Hormel Foods Reports Third Quarter Fiscal 2026 Results

Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the third quarter of fiscal 2026, which ended July 26, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.

EXECUTIVE SUMMARY — THIRD QUARTER

• Net sales of $2.96 billion; organic net sales ¹ down 2%
• Operating income of $111 million; adjusted operating income ¹ of $266 million
• Operating margin of 3.7%; adjusted operating margin ¹ of 9.0%
• Earnings before income taxes of $103 million; adjusted earnings before income taxes ¹ of $258 million
• Diluted earnings per share of $0.11; adjusted diluted earnings per share ¹ of $0.37
• Cash flow from operations of $241 million

EXECUTIVE COMMENTARY

“We delivered solid third quarter results, growing our adjusted earnings and continuing to advance our fiscal 2026 objectives,” said Jeff Ettinger, interim chief executive officer. “With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026 and remain confident in delivering adjusted earnings growth for the year consistent with, or above, our long-term algorithm.”

“We continued to make progress against our strategic priorities during the quarter,” said John Ghingo, president and chief executive officer-elect. “While net sales declined, the results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure. At the same time, several of our Retail priority brands delivered growth, and Foodservice once again outperformed industry trends, supported by the strength of our solutions-based offerings and operator partnerships. As we continue to enhance our capabilities and sharpen our focus, we remain committed to disciplined execution and positioning the company for long-term success.”

FULL YEAR FISCAL 2026 GUIDANCE

For fiscal 2026, the Company:

• Expects net sales to be in the range of $12.1 billion to $12.2 billion, reflecting organic net sales ¹ growth of 1% to 2%
• Updates operating income guidance to be in the range of $0.83 billion to $0.87 billion, which includes the estimated loss related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia, and a litigation settlement
• Raises adjusted operating income ¹ guidance to be in the range of $1.08 billion to $1.12 billion, reflecting growth of 6% to 10%
• Updates diluted earnings per share guidance to be in the range of $1.06 to $1.12
• Raises adjusted diluted earnings per share ¹ guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%

PORTFOLIO SHAPING

During the third quarter of fiscal 2026, the Company announced a definitive agreement to sell its Brazil operations, operated under the CERATTI ^® brand, and classified the business as held for sale. The divestiture reflects the Company’s ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.

The transaction successfully closed in the early part of the fourth quarter of fiscal 2026. The expected impacts of the divestiture are reflected in the Company’s updated fiscal 2026 guidance ranges. Beginning in the fourth quarter of fiscal 2026, the impact of the divestiture will be excluded from year-over-year comparisons in the Company’s non-GAAP organic volume ^¹ and organic net sales ^¹ metrics.

SEGMENT HIGHLIGHTS – THIRD QUARTER

Retail

• Volume down 9%; organic volume ¹ down 9%
• Net sales down 4%; organic net sales ¹ down 3%
• Segment profit down 4%

Organic net sales ¹ decreased in the third quarter of fiscal 2026, as declines in commodity turkey and private label snack nuts were partially offset by strong performance in value-added turkey offerings, contract manufacturing and PLANTERS ^® snack nuts. Additional priority brands that delivered solid growth during the quarter include the SPAM ^® family of products, APPLEGATE ^® natural and organic meats, and HORMEL ^® chili. Segment profit decreased for the third quarter of fiscal 2026, as lower net sales and higher logistics expenses were partially offset by lower selling, general and administrative expenses.

Foodservice

• Volume down 1%; organic volume ¹ down 1%
• Net sales up 2%; organic net sales ¹ up 2%
• Segment profit up 3%

The third quarter of fiscal 2026 marked the 12th consecutive quarter of organic net sales ¹ growth for the Foodservice segment. Organic net sales ^¹ growth was broad-based despite the impact of lower commodity-based pricing in portions of the portfolio. Growth was driven by multiple product groups and categories, led by significant contributions from premium prepared proteins, branded pepperoni and JENNIE-O ^® turkey. Additional branded products, including AUSTIN BLUES ^® smoked meats, HORMEL ^® NATURAL CHOICE ^® meats and HORMEL ^® FIRE BRAISED™ meats, also delivered strong net sales results. Segment profit increased for the third quarter of fiscal 2026, as higher net sales and favorable pork input costs were partially offset by higher logistics and selling, general and administrative expenses.

