HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS
Company Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third Quarter and Strong Year-to-Date Performance
AUSTIN, Minn., Aug. 27, 2026 /PRNewswire/ -- 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
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:
Updated
Previous
Net Sales
$12.1 - $12.2 billion
$12.2 - $12.5 billion
Organic Net Sales 1 Growth Rate
1% - 2%
1% - 4%
Diluted Earnings per Share
$1.06 - $1.12
$1.28 - $1.37
Adj. Diluted Earnings per Share 1
$1.45 - $1.51
$1.43 - $1.51
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 volume¹ and organic net sales¹ metrics.
SEGMENT HIGHLIGHTS – THIRD QUARTER
Retail
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
The third quarter of fiscal 2026 marked the 12 th consecutive quarter of organic net sales 1 growth for the Foodservice segment. Organic net sales¹ 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
For the International segment, organic net sales¹ 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
Cash Flow Statement
Balance Sheet
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.
ABOUT HORMEL FOODS
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.
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 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.
END NOTES
INVESTOR CONTACT
Jess Blomberg
[email protected]
MEDIA CONTACT
Laura Cederberg
[email protected]
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
Quarter Ended
Nine Months Ended
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Net Sales
$ 2,961,333
$ 3,032,876
$ 8,961,250
$ 8,920,499
Cost of Products Sold
2,489,818
2,545,567
7,501,653
7,473,524
Gross Profit
471,515
487,309
1,459,597
1,446,975
Selling, General, and Administrative
323,501
258,713
883,822
773,158
Equity in Earnings of Affiliates
(37,110)
11,153
(4,061)
42,614
Operating Income
110,904
239,748
571,713
716,430
Interest Income
6,661
4,877
19,667
18,596
Interest Expense
19,635
19,461
59,185
58,438
Other Income (Expense), Net
5,227
11,350
11,336
8,488
Earnings Before Income Taxes
103,157
236,514
543,531
685,076
Provision for Income Taxes
43,638
52,818
144,865
151,107
Effective Tax Rate
42.3 %
22.3 %
26.7 %
22.1 %
Net Earnings
59,519
183,696
398,666
533,968
Less: Net Earnings (Loss) Attributable
to Noncontrolling Interest
(55)
(46)
(182)
(366)
Net Earnings Attributable to Hormel
Foods Corporation
$ 59,573
$ 183,742
$ 398,848
$ 534,334
Net Earnings Per Share:
Basic
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Diluted
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Weighted-average Shares
Outstanding:
Basic
550,675
550,408
550,572
550,048
Diluted
551,074
550,723
550,898
550,396
Dividends Declared Per Share
$ 0.2925
$ 0.2900
$ 0.8775
$ 0.8700
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands
Unaudited
July 26, 2026
October 26, 2025
Assets
Cash and Cash Equivalents
$ 839,639
$ 670,679
Short-term Marketable Securities
28,807
32,909
Accounts and Other Receivables, Net
733,460
813,989
Inventories
1,801,567
1,747,279
Taxes Receivable
58,688
96,791
Prepaid Expenses and Other Current Assets
53,420
44,010
Assets Held for Sale
10,659
—
Total Current Assets
3,526,238
3,405,656
Goodwill
4,867,763
4,924,087
Intangible Assets
1,572,850
1,647,297
Pension Assets
204,135
211,826
Investments in Affiliates
527,864
533,984
Other Assets
430,139
431,500
Property, Plant, and Equipment, Net
2,163,025
2,238,770
Total Assets
$ 13,292,014
$ 13,393,119
Liabilities and Shareholders' Investment
Accounts Payable & Accrued Expenses
$ 771,154
$ 787,350
Accrued Marketing Expenses
133,313
113,947
Employee-related Expenses
250,072
273,402
Interest and Dividends Payable
175,646
180,700
Taxes Payable
10,690
18,752
Current Maturities of Long-term Debt
505,634
6,646
Liabilities Held for Sale
27,483
—
Total Current Liabilities
1,873,991
1,380,796
Long-term Debt Less Current Maturities
2,349,489
2,850,778
Pension and Postretirement Benefits
351,174
358,984
Deferred Income Taxes
653,360
661,349
Other Long-term Liabilities
204,345
225,397
Accumulated Other Comprehensive Loss
(236,907)
(243,646)
Other Shareholders' Investment
8,096,561
8,159,461
Total Liabilities and Shareholders' Investment
$ 13,292,014
$ 13,393,119
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
Quarter Ended
Nine Months Ended
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Operating Activities
Net Earnings
