Hormel Foods (NYSE: HRL) grows Q1 sales and updates 2026 outlook

Rhea-AI Filing Summary

Hormel Foods reported first-quarter fiscal 2026 net sales of $3.03 billion, with organic net sales up 1.6%. Operating income was $244 million, and diluted EPS was $0.33, up from $0.31, while adjusted diluted EPS was $0.34 versus $0.35 a year earlier.

Performance was mixed by segment: Retail net sales fell 2% and segment profit declined 19%, while Foodservice net sales rose 7% and profit increased 13%. International net sales grew 8% with segment profit up 10%. Cash flow from operations reached $349 million, and the company returned about $160 million to shareholders through dividends.

For full-year 2026, Hormel reaffirmed net sales guidance of $12.2–$12.5 billion and adjusted EPS of $1.43–$1.51, implying 4–10% growth. GAAP EPS guidance was raised to $1.37–$1.46. The outlook incorporates the completed sale of the Justin’s® business and excludes the pending sale of the whole-bird turkey business, which is expected to reduce 2026 net sales by about $50 million with minimal impact on adjusted EPS.

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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)  February 26, 2026

HORMEL FOODS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware			1-2402						41-0319970
(State or Other Jurisdiction of Incorporation)			(Commission File Number)						(IRS Employer Identification Number)

1 Hormel Place, Austin, Minnesota						55912-3680
(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:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock $0.01465 par value

HRL

New York Stock Exchange

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 February 26, 2026, Hormel Foods Corporation (the Company) issued an earnings release announcing its financial results for the first quarter ended January 25, 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 February 26, 2026
104			The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.

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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: February 26, 2026			By			/s/ PAUL R. KUEHNEMAN
						PAUL R. KUEHNEMAN
						Interim Chief Financial Officer and Controller

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HORMEL FOODS REPORTS FIRST QUARTER FISCAL 2026 RESULTS

Company Achieves Net Sales of $3 billion and Organic Net Sales1 Growth of 2%

Company Reports Diluted EPS of $0.33; Adjusted Diluted EPS1 of $0.34

Updates GAAP Guidance; Reiterates Adjusted Full Year Fiscal 2026 Guidance

AUSTIN, Minn. (Feb. 26, 2026) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the first quarter of fiscal 2026, which ended January 25, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.

EXECUTIVE SUMMARY — FIRST QUARTER

•Net sales of $3.03 billion; organic net sales1 up 2%

•Operating income of $244 million; adjusted operating income1 of $247 million

•Operating margin of 8.0%; adjusted operating margin1 of 8.2%

•Earnings before income taxes of $234 million; adjusted earnings before income taxes1 of $238 million

•Diluted earnings per share of $0.33; adjusted diluted earnings per share1 of $0.34

•Cash flow from operations of $349 million

EXECUTIVE COMMENTARY

“We delivered solid first quarter fiscal 2026 results, with adjusted diluted earnings per share1 of $0.34, supported by our fifth consecutive quarter of organic net sales1 growth," said Jeff Ettinger, interim chief executive officer. "Our performance this quarter demonstrates the strength of our value-added, protein-centric portfolio and our disciplined execution against our key priorities, including pricing actions that are helping to close the gap between profitability and top-line growth."

“This was an encouraging start to the year, with strong performance by our Foodservice and International segments,” said John Ghingo, president. “We continue to solidify our position as a consumer-focused protein leader with a diversified portfolio of market-leading brands.These results reinforce our confidence in our adjusted full year fiscal 2026 guidance.”

FULL YEAR FISCAL 2026 GUIDANCE

For fiscal 2026, the Company:

•Reaffirms net sales in the range of $12.2 billion to $12.5 billion; organic net sales1 growth of 1% to 4%

•Updates operating income guidance to be in the range of $1.02 billion to $1.08 billion

•Reaffirms adjusted operating income1 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 $1.37 to $1.46

•Reaffirms adjusted diluted earnings per share1 in the range of $1.43 to $1.51, reflecting growth of 4% to 10%

1

			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			$1.37 - $1.46			$1.29 - $1.39
Adj. Diluted Earnings per Share1			$1.43 - $1.51			$1.43 - $1.51

Adjustments to operating income and diluted earnings per share guidance for fiscal 2026 include the impact from the sale of the Justin's® branded business, which was finalized in the first quarter.

