Hormel Foods (NYSE: HRL) delivers Q2 2026 growth, updates EPS guidance after turkey divestiture
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Hormel Foods reported second-quarter fiscal 2026 results showing modest top-line growth and stronger performance on an adjusted basis. Net sales were $2.97 billion, with organic net sales up 3.3%. GAAP diluted EPS was $0.29, while adjusted diluted EPS rose to $0.40.
Adjusted operating income increased to $293.7 million, and adjusted operating margin improved to 9.9%. All three segments posted organic net sales and profit growth, led by Foodservice and International. Cash flow from operations was $179 million, and the company returned $161 million to shareholders through dividends.
Hormel completed the sale of its whole-bird turkey business, recording a $61 million loss, and expects about a $50 million reduction in fiscal 2026 net sales with minimal impact on adjusted EPS. For full-year 2026, it reaffirmed net sales of $12.2–$12.5 billion and adjusted EPS of $1.43–$1.51, but lowered GAAP EPS guidance to $1.28–$1.37 to reflect portfolio actions and special items.
Positive
- None.
Negative
- None.
Insights
Solid underlying growth with cleaner portfolio, but GAAP EPS trimmed.
Hormel Foods delivered Q2 net sales of $2.97 billion and organic net sales growth of 3.3%, while adjusted EPS rose to $0.40. Segment results were broadly positive, with Foodservice and International driving much of the momentum.
GAAP metrics are pressured by portfolio shaping: a $61 million loss on the sale of the whole-bird turkey business and ongoing Transform and Modernize and restructuring costs. These are carved out in non-GAAP figures, which show margin expansion and improved profitability.
Guidance keeps organic growth and adjusted earnings targets intact but reduces GAAP EPS to $1.28–$1.37. This reflects transaction-related charges rather than weaker operations. Subsequent filings may further detail progress on the Transform and Modernize initiative and the earnings impact of divestitures through fiscal 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 net sales: $2.97 billion
Organic net sales growth: 3.3%
Q2 diluted EPS (GAAP): $0.29
+5 more
8 metrics
Q2 net sales
$2.97 billion
Quarter ended April 26, 2026
Organic net sales growth
3.3%
Q2 fiscal 2026 vs prior-year quarter
Q2 diluted EPS (GAAP)
$0.29
Quarter ended April 26, 2026
Q2 adjusted diluted EPS
$0.40
Non-GAAP, quarter ended April 26, 2026
Loss on turkey business sale
$61 million
Q2 fiscal 2026, including transaction costs
Fiscal 2026 net sales guidance
$12.2–$12.5 billion
Full-year fiscal 2026 outlook
Fiscal 2026 GAAP EPS guidance
$1.28–$1.37
Updated full-year diluted EPS range
Fiscal 2026 adjusted EPS guidance
$1.43–$1.51
Non-GAAP full-year diluted EPS range
Key Terms
adjusted operating income, organic net sales, Transform and Modernize Initiative, Corporate Restructuring Plan, +1 more
5 terms
adjusted operating income financial
"Operating income of $217 million; adjusted operating income1 of $294 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.
organic net sales financial
"Net sales of $2.97 billion; organic net sales1 up 3%"
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.
Transform and Modernize Initiative financial
"Transform and Modernize Initiative (1) comprised primarily of asset write-offs and severance"
Corporate Restructuring Plan financial
"Corporate Restructuring Plan | 55 | — | 8,531 | —"
non-GAAP financial
"RECONCILIATION OF NON-GAAP MEASURES | Unaudited | Quarter Ended"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Earnings Snapshot
Net sales: $2.97 billion · Guidance included
Q2 fiscal 2026
Net sales
$2.97 billion
organic net sales up 3.3% vs prior year
Diluted EPS (GAAP)
$0.29
down from $0.33 prior year
Adjusted diluted EPS
$0.40
up from $0.35 prior year
Operating margin (GAAP)
7.3%
down from 8.6% prior year
Adjusted operating margin
9.9%
up from 9.1% prior year
Guidance
For fiscal 2026, Hormel expects net sales of $12.2–$12.5 billion, GAAP EPS of $1.28–$1.37, and adjusted EPS of $1.43–$1.51 with organic net sales growth of 1%–4%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 28, 2026
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) | |||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(507 ) 437-5611
Registrant’s telephone number, including area code
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | |||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – FINANCIAL INFORMATION
Item 2.02 Results of Operations and Financial Condition
On May 28, 2026, Hormel Foods Corporation (the Company) issued an earnings release announcing its financial results for the second quarter ended April 26, 2026. A copy of the earnings release is furnished as Exhibit 99 to this Form 8-K and is incorporated herein by reference.