$ 59,519
$ 183,696
$ 398,666
$ 533,968
Depreciation and Amortization
66,427
64,692
202,348
194,527
Equity in Earnings of Affiliates
37,110
(11,153)
4,061
(42,614)
Loss (Gain) on Divestitures
57,379
—
94,085
10,800
Decrease (Increase) in Working Capital, Net of Divestitures
(2,174)
(95,844)
111
(255,011)
Other
22,339
15,307
69,481
80,674
Net Cash Provided by (Used in)
Operating Activities
240,599
156,698
768,752
522,345
Investing Activities
Net Sale (Purchase) of Securities
3,498
(1,434)
3,372
(6,170)
Proceeds from Sale of Business
(2,979)
—
97,056
13,139
Purchases of Property, Plant, and
Equipment
(68,163)
(72,194)
(219,331)
(219,444)
Proceeds from (Purchases of) Affiliates
and Other Investments
—
(584)
(5,316)
(3,283)
Other
6,119
7,890
11,952
10,767
Net Cash Provided by (Used in)
Investing Activities
(61,526)
(66,323)
(112,267)
(204,991)
Financing Activities
Repayments of Long-term Debt and
Finance Leases
(1,773)
(2,005)
(5,425)
(6,250)
Dividends Paid on Common Stock
(160,963)
(159,467)
(481,401)
(473,692)
Other
(283)
(1,784)
(1,609)
24,057
Net Cash Provided by (Used in)
Financing Activities
(163,019)
(163,256)
(488,435)
(455,884)
Effect of Exchange Rate Changes on
Cash
1,291
2,381
5,368
(4,161)
Increase (Decrease) in Cash, Cash
Equivalents, and Cash Held for Sale
17,345
(70,499)
173,417
(142,692)
Cash, Cash Equivalents, and Cash Held
for Sale at Beginning of Period
826,750
669,688
670,679
741,881
Cash, Cash Equivalents, and Cash Held
for Sale at End of Period
844,095
599,189
844,095
599,189
Less: Cash Held for Sale
4,457
—
4,457
—
Cash and Cash Equivalents at End of
Period
$ 839,639
$ 599,189
$ 839,639
$ 599,189
HORMEL FOODS CORPORATION
SEGMENT DATA
In thousands
Unaudited
Quarter Ended
Nine Months Ended
July 26,
2026
July 27,
2025
%
Change
July 26,
2026
July 27,
2025
%
Change
Volume (lbs.)
Retail
648,340
712,912
(9.1)
2,005,233
2,127,075
(5.7)
Foodservice
244,830
248,540
(1.5)
733,557
734,988
(0.2)
International
75,908
85,138
(10.8)
231,905
239,225
(3.1)
Total Volume (lbs.)
969,078
1,046,590
(7.4)
2,970,695
3,101,288
(4.2)
Net Sales
Retail
$ 1,779,434
$ 1,858,434
(4.3)
$ 5,416,905
$ 5,532,401
(2.1)
Foodservice
1,003,158
986,976
1.6
2,998,096
2,853,603
5.1
International
178,740
187,466
(4.7)
546,249
534,495
2.2
Total Net Sales
$ 2,961,333
$ 3,032,876
(2.4)
$ 8,961,250
$ 8,920,499
0.5
Segment Profit
Retail
$ 118,073
$ 122,566
(3.7)
$ 369,902
$ 378,847
(2.4)
Foodservice
144,475
140,711
2.7
456,800
420,170
8.7
International
(29,233)
18,941
(254.3)
15,812
58,193
(72.8)
Total Segment Profit
233,316
282,218
(17.3)
842,515
857,210
(1.7)
Net Unallocated Expense
130,104
45,658
185.0
298,802
171,769
74.0
Noncontrolling Interest
(55)
(46)
(20.4)
(182)
(366)
50.2
Earnings Before
Income Taxes
$ 103,157
$ 236,514
(56.4)
$ 543,531
$ 685,076
(20.7)
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 nonrecurring, 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 nonrecurring 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 Divestitures
As part of its ongoing portfolio management activities, the Company may periodically divest certain businesses to better align its portfolio with its strategic objectives and long-term growth strategy. The Company believes the one-time impacts from these transactions, including transaction costs, 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. Transactions affecting comparability include the Brazil transaction, the whole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain Prairie, LLC divestiture.
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 certain 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 a consulting agreement (Consulting 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 Consulting Agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes nonrecurring 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.
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 the third quarter of fiscal 2026, the Company executed a settlement agreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the Company entered into a settlement agreement with certain plaintiffs in an antitrust lawsuit.
Impairments
In the third quarter of fiscal 2026, the Company recorded a non-cash impairment charge related to a minority investment in Indonesia. The Company believes these charges 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. Thus, the Company has adjusted for (i.e., excluded) these impacts.
