HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS

Rhea-AI Summary

Hormel Foods (NYSE: HRL) reported third quarter fiscal 2026 net sales of $2.96 billion, down from $3.03 billion, with organic net sales down 2%. Operating income was $111 million and adjusted operating income $266 million, yielding operating and adjusted operating margins of 3.7% and 9.0%, respectively. Diluted EPS was $0.11, while adjusted diluted EPS was $0.37. Cash flow from operations rose 54% to $241 million.

For full-year 2026, Hormel Foods now expects net sales of $12.1–$12.2 billion, implying 1%–2% organic growth. Adjusted operating income guidance was raised to $1.08–$1.12 billion and adjusted EPS to $1.45–$1.51, both reflecting 6%–10% growth, while GAAP EPS guidance was reduced to $1.06–$1.12. The company closed the sale of its Brazil operations (Ceratti brand) early in the fourth quarter; the related loss, an impairment on a minority investment in Indonesia, and a litigation settlement together significantly affected GAAP results and the 42.3% effective tax rate.

Positive

• Cash flow from operations up 54% YoY to $241 million
• Raised adjusted EPS guidance to $1.45–$1.51, 6%–10% growth
• Raised adjusted operating income guidance to $1.08–$1.12 billion, 6%–10% growth
• Foodservice segment organic net sales up 2%; segment profit up 3%
• Cash on hand of $840 million, up $169 million from fiscal 2025 year-end

Negative

• Net sales down to $2.96 billion from $3.03 billion in Q3 2025
• GAAP diluted EPS down to $0.11 from $0.33 in Q3 2025
• Operating margin declined to 3.7% from 7.9% year over year
• Recorded $56 million Brazil divestiture loss and $48 million non-cash impairment
• Updated GAAP EPS guidance cut to $1.06–$1.12 from $1.28–$1.37
• Retail volume down 9% and International volume down 11% in Q3 2026

News Explained

The Brazil operations sale is closed and its effects are included in fiscal 2026 guidance; beginning in fiscal fourth quarter, Hormel Foods will exclude the divested business from year-over-year non-GAAP organic volume and organic net sales comparisons.

Market Context

HRL's active S-3ASR shelf provides a registered framework for future debt issuance without a stated ...

Analysis

HRL's active S-3ASR shelf provides a registered framework for future debt issuance without a stated capacity. That financing context accompanies the raised adjusted outlook, while recent Form 4 data showed net selling and retail weakness remained a risk.

Key Figures

Third-quarter net sales: $2.96 billion Organic net sales: down 2% Adjusted operating income: $266 million +5 more

8 metrics

Third-quarter net sales $2.96 billion Q3 fiscal 2026

Organic net sales down 2% Q3 fiscal 2026 year-over-year

Adjusted operating income $266 million Q3 fiscal 2026

Adjusted diluted EPS $0.37 Q3 fiscal 2026

GAAP diluted EPS $0.11 Q3 fiscal 2026, versus $0.33 prior year

Operating cash flow $241 million Q3 fiscal 2026, up 54% year-over-year

Adjusted operating income guidance $1.08 billion to $1.12 billion Full-year fiscal 2026, reflecting 6% to 10% growth

Adjusted diluted EPS guidance $1.45 to $1.51 Full-year fiscal 2026, reflecting 6% to 10% growth

Historical Context

5 past events · Latest: Aug 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 25	Brand partnership	Positive	-1.3%	OTG partnership launched SPAM Dog offerings at Minneapolis-Saint Paul International Airport.
Aug 24	CFO appointment	Neutral	-1.3%	Ash Bhumbla was appointed executive vice president and chief financial officer.
Aug 13	Product launch	Positive	+0.2%	Hormel Chili and Omaha Steaks introduced a co-branded beef chili product nationally.
Aug 11	Charitable initiative	Positive	-1.7%	Hormel Foods recognized ten young leaders addressing food insecurity and sustainability.
Aug 11	Seasonal product launch	Positive	-1.7%	Planters introduced seasonal snack products across Amazon and major retail chains.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive or neutral HRL announcements were followed by mostly negative 24-hour price reactions.

Key Terms

organic net sales, adjusted operating income, non-GAAP measure, non-cash impairment charge

4 terms

organic net sales financial

"organic net sales down 2%"

Organic net sales represent the revenue generated from a company's core business activities, excluding the effects of acquisitions, divestments, or currency changes. It shows how well the company is growing through its existing products and services, similar to tracking how a plant grows from its own roots rather than by adding new plants. Investors use this measure to assess the true growth and health of a company's ongoing operations.

adjusted operating income financial

"adjusted operating income1 of $266 million"

Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.

non-GAAP measure financial

"This press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP)."