Section 9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99 | Earnings Release issued May 28, 2026 | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| HORMEL FOODS CORPORATION | ||||||||
| (Registrant) | ||||||||
Dated: May 28, 2026 | By | /s/ PAUL R. KUEHNEMAN | ||||||
| PAUL R. KUEHNEMAN | ||||||||
| Interim Chief Financial Officer and Controller | ||||||||
3
HORMEL FOODS REPORTS STRONG SECOND QUARTER FISCAL 2026 RESULTS
Company Delivers Sixth Consecutive Quarter of Organic Top-Line Growth, GAAP EPS of $0.29 and Double-Digit Growth in Adjusted EPS1
AUSTIN, Minn. (May 28, 2026) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the second quarter of fiscal 2026, which ended April 26, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.
EXECUTIVE SUMMARY — SECOND QUARTER
•Net sales of $2.97 billion; organic net sales1 up 3%
•Operating income of $217 million; adjusted operating income1 of $294 million
•Operating margin of 7.3%; adjusted operating margin1 of 9.9%
•Earnings before income taxes of $206 million; adjusted earnings before income taxes1 of $283 million
•Diluted earnings per share of $0.29; adjusted diluted earnings per share1 of $0.40
•Cash flow from operations of $179 million
EXECUTIVE COMMENTARY
“We delivered strong second quarter results marked by profitable growth and improved performance,” said Jeff Ettinger, interim chief executive officer. “We achieved our sixth consecutive quarter of organic top-line growth, expanded gross margins, and attained double-digit growth in adjusted earnings.1 This was an excellent quarter and gives us even greater confidence in our ability to deliver our full-year outlook.”
“Our teams are executing at a high level across the organization, driving impressive performance from our protein-centric portfolio,” said John Ghingo, president. “Each segment delivered both net sales and segment profit growth in the second quarter, reflecting broad-based strength across the business and the impact of our strategy. We are encouraged by our results and confident in how the business is performing.”
FULL YEAR FISCAL 2026 GUIDANCE
For fiscal 2026, the Company:
•Reaffirms net sales in the range of $12.2 billion to $12.5 billion and organic net sales1 growth of 1% to 4%
•Updates operating income guidance to be in the range of $0.96 billion to $1.02 billion, which includes the loss on the sale of the whole-bird turkey business
•Reaffirms adjusted operating income1 to be in the range of $1.06 billion to $1.12 billion, reflecting growth of 4% to 10%
•Updates diluted earnings per share guidance to be in the range of $1.28 to $1.37
•Reaffirms adjusted diluted earnings per share1 to be in the range of $1.43 to $1.51, reflecting growth of 4% to 10%
Updated | Previous | |||||||
| Net Sales | $12.2 - $12.5 billion | $12.2 - $12.5 billion | ||||||
Organic Net Sales1 Growth Rate | 1% - 4% | 1% - 4% | ||||||
| Diluted Earnings per Share | $1.28 - $1.37 | $1.37 - $1.46 | ||||||
Adj. Diluted Earnings per Share1 | $1.43 - $1.51 | $1.43 - $1.51 | ||||||
1
PORTFOLIO SHAPING
During the second quarter of fiscal 2026, the Company completed the previously announced sale of its whole-bird turkey business. This divestiture underscores the Company’s ongoing strategic shift toward expanding its value-added protein portfolio and reducing exposure to more volatile, commodity-driven businesses.
The expected impacts of the transaction are reflected in the Company’s updated fiscal 2026 guidance ranges. The Company continues to expect the transaction to result in an approximate $50 million reduction in fiscal 2026 reported net sales and minimal impact to adjusted diluted earnings per share.¹ Beginning in fiscal 2027, the impact of the divestiture will be excluded from year-over-year comparisons in the Company’s non-GAAP organic volume and organic net sales metrics.