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
Nine Months Ended
In thousands, except per share amounts
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Cost of Products Sold (GAAP)
$ 2,489,818
$ 2,545,567
$ 7,501,653
$ 7,473,524
Transform and Modernize Initiative (1)
(447)
(1,010)
(2,222)
(3,973)
Adjusted Cost of Products Sold (Non-GAAP)
$ 2,489,371
$ 2,544,557
$ 7,499,431
$ 7,469,551
SG&A (GAAP)
$ 323,501
$ 258,713
$ 883,822
$ 773,158
Transform and Modernize Initiative (2)
(11,792)
(13,485)
(36,448)
(41,228)
Gain (Loss) on Divestitures
(57,379)
—
(94,911)
(11,324)
Corporate Restructuring Plan
26
—
(8,505)
—
Consulting Agreement
—
—
(7,775)
—
Litigation Settlements
(37,500)
—
(37,500)
(240)
Adjusted SG&A (Non-GAAP)
$ 216,856
$ 245,228
$ 698,684
$ 720,366
Equity in Earnings of Affiliates (GAAP)
$ (37,110)
$ 11,153
$ (4,061)
$ 42,614
Impairments
48,218
—
48,218
—
Adjusted Equity in Earnings of Affiliates (Non-
GAAP)
$ 11,109
$ 11,153
$ 44,157
$ 42,614
Operating Income (GAAP)
$ 110,904
$ 239,748
$ 571,713
$ 716,430
Transform and Modernize Initiative (1)(2)
12,239
14,496
38,669
45,202
(Gain) Loss on Divestitures
57,379
—
94,911
11,324
Corporate Restructuring Plan
(26)
—
8,505
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
37,500
—
37,500
240
Impairments
48,218
—
48,218
—
Adjusted Operating Income (Non-GAAP)
$ 266,215
$ 254,244
$ 807,292
$ 773,196
Earnings Before Income Taxes (GAAP)
$ 103,157
$ 236,514
$ 543,531
$ 685,076
Transform and Modernize Initiative (1)(2)
12,239
14,496
38,669
45,202
(Gain) Loss on Divestitures
57,379
—
94,911
11,324
Corporate Restructuring Plan
(26)
—
8,505
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
37,500
—
37,500
240
Impairments
48,218
—
48,218
—
Adjusted Earnings Before Income Taxes (Non-
GAAP)
$ 258,467
$ 251,010
$ 779,110
$ 741,842
Provision for Income Taxes (GAAP)
$ 43,638
$ 52,818
$ 144,865
$ 151,107
Transform and Modernize Initiative (1)(2)
2,999
3,233
9,474
9,960
(Gain) Loss on Divestitures
303
—
4,525
2,469
Corporate Restructuring Plan
(6)
—
2,084
—
Consulting Agreement
—
—
—
—
Litigation Settlements
9,188
—
9,188
52
Impairments
—
—
—
—
Adjusted Provision for Income Taxes (Non-GAAP)
$ 56,120
$ 56,051
$ 170,136
$ 163,588
Net Earnings Attributable to Hormel Foods
Corporation (GAAP)
$ 59,573
$ 183,742
$ 398,848
$ 534,334
Transform and Modernize Initiative (1)(2)
9,241
11,263
29,195
35,242
(Gain) Loss on Divestitures
57,076
—
90,386
8,855
Corporate Restructuring Plan
(20)
—
6,421
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
28,313
—
28,313
188
Impairments
48,218
—
48,218
—
Adjusted Net Earnings Attributable to Hormel
Foods Corporation (Non-GAAP)
$ 202,402
$ 195,005
$ 609,156
$ 578,620
Diluted Earnings Per Share (GAAP)
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Transform and Modernize Initiative (1)(2)
0.02
0.02
0.05
0.06
(Gain) Loss on Divestitures
0.10
—
0.16
0.02
Corporate Restructuring Plan
—
—
0.01
—
Consulting Agreement
—
—
0.01
—
Litigation Settlements
0.05
—
0.05
—
Impairments
0.09
—
0.09
—
Adjusted Diluted Earnings Per Share (Non-GAAP)
$ 0.37
$ 0.35
$ 1.11
$ 1.05
SG&A as a Percent of Net Sales (GAAP)
10.9 %
8.5 %
9.9 %
8.7 %
Transform and Modernize Initiative (2)
(0.4)
(0.4)
(0.4)
(0.5)
Gain (Loss) on Divestitures
(1.9)
—
(1.1)
(0.1)
Corporate Restructuring Plan
—
—
(0.1)
—
Consulting Agreement
—
—
(0.1)
—
Litigation Settlements
(1.3)
—
(0.4)
—
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)
7.3 %
8.1 %
7.8 %
8.1 %
Operating Margin (GAAP)
3.7 %
7.9 %
6.4 %
8.0 %
Transform and Modernize Initiative (1)(2)
0.4
0.5
0.4
0.5
(Gain) Loss on Divestitures
1.9
—
1.1
0.1
Corporate Restructuring Plan
—
—
0.1
—
Consulting Agreement
—
—
0.1
—
Litigation Settlements
1.3
—
0.4
—
Impairments
1.6
—
0.5
—
Adjusted Operating Margin (Non-GAAP)
9.0 %
8.4 %
9.0 %
8.7 %
(1) Comprised primarily of costs related to supply chain and portfolio optimization.