This guidance does not include the impacts of the recently announced sale of the whole-bird turkey business expected to close in the second quarter of fiscal 2026. The expected reduction of fiscal 2026 net sales from this transaction is approximately $50 million; the Company also expects minimal impact to expected adjusted diluted earnings per share1. This transaction-related guidance does not reflect any items that are unknown at this time, including the impacts of gains/losses on the transaction that we are unable to reasonably estimate while evaluating the accounting implications.

PORTFOLIO SHAPING

The Company previously announced it has entered into a definitive agreement to sell its whole-bird turkey business, reflecting its ongoing portfolio-shaping efforts. The transaction is expected to close by the end of the Company's second quarter of fiscal 2026. Financial details of the whole-bird turkey transaction have not been disclosed. The Company will provide additional details on the transaction impacts following its completion.

"Our deliberate strategy around shaping our portfolio and sharpening our focus on value-added protein offerings has been demonstrated by our recently completed sale of a majority interest in the Justin’s® branded business and our definitive agreement to sell the whole-bird turkey business," said Ghingo. "These strategic transactions enable us to focus resources on high-growth opportunities that meet evolving consumer needs while reducing our exposure to volatile commodity markets. The Jennie-O® branded portfolio remains a strategic and important part of our growth strategy, and this move positions us to accelerate growth in value-added turkey categories where we have a clear consumer advantage."

SEGMENT HIGHLIGHTS – FIRST QUARTER

Retail

•Volume down 6%; organic volume1 down 6%

•Net sales down 2%; organic net sales1 down 2%

•Segment profit down 19%

Organic volume1 and organic net sales1 declined in the first quarter of fiscal 2026. Organic volume1 and organic net sales1 performance was significantly impacted by previously anticipated factors, including the strategic exit from select non-core private label snack nut items and declines in branded and private label packaged deli items. Key priority brands delivered year-over-year net sales growth, including Jennie-O® ground turkey and Planters® snack nuts. Segment profit declined due to lower sales, higher raw material input costs and higher logistics expenses.

Foodservice

•Volume flat; organic volume1 flat

•Net sales up 7%; organic net sales1 up 7%

•Segment profit up 13%

First quarter organic net sales1 for the Foodservice segment was up 7%, marking the 10th consecutive quarter of organic net sales1 growth for the segment. Growth was broad-based across multiple channels

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and categories, with strong performance across the customized solutions business, premium prepared proteins and branded pepperoni. While organic volume1 was flat, net sales growth was supported by our solutions-based products and the capabilities of our direct-selling organization. Segment profit increased for the first quarter of fiscal 2026, primarily driven by the benefit of pricing actions, which remained aligned with market dynamics.

International

•Volume up 1%; organic volume1 up 1%

•Net sales up 8%; organic net sales1 up 8%

•Segment profit up 10%

For the International segment, organic volume1 and organic net1 sales grew in the first quarter of fiscal 2026. Organic net sales1 growth was driven by strong performance in our multinational businesses and branded exports, led by SPAM® luncheon meat. Organic volume1 growth in the segment was primarily driven by growth in China and strong branded exports, led by SPAM® luncheon meat. International segment profit increased in the first quarter of fiscal 2026 as lower SG&A spend and growth in China were partially offset by lower export margins.

ADDITIONAL FINANCIAL DETAILS – FIRST QUARTER FISCAL 2026

Income Statement

•Operating margin and adjusted operating margin1 were 8.0% and 8.2%, respectively, compared to 7.6% and 8.5%, 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 8.0% and 7.9%, respectively, compared to 8.8% and 7.9%, respectively, in the prior year.