SEGMENT HIGHLIGHTS – SECOND QUARTER
Retail
•Volume down 2%; organic volume1 down 2%
•Net sales flat; organic net sales1 up 1%
•Segment profit up 13%
Organic net sales1 grew in the second quarter of fiscal 2026, as strong performance in Jennie-O® ground turkey was partially offset by the strategic exit from select non-core private label snack nut items. Other priority brands such as Applegate® natural and organic meats, Hormel® Black Label® bacon, the Herdez® portfolio, and Hormel Gatherings® party trays contributed to organic net sales1 growth in the quarter. Segment profit increased as higher organic net sales,1 improved performance across the turkey manufacturing network, and lower selling, general and administrative expenses were partially offset by inflationary pressures in the logistics network.
Foodservice
•Volume up 1%; organic volume1 up 1%
•Net sales up 6%; organic net sales1 up 7%
•Segment profit up 11%
Second quarter organic net sales1 for the Foodservice segment was up 7%, marking the 11th consecutive quarter of organic net sales1 growth for the segment. Organic volume1 also increased. Net sales growth was driven by strong performance across multiple product groups and categories, led by significant contributions from the customized solutions business, branded pepperoni, and premium prepared proteins. Branded products such as Hormel® Natural Choice® meats, Austin Blues® smoked meats, Jennie-O® turkey and Fontanini® Italian meats also delivered strong net sales results. Segment profit increased for the second quarter of fiscal 2026, primarily driven by net sales performance, which benefited from market-based pricing actions and modest volume growth, despite a challenging operating environment. Segment profit also benefited from improved performance across the turkey manufacturing network.
International
•Volume up 1%; organic volume1 up 1%
•Net sales up 4%; organic net sales1 up 5%
•Segment profit up 20%
For the International segment, organic volume1 and organic net sales1 grew in the second quarter of fiscal 2026. Organic net sales1 growth was driven by strong results from SPAM® luncheon meat exports and our in-country China business. International segment profit increased in the second quarter of fiscal 2026, primarily due to strong export performance and growth in China.
2
ADDITIONAL FINANCIAL DETAILS – SECOND QUARTER FISCAL 2026
Income Statement
•Operating margin and adjusted operating margin1 were 7.3% and 9.9%, respectively, compared to 8.6% and 9.1%, 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 10.7% and 8.2%, respectively, compared to 8.7% and 8.2%, respectively, in the prior year.
•The loss on the sale of the whole-bird turkey business, including transaction costs, was $61 million.
•Advertising investments were $34 million, compared to $36 million last year.
•The effective tax rate was 23.6%, compared to 22.0% last year.
Cash Flow Statement
•Cash flow from operations was $179 million.
•Capital expenditures were $82 million, compared to $75 million last year. The largest projects in the second quarter of fiscal 2026 were related to investments in data and technology, and infrastructure enhancements.
•Depreciation and amortization expense was $69 million, compared to $64 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 was $827 million at quarter end, an increase of $156 million from the end of fiscal 2025.
•Inventories at quarter end were $1.8 billion, comparable to the end of fiscal 2025.
PRESENTATION
A conference call will be webcast at 8 a.m. CT on May 28, 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 46321. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, May 28, 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
3
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.
Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.
END NOTES
1Non-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
4
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | April 26, 2026 | April 27, 2025 | |||||||||||||||||||||||
| Net Sales | $ | 2,972,600 | $ | 2,898,810 | $ | 5,999,917 | $ | 5,887,623 | ||||||||||||||||||
| Cost of Products Sold | 2,454,093 | 2,414,377 | 5,011,835 | 4,927,957 | ||||||||||||||||||||||