International

• Volume down 11%; organic volume ¹ down 11%
• Net sales down 5%; organic net sales ¹ down 4%
• Segment profit down 254%; adjusted segment profit ¹ flat

For the International segment, organic net sales ^¹ declined in the third quarter of fiscal 2026. While branded export demand remained resilient during the quarter, the recognition of certain SPAM ^® export sales was adversely impacted due to a one-time legal-entity transition. Segment profit was significantly impacted by a non-cash impairment charge. Adjusted segment profit ¹ was comparable to the prior year, as minority investment performance offset weaker results in Brazil.

ADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026

Income Statement

• Operating margin and adjusted operating margin ¹ were 3.7% and 9.0%, respectively, compared to 7.9% and 8.4%, respectively, in the prior year.
  
  
• Selling, general and administrative expenses as a percent of net sales and adjusted selling, general and administrative expenses as a percent of net sales ¹ were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%, respectively, in the prior year.
  
  
• Advertising investments were $34 million, compared to $41 million last year.
  
  
• Significant discrete pre-tax items included: a loss of $56 million related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia of $48 million and a litigation settlement of $38 million.
  
  
• The effective tax rate was 42.3%, compared to 22.3% last year, and was significantly impacted by one-time items.
  
  

Cash Flow Statement

• Cash flow from operations was $241 million, an increase of 54% compared to the prior year.
  
  
• Capital expenditures were $68 million, compared to $72 million last year. The largest projects in the third quarter of fiscal 2026 were related to infrastructure enhancements and investments in data and technology.
  
  
• Depreciation and amortization expense was $66 million, compared to $65 million last year.
  
  
• The Company returned $161 million to stockholders during the quarter through dividends.
  
  

Balance Sheet

• The Company remained in a strong financial position at quarter end, with ample liquidity and a conservative level of debt.
  
  
• Cash on hand, excluding assets held for sale, was $840 million at quarter end, an increase of $169 million from the end of fiscal 2025.
  
  
• Inventories were $1.8 billion at quarter end, an increase of $54 million from the end of fiscal 2025.
  
  

PRESENTATION

A conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is available at hormelfoods.com by clicking on “Investors.” The call will also be available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983 (international) and providing the conference ID 915 330 197. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Aug. 27, 2026, and will remain on the website for one year.

Click here to download full release.

END NOTES

¹ Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.

####

Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS ^®, SKIPPY ^®, SPAM ^®, HORMEL ^® NATURAL CHOICE ^®, APPLEGATE ^®, WHOLLY ^®, HORMEL ^® BLACK LABEL ^®, COLUMBUS ^®, JENNIE-O ^® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America’s most responsible companies by Newsweek, was recognized by TIME magazine as one of the World’s Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.

This news release contains forward-looking statements, which are based on the Company’s current assumptions and expectations. These statements are typically accompanied by the words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “seek,” “target,” “will,” “would,” or similar words or expressions. The principal forward-looking statements in this news release include statements regarding the Company’s fiscal 2026 guidance and future financial and operational performance.

All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors that could cause the Company’s actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and the Company’s recent corporate restructuring plan; risk of unfavorable changes in the Company’s relationships with third parties; risk of the Company’s inability to protect information technology (IT) systems against, or effectively respond to, cyberattacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company’s products; risks related to the Company’s ability to respond to changing consumer preferences; damage to the Company’s reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at hormelfoods.com in the “Investors” section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company’s business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement except as otherwise required by law.

Note: Due to rounding, numbers presented throughout this press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.

Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.