•The gain on the sale of our controlling equity interest in Justin's, LLC was $23.5 million.

•Advertising investments were $41 million, compared to $43 million last year.

•The effective tax rate was 22.4%, compared to 21.8% last year.

Cash Flow Statement

•Cash flow from operations was $349 million.

•Capital expenditures were $69 million, compared to $72 million last year. The largest projects in the quarter were related to the ambient meat snack facility in Jiaxing, China, and investments in data and technology.

•Depreciation and amortization expense was $67 million, comparable to last year.

•The Company returned approximately $160 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 $868 million at quarter end, an increase of $197 million from the end of fiscal 2025.

•Inventories at quarter end were $1.6 billion, a decrease of $100 million from the end of fiscal 2025.

PRESENTATION

A conference call will be webcast at 7 a.m. CT on Feb. 26, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 800-549-8228 (toll free) or 646-564-2877 (international) and providing the conference ID 71131. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Feb. 26, 2026, and will remain on the website for one year.

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ABOUT HORMEL FOODS

Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue across more than 80 countries worldwide. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America’s most responsible companies by Newsweek, was recognized by TIME magazine as one of the World’s Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.

FORWARD-LOOKING STATEMENTS

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

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

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

END NOTES

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

INVESTOR CONTACT

Florence Makope

ir@hormel.com

MEDIA CONTACT

Media Relations

media@hormel.com

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HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

In thousands, except per share amounts

Unaudited

						Quarter Ended
						January 25, 2026						January 26, 2025
Net Sales						$	3,027,317					$	2,988,813
Cost of Products Sold						2,557,742						2,513,581
Gross Profit						469,575						475,232
Selling, General, and Administrative						241,698						263,013
Equity in Earnings of Affiliates						15,820						16,111
Operating Income						243,697						228,330
Interest Income						6,528						7,543
Interest Expense						19,728						19,462
Other Income (Expense), Net						3,815						1,661
Earnings Before Income Taxes						234,312						218,073
Provision for Income Taxes						52,542						47,543
Effective Tax Rate						22.4		%				21.8		%
Net Earnings						181,769						170,530
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest						(32)						(45)
Net Earnings Attributable to Hormel Foods Corporation						$	181,801					$	170,575
Net Earnings Per Share:
Basic						$	0.33					$	0.31
Diluted						$	0.33					$	0.31
Weighted-average Shares Outstanding:
Basic						550,477						549,460
Diluted						550,706						549,854
Dividends Declared Per Share						$	0.2925					$	0.2900

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HORMEL FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION

In thousands

Unaudited

						January 25, 2026						October 26, 2025
Assets
Cash and Cash Equivalents						$	867,906					$	670,679
Short-term Marketable Securities						33,302						32,909
Accounts Receivable						696,252						784,812
Inventories						1,647,271						1,747,279
Taxes Receivable						58,808						96,791
Prepaid Expenses and Other Current Assets						84,702						73,187
Total Current Assets						3,388,240						3,405,656
Goodwill						4,888,532						4,924,087
Intangible Assets						1,588,104						1,647,297
Pension Assets						209,262						211,826
Investments in Affiliates						577,058						533,984
Other Assets						423,755						431,500
Property, Plant, and Equipment, Net						2,241,482						2,238,770
Total Assets						$	13,316,433					$	13,393,119
Liabilities and Shareholders’ Investment
Accounts Payable & Accrued Expenses						$	731,288					$	787,350
Accrued Marketing Expenses						129,824						113,947
Employee-related Expenses						224,470						273,402
Interest and Dividends Payable						175,868						180,700
Taxes Payable						4,983						18,752
Current Maturities of Long-term Debt						6,485						6,646
Total Current Liabilities						1,272,917						1,380,796
Long-term Debt Less Current Maturities						2,851,007						2,850,778
Pension and Postretirement Benefits						356,108						358,984
Deferred Income Taxes						663,854						661,349
Other Long-term Liabilities						219,340						225,397
Accumulated Other Comprehensive Loss						(233,023)						(243,646)
Other Shareholders’ Investment						8,186,231						8,159,461
Total Liabilities and Shareholders’ Investment						$	13,316,433					$	13,393,119