| Gross Profit | 518,507 | 484,433 | 988,082 | 959,666 | ||||||||||||||||||||||
| Selling, General, and Administrative | 318,624 | 251,432 | 560,322 | 514,445 | ||||||||||||||||||||||
| Equity in Earnings of Affiliates | 17,229 | 15,350 | 33,049 | 31,461 | ||||||||||||||||||||||
| Operating Income | 217,112 | 248,352 | 460,809 | 476,682 | ||||||||||||||||||||||
| Interest Income | 6,479 | 6,176 | 13,007 | 13,719 | ||||||||||||||||||||||
| Interest Expense | 19,822 | 19,516 | 39,550 | 38,977 | ||||||||||||||||||||||
| Other Income (Expense), Net | 2,294 | (4,523) | 6,109 | (2,862) | ||||||||||||||||||||||
| Earnings Before Income Taxes | 206,063 | 230,489 | 440,375 | 448,561 | ||||||||||||||||||||||
| Provision for Income Taxes | 48,685 | 50,747 | 101,227 | 98,289 | ||||||||||||||||||||||
| Effective Tax Rate | 23.6 | % | 22.0 | % | 23.0 | % | 21.9 | % | ||||||||||||||||||
| Net Earnings | 157,378 | 179,742 | 339,147 | 350,272 | ||||||||||||||||||||||
| Less: Net Earnings (Loss) Attributable to Noncontrolling Interest | (96) | (275) | (127) | (320) | ||||||||||||||||||||||
| Net Earnings Attributable to Hormel Foods Corporation | $ | 157,474 | $ | 180,017 | $ | 339,274 | $ | 350,592 | ||||||||||||||||||
| Net Earnings Per Share: | ||||||||||||||||||||||||||
| Basic | $ | 0.29 | $ | 0.33 | $ | 0.62 | $ | 0.64 | ||||||||||||||||||
| Diluted | $ | 0.29 | $ | 0.33 | $ | 0.62 | $ | 0.64 | ||||||||||||||||||
| Weighted-average Shares Outstanding: | ||||||||||||||||||||||||||
| Basic | 550,562 | 550,277 | 550,520 | 549,868 | ||||||||||||||||||||||
| Diluted | 550,915 | 550,611 | 550,810 | 550,233 | ||||||||||||||||||||||
| Dividends Declared Per Share | $ | 0.2925 | $ | 0.2900 | $ | 0.5850 | $ | 0.5800 | ||||||||||||||||||
5
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands
Unaudited
| April 26, 2026 | October 26, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Cash and Cash Equivalents | $ | 826,750 | $ | 670,679 | ||||||||||
| Short-term Marketable Securities | 33,107 | 32,909 | ||||||||||||
| Accounts and Other Receivables, Net | 760,073 | 813,989 | ||||||||||||
| Inventories | 1,750,914 | 1,747,279 | ||||||||||||
| Taxes Receivable | 58,760 | 96,791 | ||||||||||||
| Prepaid Expenses and Other Current Assets | 64,006 | 44,010 | ||||||||||||
| Total Current Assets | 3,493,610 | 3,405,656 | ||||||||||||
| Goodwill | 4,871,935 | 4,924,087 | ||||||||||||
| Intangible Assets | 1,585,631 | 1,647,297 | ||||||||||||
| Pension Assets | 206,699 | 211,826 | ||||||||||||
| Investments in Affiliates | 568,549 | 533,984 | ||||||||||||
| Other Assets | 451,769 | 431,500 | ||||||||||||
| Property, Plant, and Equipment, Net | 2,166,093 | 2,238,770 | ||||||||||||
| Total Assets | $ | 13,344,286 | $ | 13,393,119 | ||||||||||
| Liabilities and Shareholders’ Investment | ||||||||||||||
Accounts Payable & Accrued Expenses | $ | 748,107 | $ | 787,350 | ||||||||||
| Accrued Marketing Expenses | 122,512 | 113,947 | ||||||||||||
| Employee-related Expenses | 241,533 | 273,402 | ||||||||||||
| Interest and Dividends Payable | 182,246 | 180,700 | ||||||||||||
| Taxes Payable | 3,059 | 18,752 | ||||||||||||
| Current Maturities of Long-term Debt | 505,335 | 6,646 | ||||||||||||
| Total Current Liabilities | 1,802,791 | 1,380,796 | ||||||||||||
| Long-term Debt Less Current Maturities | 2,351,004 | 2,850,778 | ||||||||||||
| Pension and Postretirement Benefits | 353,569 | 358,984 | ||||||||||||
| Deferred Income Taxes | 657,431 | 661,349 | ||||||||||||
| Other Long-term Liabilities | 215,615 | 225,397 | ||||||||||||
| Accumulated Other Comprehensive Loss | (227,991) | (243,646) | ||||||||||||
Other Shareholders’ Investment | 8,191,867 | 8,159,461 | ||||||||||||
| Total Liabilities and Shareholders’ Investment | $ | 13,344,286 | $ | 13,393,119 | ||||||||||
6
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | April 26, 2026 | April 27, 2025 | |||||||||||||||||||||||
| Operating Activities | ||||||||||||||||||||||||||
| Net Earnings | $ | 157,378 | $ | 179,742 | $ | 339,147 | $ | 350,272 | ||||||||||||||||||
| Depreciation and Amortization | 68,826 | 63,963 | 135,921 | 129,835 | ||||||||||||||||||||||
