HORMEL FOODS REPORTS FIRST QUARTER FISCAL 2026 RESULTS
Company Achieves Net Sales of $3 billion and Organic Net Sales 1 Growth of 2%
Company Reports Diluted EPS of $0.33; Adjusted Diluted EPS 1 of $0.34
Updates GAAP Guidance; Reiterates Adjusted Full Year Fiscal 2026 Guidance
AUSTIN, Minn., Feb. 26, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the first quarter of fiscal 2026, which ended January 25, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.
EXECUTIVE SUMMARY — FIRST QUARTER
EXECUTIVE COMMENTARY
"We delivered solid first quarter fiscal 2026 results, with adjusted diluted earnings per share 1 of $0.34, supported by our fifth consecutive quarter of organic net sales 1 growth," said Jeff Ettinger, interim chief executive officer. "Our performance this quarter demonstrates the strength of our value-added, protein-centric portfolio and our disciplined execution against our key priorities, including pricing actions that are helping to close the gap between profitability and top-line growth."
"This was an encouraging start to the year, with strong performance by our Foodservice and International segments," said John Ghingo, president. "We continue to solidify our position as a consumer-focused protein leader with a diversified portfolio of market-leading brands. These results reinforce our confidence in our adjusted full year fiscal 2026 guidance."
FULL YEAR FISCAL 2026 GUIDANCE
For fiscal 2026, the Company:
Updated
Previous
Net Sales
$12.2 - $12.5 billion
$12.2 - $12.5 billion
Organic Net Sales 1 Growth Rate
1% - 4%
1% - 4%
Diluted Earnings per Share
$1.37 - $1.46
$1.29 - $1.39
Adj. Diluted Earnings per Share 1
$1.43 - $1.51
$1.43 - $1.51
Adjustments to operating income and diluted earnings per share guidance for fiscal 2026 include the impact from the sale of the Justin's ® branded business, which was finalized in the first quarter.
This guidance does not include the impacts of the recently announced sale of the whole-bird turkey business expected to close in the second quarter of fiscal 2026. The expected reduction of fiscal 2026 net sales from this transaction is approximately $50 million; the Company also expects minimal impact to expected adjusted diluted earnings per share 1. This transaction-related guidance does not reflect any items that are unknown at this time, including the impacts of gains/losses on the transaction that we are unable to reasonably estimate while evaluating the accounting implications.
PORTFOLIO SHAPING
The Company previously announced it has entered into a definitive agreement to sell its whole-bird turkey business, reflecting its ongoing portfolio-shaping efforts. The transaction is expected to close by the end of the Company's second quarter of fiscal 2026. Financial details of the whole-bird turkey transaction have not been disclosed. The Company will provide additional details on the transaction impacts following its completion.
"Our deliberate strategy around shaping our portfolio and sharpening our focus on value-added protein offerings has been demonstrated by our recently completed sale of a majority interest in the Justin's ® branded business and our definitive agreement to sell the whole-bird turkey business," said Ghingo. "These strategic transactions enable us to focus resources on high-growth opportunities that meet evolving consumer needs while reducing our exposure to volatile commodity markets. The Jennie-O ® branded portfolio remains a strategic and important part of our growth strategy, and this move positions us to accelerate growth in value-added turkey categories where we have a clear consumer advantage."
SEGMENT HIGHLIGHTS – FIRST QUARTER
Retail
Organic volume 1 and organic net sales 1 declined in the first quarter of fiscal 2026. Organic volume 1 and organic net sales 1 performance was significantly impacted by previously anticipated factors, including the strategic exit from select non-core private label snack nut items and declines in branded and private label packaged deli items. Key priority brands delivered year-over-year net sales growth, including Jennie-O ® ground turkey and Planters ® snack nuts. Segment profit declined due to lower sales, higher raw material input costs and higher logistics expenses.
Foodservice
First quarter organic net sales 1 for the Foodservice segment was up 7%, marking the 10 th consecutive quarter of organic net sales 1 growth for the segment. Growth was broad-based across multiple channels and categories, with strong performance across the customized solutions business, premium prepared proteins and branded pepperoni. While organic volume 1 was flat, net sales growth was supported by our solutions-based products and the capabilities of our direct-selling organization. Segment profit increased for the first quarter of fiscal 2026, primarily driven by the benefit of pricing actions, which remained aligned with market dynamics.