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HORMEL FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

In thousands

Unaudited

						Quarter Ended
						January 25, 2026						January 26, 2025
Operating Activities
Net Earnings						$	181,769					$	170,530
Depreciation and Amortization						67,095						65,872
Decrease (Increase) in Working Capital, Net of Divestitures						110,519						44,665
Other						(10,170)						28,139
Net Cash Provided by (Used in) Operating Activities						349,214						309,206
Investing Activities
Net Sale (Purchase) of Securities						(323)						(1,387)
Proceeds from Sale of Business						78,853						13,643
Purchases of Property, Plant, and Equipment						(68,993)						(72,167)
Proceeds from (Purchases of) Affiliates and Other Investments						(1,593)						(1,393)
Other						5						972
Net Cash Provided by (Used in) Investing Activities						7,948						(60,333)
Financing Activities
Repayments of Long-term Debt and Finance Leases						(1,825)						(2,202)
Dividends Paid on Common Stock						(159,501)						(154,980)
Other						(1,106)						14,120
Net Cash Provided by (Used in) Financing Activities						(162,433)						(143,063)
Effect of Exchange Rate Changes on Cash						2,498						(7,294)
Increase (Decrease) in Cash and Cash Equivalents						197,228						98,516
Cash and Cash Equivalents at Beginning of Year						670,679						741,881
Cash and Cash Equivalents at End of Period						$	867,906					$	840,398

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HORMEL FOODS CORPORATION

SEGMENT DATA

In thousands

Unaudited

						Quarter Ended
						January 25, 2026						January 26, 2025						% Change
Volume (lbs.)
Retail						693,884						736,886						(5.8)
Foodservice						244,419						243,853						0.2
International						75,461						74,569						1.2
Total Volume (lbs.)						1,013,764						1,055,308						(3.9)
Net Sales
Retail						$	1,847,806					$	1,890,133					(2.2)
Foodservice						998,227						930,185						7.3
International						181,284						168,495						7.6
Total Net Sales						$	3,027,317					$	2,988,813					1.3
Segment Profit
Retail						$	96,190					$	119,147					(19.3)
Foodservice						156,541						138,826						12.8
International						22,910						20,845						9.9
Total Segment Profit						275,641						278,818						(1.1)
Net Unallocated Expense						41,298						60,700						(32.0)
Noncontrolling Interest						(32)						(45)						30.1
Earnings Before Income Taxes						$	234,312					$	218,073					7.4

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APPENDIX: NON-GAAP MEASURES

This press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company’s results and business trends relative to past performance and the Company’s competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.

Transform and Modernize (T&M) Initiative

In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that non-recurring costs associated with the T&M initiative are not reflective of the Company’s ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.

Gain or Loss on Sale of Business

In the first quarter of fiscal 2026, the Company sold 51% of its equity interest in Justin's, LLC, resulting in a gain on the sale. In the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. The Company believes the one-time impacts from these sales are not reflective of the Company’s ongoing operating cost structure, are not indicative of the Company’s core operating performance, and are not meaningful when comparing the Company’s operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts.

Legal Matters

From time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company’s core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company’s operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.

Litigation Settlements

In fiscal 2025, the Company entered into a settlement agreement with a plaintiff in a pending antitrust litigation.

Corporate Restructuring Plan

In the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company’s future needs, while enabling continued investment in the Company’s growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes the charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.