| Decrease (Increase) in Working Capital, Net of Divestitures | (108,234) | (203,831) | 2,285 | (159,167) | ||||||||||||||||||||||
| Loss (Gain) on Sale of Business | 60,214 | — | 36,706 | 10,800 | ||||||||||||||||||||||
| Other | 755 | 16,567 | 14,093 | 33,906 | ||||||||||||||||||||||
| Net Cash Provided by (Used in) Operating Activities | 178,939 | 56,441 | 528,153 | 365,646 | ||||||||||||||||||||||
| Investing Activities | ||||||||||||||||||||||||||
| Net Sale (Purchase) of Securities | 197 | (3,349) | (126) | (4,735) | ||||||||||||||||||||||
| Proceeds from Sale of Business | 21,182 | (504) | 100,035 | 13,139 | ||||||||||||||||||||||
| Purchases of Property, Plant, and Equipment | (82,174) | (75,083) | (151,167) | (147,250) | ||||||||||||||||||||||
| Proceeds from (Purchases of) Affiliates and Other Investments | (3,724) | (1,305) | (5,316) | (2,699) | ||||||||||||||||||||||
| Other | 5,828 | 1,905 | 5,833 | 2,877 | ||||||||||||||||||||||
| Net Cash Provided by (Used in) Investing Activities | (58,690) | (78,336) | (50,742) | (138,668) | ||||||||||||||||||||||
| Financing Activities | ||||||||||||||||||||||||||
| Repayments of Long-term Debt and Finance Leases | (1,827) | (2,043) | (3,652) | (4,245) | ||||||||||||||||||||||
| Dividends Paid on Common Stock | (160,936) | (159,244) | (320,437) | (314,225) | ||||||||||||||||||||||
| Other | (220) | 11,721 | (1,326) | 25,841 | ||||||||||||||||||||||
| Net Cash Provided by (Used in) Financing Activities | (162,983) | (149,566) | (325,416) | (292,629) | ||||||||||||||||||||||
| Effect of Exchange Rate Changes on Cash | 1,578 | 752 | 4,076 | (6,542) | ||||||||||||||||||||||
| Increase (Decrease) in Cash and Cash Equivalents | (41,156) | (170,710) | 156,072 | (72,193) | ||||||||||||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 867,906 | 840,398 | 670,679 | 741,881 | ||||||||||||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 826,750 | $ | 669,688 | $ | 826,750 | $ | 669,688 | ||||||||||||||||||
7
HORMEL FOODS CORPORATION
SEGMENT DATA
In thousands
Unaudited
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | % Change | April 26, 2026 | April 27, 2025 | % Change | |||||||||||||||||||||||||||||||||
| Volume (lbs.) | ||||||||||||||||||||||||||||||||||||||
| Retail | 663,009 | 677,277 | (2.1) | 1,356,893 | 1,414,162 | (4.0) | ||||||||||||||||||||||||||||||||
| Foodservice | 244,307 | 242,595 | 0.7 | 488,726 | 486,449 | 0.5 | ||||||||||||||||||||||||||||||||
| International | 80,536 | 79,518 | 1.3 | 155,997 | 154,087 | 1.2 | ||||||||||||||||||||||||||||||||
Total Volume (lbs.) | 987,852 | 999,390 | (1.2) | 2,001,616 | 2,054,698 | (2.6) | ||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Retail | $ | 1,789,665 | $ | 1,783,835 | 0.3 | $ | 3,637,471 | $ | 3,673,968 | (1.0) | ||||||||||||||||||||||||||||
| Foodservice | 996,711 | 936,442 | 6.4 | 1,994,937 | 1,866,627 | 6.9 | ||||||||||||||||||||||||||||||||
| International | 186,225 | 178,533 | 4.3 | 367,509 | 347,028 | 5.9 | ||||||||||||||||||||||||||||||||
Total Net Sales | $ | 2,972,600 | $ | 2,898,810 | 2.5 | $ | 5,999,917 | $ | 5,887,623 | 1.9 | ||||||||||||||||||||||||||||
| Segment Profit | ||||||||||||||||||||||||||||||||||||||
| Retail | $ | 155,640 | $ | 137,135 | 13.5 | $ | 251,829 | $ | 256,281 | (1.7) | ||||||||||||||||||||||||||||
| Foodservice | 155,784 | 140,633 | 10.8 | 312,325 | 279,459 | 11.8 | ||||||||||||||||||||||||||||||||
| International | 22,135 | 18,407 | 20.3 | 45,046 | 39,252 | 14.8 | ||||||||||||||||||||||||||||||||
| Total Segment Profit | 333,559 | 296,175 | 12.6 | 609,200 | 574,992 | 5.9 | ||||||||||||||||||||||||||||||||
| Net Unallocated Expense | 127,400 | 65,411 | 94.8 | 168,698 | 126,111 | 33.8 | ||||||||||||||||||||||||||||||||
| Noncontrolling Interest | (96) | (275) | 65.2 | (127) | (320) | 60.3 | ||||||||||||||||||||||||||||||||
| Earnings Before Income Taxes | $ | 206,063 | $ | 230,489 | (10.6) | $ | 440,375 | $ | 448,561 | (1.8) | ||||||||||||||||||||||||||||
8
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 second quarter of fiscal 2026, the Company completed the sale of its whole-bird turkey business, resulting in a loss on the sale. 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 certain plaintiffs in an antitrust lawsuit.