International
For the International segment, organic volume 1 and organic net 1 sales grew in the first quarter of fiscal 2026. Organic net sales 1 growth was driven by strong performance in our multinational businesses and branded exports, led by SPAM ® luncheon meat. Organic volume 1 growth in the segment was primarily driven by growth in China and strong branded exports, led by SPAM ® luncheon meat. International segment profit increased in the first quarter of fiscal 2026 as lower SG&A spend and growth in China were partially offset by lower export margins.
ADDITIONAL FINANCIAL DETAILS – FIRST QUARTER FISCAL 2026
Income Statement
Cash Flow Statement
Balance Sheet
PRESENTATION
A conference call will be webcast at 7 a.m. CT on Feb. 26, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 800-549-8228 (toll free) or 646-564-2877 (international) and providing the conference ID 71131. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Feb. 26, 2026, and will remain on the website for one year.
ABOUT HORMEL FOODS
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue across more than 80 countries worldwide. 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.
FORWARD-LOOKING STATEMENTS
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 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 the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyberattacks, security breaches or other IT interruptions; 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 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.
END NOTES
INVESTOR CONTACT
Florence Makope
[email protected]
MEDIA CONTACT
Media Relations
[email protected]
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
Quarter Ended
January 25,
2026
January 26,
2025
Net Sales
$ 3,027,317
$ 2,988,813
Cost of Products Sold
2,557,742
2,513,581
Gross Profit
469,575
475,232
Selling, General, and Administrative
241,698
263,013
Equity in Earnings of Affiliates
15,820
16,111
Operating Income
243,697
228,330
Interest Income
6,528
7,543
Interest Expense
19,728
19,462
Other Income (Expense), Net
3,815
1,661
Earnings Before Income Taxes
234,312
218,073
Provision for Income Taxes
52,542
47,543
Effective Tax Rate
22.4 %
21.8 %
Net Earnings
181,769
170,530
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest
(32)
(45)
Net Earnings Attributable to Hormel Foods Corporation
$ 181,801
$ 170,575
Net Earnings Per Share:
Basic
$ 0.33
$ 0.31
Diluted
$ 0.33
$ 0.31
Weighted-average Shares Outstanding:
Basic
550,477
549,460
Diluted
550,706
549,854
Dividends Declared Per Share
$ 0.2925
$ 0.2900
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands
Unaudited
January 25, 2026
October 26, 2025
Assets
Cash and Cash Equivalents
$ 867,906
$ 670,679
Short-term Marketable Securities
33,302
32,909
Accounts Receivable
696,252
784,812
Inventories
1,647,271
1,747,279
Taxes Receivable
58,808
96,791
Prepaid Expenses and Other Current Assets
84,702
73,187
Total Current Assets
3,388,240
3,405,656
Goodwill
4,888,532
4,924,087
Intangible Assets
1,588,104
1,647,297
Pension Assets
209,262
211,826
Investments in Affiliates
577,058
533,984
Other Assets
423,755
431,500
Property, Plant, and Equipment, Net
2,241,482
2,238,770
Total Assets
$ 13,316,433
$ 13,393,119
Liabilities and Shareholders' Investment
Accounts Payable & Accrued Expenses
$ 731,288
$ 787,350
Accrued Marketing Expenses
129,824
113,947
Employee-related Expenses
224,470
273,402
Interest and Dividends Payable
175,868
180,700
Taxes Payable
4,983
18,752
Current Maturities of Long-term Debt
6,485
6,646
Total Current Liabilities
1,272,917
1,380,796
Long-term Debt Less Current Maturities
2,851,007
2,850,778
Pension and Postretirement Benefits
356,108
358,984
Deferred Income Taxes
663,854
661,349
Other Long-term Liabilities
219,340
225,397
Accumulated Other Comprehensive Loss
(233,023)
(243,646)
Other Shareholders' Investment
8,186,231
8,159,461
Total Liabilities and Shareholders' Investment
$ 13,316,433
$ 13,393,119
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
Quarter Ended
January 25,
2026
January 26,
2025
Operating Activities
Net Earnings
$ 181,769
$ 170,530
Depreciation and Amortization
67,095
65,872
Decrease (Increase) in Working Capital, Net of Divestitures
110,519
44,665
Other
(10,170)
28,139
Net Cash Provided by (Used in) Operating Activities
349,214
309,206
Investing Activities
Net Sale (Purchase) of Securities
(323)
(1,387)
Proceeds from Sale of Business
78,853
13,643
Purchases of Property, Plant, and Equipment
(68,993)
(72,167)
Proceeds from (Purchases of) Affiliates and Other Investments
(1,593)
(1,393)
Other
5
972
Net Cash Provided by (Used in) Investing Activities
7,948
(60,333)
Financing Activities
Repayments of Long-term Debt and Finance Leases
(1,825)
(2,202)
Dividends Paid on Common Stock
(159,501)
(154,980)
Other
(1,106)
14,120
Net Cash Provided by (Used in) Financing Activities
(162,433)
(143,063)
Effect of Exchange Rate Changes on Cash
2,498
(7,294)
Increase (Decrease) in Cash and Cash Equivalents
197,228
98,516
Cash and Cash Equivalents at Beginning of Year
670,679
741,881
Cash and Cash Equivalents at End of Period
$ 867,906
$ 840,398
HORMEL FOODS CORPORATION
SEGMENT DATA
In thousands
Unaudited
Quarter Ended
January 25,
2026
January 26,
2025
% Change
Volume (lbs.)