A non-GAAP measure is a company-crafted financial metric that adjusts or excludes items from standard accounting numbers to highlight what management sees as the business’s core performance. Investors use these figures like a filtered photo to reveal trends or cash flow drivers that raw accounting totals might hide, but because companies decide which items to remove, these measures should be compared with standard statements to avoid being misled.

non-cash impairment charge financial

"a non-cash impairment charge related to a minority investment in Indonesia"

A non-cash impairment charge is an accounting write-down that lowers the recorded value of an asset on a company’s books when that asset is judged to be worth less than before. It reduces reported profit for the period without using any cash — like lowering the listed price of a used car in your records — and matters to investors because it can shrink earnings, change valuation metrics, and signal potential problems that might affect future cash flow or credit terms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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

• Net sales of $2.96 billion; organic net sales¹ down 2%
• Operating income of $111 million; adjusted operating income¹ of $266 million
• Operating margin of 3.7%; adjusted operating margin¹ of 9.0%
• Earnings before income taxes of $103 million; adjusted earnings before income taxes¹ of $258 million
• Diluted earnings per share of $0.11; adjusted diluted earnings per share¹ 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 sales¹ 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 income¹ 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 share¹ guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%

	Updated	Previous
Net Sales	$12.1 - $12.2 billion	$12.2 - $12.5 billion
Organic Net Sales1 Growth Rate	1% - 2%	1% - 4%
Diluted Earnings per Share	$1.06 - $1.12	$1.28 - $1.37
Adj. Diluted Earnings per Share1	$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

• Volume down 9%; organic volume¹ down 9%
• Net sales down 4%; organic net sales¹ down 3%
• Segment profit down 4%

Organic net sales¹ 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 volume¹ down 1%
• Net sales up 2%; organic net sales¹ up 2%
• Segment profit up 3%

The third quarter of fiscal 2026 marked the 12^th consecutive quarter of organic net sales¹ 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

• Volume down 11%; organic volume¹ down 11%
• Net sales down 5%; organic net sales¹ down 4%
• Segment profit down 254%; adjusted segment profit¹ flat

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 profit¹ 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 margin¹ 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 sales¹ 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.

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

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

INVESTOR CONTACT
Jess Blomberg
ir@hormel.com 

MEDIA CONTACT
Laura Cederberg
media@hormel.com 

 

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:

• Operating income (GAAP) in the range of $826 million to $869 million
• Adjustments for gains and losses on divestitures of $94.9 million
• Adjustments for the T&M initiative of $49.0 million to $52.0 million
• Adjustment for a non-cash impairment of $48.2 million
• Adjustment for a litigation settlement of $37.5 million
• Adjustments for corporate restructuring plan-related charges of $8.5 million
• Adjustment for the Consulting Agreement of $7.8 million

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:

• Diluted earnings per share (GAAP) in the range of $1.06 to $1.12
• Adjustments for gains and losses on divestitures of $0.16
• Adjustment for a non-cash impairment of $0.09
• Adjustments for the T&M initiative of $0.07
• Adjustment for a litigation settlement of $0.05
• Adjustments for corporate restructuring plan-related charges of $0.01
• Adjustment for the Consulting Agreement of $0.01

Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45 to $1.51.

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SOURCE Hormel Foods Corporation

FAQ

What were Hormel Foods (HRL) third quarter fiscal 2026 earnings and revenue?

Hormel Foods reported Q3 2026 net sales of $2.96 billion and diluted EPS of $0.11. According to Hormel Foods, adjusted operating income was $266 million and adjusted diluted EPS was $0.37, reflecting the impact of significant one-time charges on GAAP results.

How did Hormel Foods update its full-year 2026 guidance for HRL on August 27, 2026?

Hormel Foods now expects $12.1–$12.2 billion in net sales and GAAP EPS of $1.06–$1.12. According to Hormel Foods, adjusted operating income guidance was raised to $1.08–$1.12 billion and adjusted EPS to $1.45–$1.51, both implying 6%–10% growth.

Why did Hormel Foods’ GAAP earnings decline in Q3 2026 despite solid adjusted results?

GAAP earnings declined largely due to several discrete items recorded in the quarter. According to Hormel Foods, these included a $56 million loss on the Brazil divestiture, a $48 million non-cash impairment on a minority investment in Indonesia, and a $38 million litigation settlement.

What portfolio changes did Hormel Foods (HRL) announce regarding its Brazil operations?

Hormel Foods entered a definitive agreement to sell its Brazil operations, operated under the Ceratti brand, and classified them as held for sale. According to Hormel Foods, the transaction closed early in Q4 2026 and is reflected in updated 2026 guidance and organic net sales metrics going forward.

How did Hormel Foods’ Foodservice and Retail segments perform in Q3 fiscal 2026?

In Q3 2026, Foodservice net sales rose 2% and segment profit increased 3%. According to Hormel Foods, this marked the 12th consecutive quarter of organic net sales growth, while Retail net sales fell 4% and volume declined 9%, partly from commodity and portfolio impacts.

What was Hormel Foods’ cash flow from operations and balance sheet position in Q3 2026?

Cash flow from operations reached $241 million in Q3 2026, a 54% year-over-year increase. According to Hormel Foods, cash on hand was $840 million, inventories were $1.8 billion, and management described the company as having ample liquidity and conservative debt levels.

Did Hormel Foods change its net sales outlook for fiscal 2026 and what does it imply for HRL investors?

Hormel Foods narrowed net sales guidance to $12.1–$12.2 billion, down from $12.2–$12.5 billion. According to Hormel Foods, this still implies 1%–2% organic net sales growth and incorporates the expected effects of the Brazil divestiture and other third-quarter discrete items.