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
9
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 | Six Months Ended | ||||||||||||||||||||||
| In thousands, except per share amounts | April 26, 2026 | April 27, 2025 | April 26, 2026 | April 27, 2025 | |||||||||||||||||||
| Cost of Products Sold (GAAP) | $ | 2,454,093 | $ | 2,414,377 | $ | 5,011,835 | $ | 4,927,957 | |||||||||||||||
Transform and Modernize Initiative(1) | (1,393) | (2,777) | (1,774) | (2,963) | |||||||||||||||||||
| Adjusted Cost of Products Sold (Non-GAAP) | $ | 2,452,701 | $ | 2,411,600 | $ | 5,010,061 | $ | 4,924,994 | |||||||||||||||
| SG&A (GAAP) | $ | 318,624 | $ | 251,432 | $ | 560,322 | $ | 514,445 | |||||||||||||||
Transform and Modernize Initiative(2) | (14,113) | (13,775) | (24,656) | (27,743) | |||||||||||||||||||
| Gain (Loss) on Sale of Business | (61,040) | — | (37,532) | (11,324) | |||||||||||||||||||
| Corporate Restructuring Plan | (55) | — | (8,531) | — | |||||||||||||||||||
| Consulting Agreement | — | — | (7,775) | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | (240) | |||||||||||||||||||
| Adjusted SG&A (Non-GAAP) | $ | 243,416 | $ | 237,657 | $ | 481,828 | $ | 475,138 | |||||||||||||||
| Operating Income (GAAP) | $ | 217,112 | $ | 248,352 | $ | 460,809 | $ | 476,682 | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 15,506 | 16,552 | 26,430 | 30,706 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 61,040 | — | 37,532 | 11,324 | |||||||||||||||||||
| Corporate Restructuring Plan | 55 | — | 8,531 | — | |||||||||||||||||||
| Consulting Agreement | — | — | 7,775 | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | 240 | |||||||||||||||||||
| Adjusted Operating Income (Non-GAAP) | $ | 293,713 | $ | 264,903 | $ | 541,077 | $ | 518,952 | |||||||||||||||
| Earnings Before Income Taxes (GAAP) | $ | 206,063 | $ | 230,489 | $ | 440,375 | $ | 448,561 | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 15,506 | 16,552 | 26,430 | 30,706 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 61,040 | — | 37,532 | 11,324 | |||||||||||||||||||
| Corporate Restructuring Plan | 55 | — | 8,531 | — | |||||||||||||||||||
| Consulting Agreement | — | — | 7,775 | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | 240 | |||||||||||||||||||
| Adjusted Earnings Before Income Taxes (Non-GAAP) | $ | 282,664 | $ | 247,040 | $ | 520,643 | $ | 490,831 | |||||||||||||||
10
| HORMEL FOODS CORPORATION | |||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| In thousands, except per share amounts | April 26, 2026 | April 27, 2025 | April 26, 2026 | April 27, 2025 | |||||||||||||||||||
| Provision for Income Taxes (GAAP) | $ | 48,685 | $ | 50,747 | $ | 101,227 | $ | 98,289 | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 3,799 | 3,641 | 6,475 | 6,727 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 9,982 | — | 4,223 | 2,469 | |||||||||||||||||||
| Corporate Restructuring Plan | 13 | — | 2,090 | — | |||||||||||||||||||
| Consulting Agreement | — | — | — | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | 52 | |||||||||||||||||||
| Adjusted Provision for Income Taxes (Non-GAAP) | $ | 62,480 | $ | 54,388 | $ | 114,016 | $ | 107,537 | |||||||||||||||
| Net Earnings Attributable to Hormel Foods Corporation (GAAP) | $ | 157,474 | $ | 180,017 | $ | 339,274 | $ | 350,592 | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 11,707 | 12,910 | 19,955 | 23,979 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 51,058 | — | 33,309 | 8,855 | |||||||||||||||||||