Retail
693,884
736,886
(5.8)
Foodservice
244,419
243,853
0.2
International
75,461
74,569
1.2
Total Volume (lbs.)
1,013,764
1,055,308
(3.9)
Net Sales
Retail
$ 1,847,806
$ 1,890,133
(2.2)
Foodservice
998,227
930,185
7.3
International
181,284
168,495
7.6
Total Net Sales
$ 3,027,317
$ 2,988,813
1.3
Segment Profit
Retail
$ 96,190
$ 119,147
(19.3)
Foodservice
156,541
138,826
12.8
International
22,910
20,845
9.9
Total Segment Profit
275,641
278,818
(1.1)
Net Unallocated Expense
41,298
60,700
(32.0)
Noncontrolling Interest
(32)
(45)
30.1
Earnings Before Income Taxes
$ 234,312
$ 218,073
7.4
APPENDIX: NON-GAAP MEASURES
This press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company's results and business trends relative to past performance and the Company's competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.
Transform and Modernize (T&M) Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that non-recurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.
Gain or Loss on Sale of Business
In the first quarter of fiscal 2026, the Company sold 51% of its equity interest in Justin's, LLC, resulting in a gain on the sale. In the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. The Company believes the one-time impacts from these sales are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts.
Legal Matters
From time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.
Litigation Settlements
In fiscal 2025, the Company entered into a settlement agreement with a plaintiff in a pending antitrust litigation.
Corporate Restructuring Plan
In the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company's future needs, while enabling continued investment in the Company's growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes the charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.
Consulting Agreement
On October 27, 2025, the Company entered into an agreement with its former Chief Executive Officer (CEO), pursuant to which the former CEO is expected to provide consulting services to the Company until April 2027. Consulting costs related to the agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes non-recurring costs associated with the consulting agreement are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods; therefore, the Company is excluding these discrete costs.
The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.
