% of total shell egg sales, while prepared foods represented 9.5% of net sales.
Combined, these segments made up more than half of total sales, reflecting a shift away from reliance on conventional egg pricing. Over the first three quarters of fiscal 2026, specialty eggs and prepared foods together represented 45.7% of total net sales.
The company also completed the acquisition of certain assets from Creighton Brothers LLC and its affiliates after the quarter ended, aiming to expand its production capabilities and integrate operations across its supply chain.
In a statement accompanying the results, Chief Executive Officer Sherman Miller said the quarter demonstrated how the company’s performance is influenced not only by market pricing but also by its product mix, cost management, and operational strategy. He attributed lower egg prices to improved supply conditions and reduced disruptions compared with the prior year.
#Industry Context and Outlook
The egg industry has experienced volatility in recent years, largely due to outbreaks of highly pathogenic avian influenza (HPAI), which disrupted supply and drove price spikes. As flock sizes recover and supply stabilizes, prices have moderated, affecting revenue across producers.
Cal-Maine reported that the average national layer flock increased year over year, while depopulations tied to disease declined significantly in the most recent quarter. These trends have contributed to more balanced market conditions but have also reduced pricing power compared with peak periods.
Looking ahead, the company said it expects continued growth in its prepared foods segment as production capacity expands and utilization improves. Management indicated that demand for these products remains steady, although the pace of recovery will depend on operational execution and market conditions.
The company also noted ongoing investments in its supply chain and product offerings, including efforts to expand specialty egg production and integrate newly acquired assets. These initiatives are intended to support more consistent earnings over time, though their impact may vary depending on commodity pricing and consumer demand trends.
As with other agricultural producers, Cal-Maine faces risks related to input costs, disease outbreaks, regulatory changes, and shifting consumer preferences. The company stated that forward-looking expectations remain subject to these and other uncertainties outlined in its regulatory filings.
In addition to reporting earnings, Cal-Maine said it repurchased approximately 329,830 shares during the quarter for $24.3 million and declared a quarterly cash dividend of about $0.36 per share, payable in May 2026.