(2) Comprised primarily of project-based external consulting fees.
ADJUSTED SEGMENT PROFIT (NON-GAAP)
Quarter Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
Non-GAAP Adjustments (1)
Non-GAAP
GAAP
Non-GAAP Adjustments (2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 118,073
$ —
$ 118,073
$ 122,566
$ —
$ 122,566
Foodservice
144,475
—
144,475
140,711
—
140,711
International
(29,233)
48,218
18,985
18,941
—
18,941
Total Segment Profit (Loss)
233,316
48,218
281,534
282,218
—
282,218
Net Unallocated Expense
130,104
(107,092)
23,012
45,658
(14,496)
31,162
Noncontrolling Interest
(55)
—
(55)
(46)
—
(46)
Earnings Before Income Taxes
$ 103,157
$ 155,310
$ 258,467
$ 236,514
$ 14,496
$ 251,010
(1)
International segment profit (loss) adjustments in the third quarter of fiscal 2026 were due to a non-cash impairment charge.
Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, an unfavorable litigation settlement,
nonrecurring T&M initiative costs, and corporate restructuring plan charges.
(2)
Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were comprised of nonrecurring T&M initiative costs.
Nine Months Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
Non-GAAP Adjustments (1)
Non-GAAP
GAAP
Non-GAAP Adjustments (2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 369,902
$ —
$ 369,902
$ 378,847
$ —
$ 378,847
Foodservice
456,800
—
456,800
420,170
—
420,170
International
15,812
48,218
64,031
58,193
—
58,193
Total Segment Profit (Loss)
842,515
48,218
890,734
857,210
—
857,210
Net Unallocated Expense
298,802
(187,360)
111,442
171,769
(56,766)
115,003
Noncontrolling Interest
(182)
—
(182)
(366)
—
(366)
Earnings Before Income
Taxes
$ 543,531
$ 235,578
$ 779,110
$ 685,076
$ 56,766
$ 741,842
(1)
International segment profit (loss) adjustments in the first nine months of fiscal 2026 were due to a non-cash impairment
charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, nonrecurring T&M initiative costs,
an unfavorable litigation settlement, corporate restructuring plan charges, and Consulting Agreement costs.
(2)
Net Unallocated Expense adjustments in the first nine months of fiscal 2025 were comprised of nonrecurring T&M initiative
costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable litigation settlement.
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
July 26, 2026
July 27, 2025
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
648,340
712,912
(3,540)
709,372
(8.6)
Foodservice
244,830
248,540
(346)
248,194
(1.4)
International
75,908
85,138
(68)
85,071
(10.8)
Total Volume (lbs.)
969,078
1,046,590
(3,953)
1,042,637
(7.1)
Net Sales
Retail
$ 1,779,434
$ 1,858,434
$ (19,052)
$ 1,839,382
(3.3)
Foodservice
1,003,158
986,976
(1,856)
985,120
1.8
International
178,740
187,466
(520)
186,947
(4.4)
Total Net Sales
$ 2,961,333
$ 3,032,876
$ (21,427)
$ 3,011,449
(1.7)
Nine Months Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
2,005,233
2,127,075
(8,605)
2,118,469
(5.3)
Foodservice
733,557
734,988
(724)
734,264
(0.1)
International
231,905
239,225
(117)
239,109
(3.0)
Total Volume (lbs.)
2,970,695
3,101,288
(9,446)
3,091,842
(3.9)
Net Sales
Retail
$ 5,416,905
$ 5,532,401
$ (45,526)
$ 5,486,876
(1.3)
Foodservice
2,998,096
2,853,603
(4,100)
2,849,503
5.2
International
546,249
534,495
(1,190)
533,305
2.4
Total Net Sales
$ 8,961,250
$ 8,920,499
$ (50,815)
$ 8,869,684
1.0
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 and the sale of its Brazil operations in the fourth quarter of fiscal 2026.
In billions
Fiscal 2026 Outlook
2025 Results
Change
Net Sales (GAAP)
$ 12.1
-
$ 12.2
$ 12.1
0 %
-
1 %
Divestitures
—
-
—
(0.1)
Organic Net Sales (Non-GAAP)
$ 12.1
-
$ 12.2
$ 12.0
1 %
-
2 %
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 $1,075 million to $1,115 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 $1.45 to $1.51.
SOURCE Hormel Foods Corporation