HORMEL FOODS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
Unaudited
Quarter Ended
In thousands, except per share amounts
January 25,
2026
January 26,
2025
Cost of Products Sold (GAAP)
$ 2,557,742
$ 2,513,581
Transform and Modernize Initiative (1)
(382)
(186)
Adjusted Cost of Products Sold (Non-GAAP)
$ 2,557,360
$ 2,513,395
SG&A (GAAP)
$ 241,698
$ 263,013
Transform and Modernize Initiative (2)
(10,543)
(13,968)
Gain (Loss) on Sale of Business
23,508
(11,324)
Corporate Restructuring Plan
(8,476)
—
Consulting Agreement
(7,775)
—
Litigation Settlements
—
(240)
Adjusted SG&A (Non-GAAP)
$ 238,412
$ 237,481
Operating Income (GAAP)
$ 243,697
$ 228,330
Transform and Modernize Initiative (1)(2)
10,925
14,155
(Gain) Loss on Sale of Business
(23,508)
11,324
Corporate Restructuring Plan
8,476
—
Consulting Agreement
7,775
—
Litigation Settlements
—
240
Adjusted Operating Income (Non-GAAP)
$ 247,364
$ 254,049
Earnings Before Income Taxes (GAAP)
$ 234,312
$ 218,073
Transform and Modernize Initiative (1)(2)
10,925
14,155
(Gain) Loss on Sale of Business
(23,508)
11,324
Corporate Restructuring Plan
8,476
—
Consulting Agreement
7,775
—
Litigation Settlements
—
240
Adjusted Earnings Before Income Taxes (Non-GAAP)
$ 237,979
$ 243,791
Provision for Income Taxes (GAAP)
$ 52,542
$ 47,543
Transform and Modernize Initiative (1)(2)
2,677
3,086
(Gain) Loss on Sale of Business
(5,760)
2,469
Corporate Restructuring Plan
2,077
—
Consulting Agreement
—
—
Litigation Settlements
—
52
Adjusted Provision for Income Taxes (Non-GAAP)
$ 51,536
$ 53,149
Net Earnings Attributable to Hormel Foods Corporation (GAAP)
$ 181,801
$ 170,575
Transform and Modernize Initiative (1)(2)
8,248
11,069
(Gain) Loss on Sale of Business
(17,749)
8,855
Corporate Restructuring Plan
6,400
—
Consulting Agreement
7,775
—
Litigation Settlements
—
188
Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP)
$ 186,475
$ 190,687
Diluted Earnings Per Share (GAAP)
$ 0.33
$ 0.31
Transform and Modernize Initiative (1)(2)
0.01
0.02
(Gain) Loss on Sale of Business
(0.03)
0.02
Corporate Restructuring Plan
0.01
—
Consulting Agreement
0.01
—
Litigation Settlements
—
—
Adjusted Diluted Earnings Per Share (Non-GAAP)
$ 0.34
$ 0.35
SG&A as a Percent of Net Sales (GAAP)
8.0 %
8.8 %
Transform and Modernize Initiative (2)
(0.3)
(0.5)
Gain (Loss) on Sale of Business
0.8
(0.4)
Corporate Restructuring Plan
(0.3)
—
Consulting Agreement
(0.3)
—
Litigation Settlements
—
—
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)
7.9 %
7.9 %
Operating Margin (GAAP)
8.0 %
7.6 %
Transform and Modernize Initiative (1)(2)
0.4
0.5
(Gain) Loss on Sale of Business
(0.8)
0.4
Corporate Restructuring Plan
0.3
—
Consulting Agreement
0.3
—
Litigation Settlements
—
—
Adjusted Operating Margin (Non-GAAP)
8.2 %
8.5 %
(1)
Comprised primarily of asset write-offs and severance related to supply chain and portfolio optimization.
(2)
Comprised primarily of project-based external consulting fees.
ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)
The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of the Company's controlling equity interest in Justin's, LLC in the first quarter of fiscal 2026.
Quarter Ended
January 25, 2026
January 26, 2025
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
693,884
736,886
(1,413)
735,472
(5.7)
Foodservice
244,419
243,853
(77)
243,777
0.3
International
75,461
74,569
(13)
74,556
1.2
Total Volume (lbs.)
1,013,764
1,055,308
(1,503)
1,053,805
(3.8)
Net Sales
Retail
$ 1,847,806
$ 1,890,133
$ (7,921)
$ 1,882,212
(1.8)
Foodservice
998,227
930,185
(506)
929,679
7.4
International
181,284
168,495
(109)
168,386
7.7
Total Net Sales
$ 3,027,317
$ 2,988,813
$ (8,536)
$ 2,980,277
1.6
Forward-looking GAAP to Non-GAAP Measures
The information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.
Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)
To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale of the Justin's ® branded business in the first quarter of fiscal 2026.
In billions
Fiscal 2026 Outlook
2025 Results
Change
Net Sales (GAAP)
$ 12.2
-
$ 12.5
$ 12.1
1 %
-
3 %
Divestitures
—
-
—
(0.1)
Organic Net Sales (Non-GAAP)
$ 12.2
-
$ 12.5
$ 12.0
1 %
-
4 %
Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Resulting in an adjusted operating income range (non-GAAP) of $1,059 million to $1,118 million.
Fiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.43 to $1.51.
1
This does not include the effects of the sale of the whole-bird turkey business, as the Company is unable to reasonably estimate the impact while evaluating the accounting implications.
SOURCE Hormel Foods Corporation