| Corporate Restructuring Plan | 41 | — | 6,441 | — | |||||||||||||||||||
| Consulting Agreement | — | — | 7,775 | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | 188 | |||||||||||||||||||
| Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP) | $ | 220,280 | $ | 192,928 | $ | 406,754 | $ | 383,615 | |||||||||||||||
| Diluted Earnings Per Share (GAAP) | $ | 0.29 | $ | 0.33 | $ | 0.62 | $ | 0.64 | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 0.02 | 0.02 | 0.04 | 0.04 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 0.09 | — | 0.06 | 0.02 | |||||||||||||||||||
| Corporate Restructuring Plan | — | — | 0.01 | — | |||||||||||||||||||
| Consulting Agreement | — | — | 0.01 | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | — | |||||||||||||||||||
| Adjusted Diluted Earnings Per Share (Non-GAAP) | $ | 0.40 | $ | 0.35 | $ | 0.74 | $ | 0.70 | |||||||||||||||
| SG&A as a Percent of Net Sales (GAAP) | 10.7 | % | 8.7 | % | 9.3 | % | 8.7 | % | |||||||||||||||
Transform and Modernize Initiative(2) | (0.5) | (0.5) | (0.4) | (0.5) | |||||||||||||||||||
| Gain (Loss) on Sale of Business | (2.1) | — | (0.6) | (0.2) | |||||||||||||||||||
| Corporate Restructuring Plan | — | — | (0.1) | — | |||||||||||||||||||
| Consulting Agreement | — | — | (0.1) | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | — | |||||||||||||||||||
| Adjusted SG&A as a Percent of Net Sales (Non-GAAP) | 8.2 | % | 8.2 | % | 8.0 | % | 8.1 | % | |||||||||||||||
11
| HORMEL FOODS CORPORATION | |||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | April 26, 2026 | April 27, 2025 | ||||||||||||||||||||
| Operating Margin (GAAP) | 7.3 | % | 8.6 | % | 7.7 | % | 8.1 | % | |||||||||||||||
Transform and Modernize Initiative(1)(2) | 0.5 | 0.6 | 0.4 | 0.5 | |||||||||||||||||||
| (Gain) Loss on Sale of Business | 2.1 | — | 0.6 | 0.2 | |||||||||||||||||||
| Corporate Restructuring Plan | — | — | 0.1 | — | |||||||||||||||||||
| Consulting Agreement | — | — | 0.1 | — | |||||||||||||||||||
| Litigation Settlements | — | — | — | — | |||||||||||||||||||
| Adjusted Operating Margin (Non-GAAP) | 9.9 | % | 9.1 | % | 9.0 | % | 8.8 | % | |||||||||||||||
(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 | |||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | ||||||||||||||||||||||
| In thousands | GAAP | GAAP | Divestiture | Non-GAAP Organic | Non-GAAP % Change | ||||||||||||||||||
| Volume (lbs.) | |||||||||||||||||||||||
| Retail | 663,009 | 677,277 | (3,652) | 673,625 | (1.6) | ||||||||||||||||||
| Foodservice | 244,307 | 242,595 | (302) | 242,293 | 0.8 | ||||||||||||||||||
| International | 80,536 | 79,518 | (36) | 79,482 | 1.3 | ||||||||||||||||||
| Total Volume (lbs.) | 987,852 | 999,390 | (3,990) | 995,400 | (0.8) | ||||||||||||||||||
| Net Sales | |||||||||||||||||||||||
| Retail | $ | 1,789,665 | $ | 1,783,835 | $ | (18,554) | $ | 1,765,281 | 1.4 | ||||||||||||||
| Foodservice | 996,711 | 936,442 | (1,738) | 934,704 | 6.6 | ||||||||||||||||||
| International | 186,225 | 178,533 | (561) | 177,972 | 4.6 | ||||||||||||||||||
| Total Net Sales | $ | 2,972,600 | $ | 2,898,810 | $ | (20,853) | $ | 2,877,957 | 3.3 | ||||||||||||||
12
| Six Months Ended | |||||||||||||||||||||||
| April 26, 2026 | April 27, 2025 | ||||||||||||||||||||||
| In thousands | GAAP | GAAP | Divestiture | Non-GAAP Organic | Non-GAAP % Change | ||||||||||||||||||
| Volume (lbs.) | |||||||||||||||||||||||
| Retail | 1,356,893 | 1,414,162 | (5,065) | 1,409,097 | (3.7) | ||||||||||||||||||
