Lamb Weston (LW) Climbs 16.3% on Bullish 2026 Outlook

We recently published 10 Stocks With Eye-Popping Double-Digit Gains. Lamb Weston Holdings, Inc. (NYSE:LW) is one of the biggest performers on Wednesday.

Lamb Weston soared by 16.31 percent on Wednesday to close at $57.19 apiece as investors cheered its higher revenue outlook for fiscal year 2026 alongside cost-saving measures to improve profitability and cash flow.

In a statement, Lamb Weston Holdings, Inc. (NYSE:LW) said that it was targeting to achieve net sales between $6.35 billion and $6.55 billion in fiscal year 2026, or a 1.5 percent increase year-on-year.

Additionally, it would implement cost-saving measures to save the company as much as $250 million, including $200 million in annualized run rate savings, and $120 million of favorable working capital improvements by year-end fiscal 2027.

Lamb Weston Holdings, Inc. (NYSE:LW) said that part of the measures will include the layoff of some 4 percent of its total workforce and the elimination of unfilled positions.

In the fourth quarter of fiscal year 2025,  Lamb Weston Holdings, Inc. (NYSE:LW) dropped its net income by 7.5 percent to $119.9 million from $129.6 million in the same period last year. Net sales, on the other hand, inched up by 4 percent to $1.675 billion from $1.611 billion year-on-year.

For the full-year period, net income declined by 50.76 percent to $357.2 million from $725.5 million, while net sales ended flat at $6.4 billion.

While we acknowledge the potential of LW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.