| Foodservice | 488,726 | 486,449 | (379) | 486,070 | 0.5 | ||||||||||||||||||
| International | 155,997 | 154,087 | (49) | 154,038 | 1.3 | ||||||||||||||||||
| Total Volume (lbs.) | 2,001,616 | 2,054,698 | (5,493) | 2,049,205 | (2.3) | ||||||||||||||||||
| Net Sales | |||||||||||||||||||||||
| Retail | $ | 3,637,471 | $ | 3,673,968 | $ | (26,474) | $ | 3,647,493 | (0.3) | ||||||||||||||
| Foodservice | 1,994,937 | 1,866,627 | (2,244) | 1,864,383 | 7.0 | ||||||||||||||||||
| International | 367,509 | 347,028 | (670) | 346,358 | 6.1 | ||||||||||||||||||
| Total Net Sales | $ | 5,999,917 | $ | 5,887,623 | $ | (29,389) | $ | 5,858,235 | 2.4 | ||||||||||||||
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:
•Operating income (GAAP) in the range of $956 million to $1,021 million
•Adjustments for the T&M initiative of $43.0 million to $49.0 million
•Adjustments for corporate restructuring plan-related charges of $8.5 million
•Adjustment for the Consulting Agreement of $7.8 million
•Adjustment for a gain related to the sale of the Justin's® branded business of $(23.5) million
•Adjustment for a loss related to the sale of the whole-bird turkey business of $61.0 million
Resulting in an adjusted operating income range (non-GAAP) of $1,059 million to $1,118 million.
13
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 $1.28 to $1.37
•Adjustments for the T&M initiative of $0.06 to $0.07
•Adjustments for corporate restructuring plan-related charges of $0.01
•Adjustment for the Consulting Agreement of $0.01
•Adjustment for a gain related to the sale of the Justin's® branded business of $(0.03)
•Adjustment for a loss related to the sale of the whole-bird turkey business of $0.09
Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.43 to $1.51.
14
FAQ
How did Hormel Foods (HRL) perform in Q2 fiscal 2026?
Hormel Foods reported Q2 fiscal 2026 net sales of $2.97 billion and GAAP diluted EPS of $0.29. Adjusted diluted EPS reached $0.40, supported by organic net sales growth of 3.3% and higher adjusted operating margin of 9.9% across its Retail, Foodservice and International segments.
What 2026 earnings guidance did Hormel Foods (HRL) provide?
For fiscal 2026, Hormel guided GAAP diluted EPS to $1.28–$1.37 and adjusted diluted EPS to $1.43–$1.51. The company reaffirmed its adjusted EPS outlook while lowering GAAP EPS to reflect portfolio actions and special items, including turkey business divestiture-related charges.
What are Hormel Foods’ 2026 revenue expectations?
Hormel reaffirmed fiscal 2026 net sales guidance of $12.2–$12.5 billion, with organic net sales growth of 1%–4%. These figures incorporate the impact of recent divestitures, including Justin’s and the whole-bird turkey business, when comparing against adjusted 2025 non-GAAP organic net sales.
How did Hormel Foods’ segments perform in Q2 2026?
All three segments showed organic growth in Q2 2026. Retail organic net sales rose 1%, Foodservice organic net sales increased 7%, and International organic net sales grew 5%. Segment profit increased 13% in Retail, 11% in Foodservice, and 20% in International, reflecting broad-based strength.
What impact did the turkey business sale have on Hormel Foods?
Hormel completed the sale of its whole-bird turkey business, recording a $61 million loss including transaction costs. For fiscal 2026, the company expects about a $50 million reduction in reported net sales and minimal impact on adjusted diluted EPS, with effects incorporated into updated guidance ranges.