Consulting Agreement

On October 27, 2025, the Company entered into an agreement with its former Chief Executive Officer (CEO), pursuant to which the former CEO is expected to provide consulting services to the Company until April 2027. Consulting costs related to the agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes non-recurring costs associated with the consulting agreement are not reflective of the Company’s ongoing operating

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cost structure, are not indicative of the Company’s core operating performance, and are not meaningful when comparing the Company’s operating performance against that of prior periods; therefore, the Company is excluding these discrete costs.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.

HORMEL FOODS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
Unaudited
			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025
Cost of Products Sold (GAAP)			$	2,557,742					$	2,513,581
Transform and Modernize Initiative(1)			(382)						(186)
Adjusted Cost of Products Sold (Non-GAAP)			$	2,557,360					$	2,513,395
SG&A (GAAP)			$	241,698					$	263,013
Transform and Modernize Initiative(2)			(10,543)						(13,968)
Gain (Loss) on Sale of Business			23,508						(11,324)
Corporate Restructuring Plan			(8,476)						—
Consulting Agreement			(7,775)						—
Litigation Settlements			—						(240)
Adjusted SG&A (Non-GAAP)			$	238,412					$	237,481
Operating Income (GAAP)			$	243,697					$	228,330
Transform and Modernize Initiative(1)(2)			10,925						14,155
(Gain) Loss on Sale of Business			(23,508)						11,324
Corporate Restructuring Plan			8,476						—
Consulting Agreement			7,775						—
Litigation Settlements			—						240
Adjusted Operating Income (Non-GAAP)			$	247,364					$	254,049
Earnings Before Income Taxes (GAAP)			$	234,312					$	218,073
Transform and Modernize Initiative(1)(2)			10,925						14,155
(Gain) Loss on Sale of Business			(23,508)						11,324
Corporate Restructuring Plan			8,476						—
Consulting Agreement			7,775						—
Litigation Settlements			—						240
Adjusted Earnings Before Income Taxes (Non-GAAP)			$	237,979					$	243,791
Provision for Income Taxes (GAAP)			$	52,542					$	47,543
Transform and Modernize Initiative(1)(2)			2,677						3,086
(Gain) Loss on Sale of Business			(5,760)						2,469
Corporate Restructuring Plan			2,077						—
Consulting Agreement			—						—
Litigation Settlements			—						52
Adjusted Provision for Income Taxes (Non-GAAP)			$	51,536					$	53,149

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HORMEL FOODS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
Unaudited
			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025
Net Earnings Attributable to Hormel Foods Corporation (GAAP)			$	181,801					$	170,575
Transform and Modernize Initiative(1)(2)			8,248						11,069
(Gain) Loss on Sale of Business			(17,749)						8,855
Corporate Restructuring Plan			6,400						—
Consulting Agreement			7,775						—
Litigation Settlements			—						188
Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP)			$	186,475					$	190,687
Diluted Earnings Per Share (GAAP)			$	0.33					$	0.31
Transform and Modernize Initiative(1)(2)			0.01						0.02
(Gain) Loss on Sale of Business			(0.03)						0.02
Corporate Restructuring Plan			0.01						—
Consulting Agreement			0.01						—
Litigation Settlements			—						—
Adjusted Diluted Earnings Per Share (Non-GAAP)			$	0.34					$	0.35

SG&A as a Percent of Net Sales (GAAP)			8.0		%				8.8		%
Transform and Modernize Initiative(2)			(0.3)						(0.5)
Gain (Loss) on Sale of Business			0.8						(0.4)
Corporate Restructuring Plan			(0.3)						—
Consulting Agreement			(0.3)						—
Litigation Settlements			—						—
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)			7.9		%				7.9		%
Operating Margin (GAAP)			8.0		%				7.6		%
Transform and Modernize Initiative(1)(2)			0.4						0.5
(Gain) Loss on Sale of Business			(0.8)						0.4
Corporate Restructuring Plan			0.3						—
Consulting Agreement			0.3						—
Litigation Settlements			—						—
Adjusted Operating Margin (Non-GAAP)			8.2		%				8.5		%

(1)    Comprised primarily of asset write-offs and severance related to supply chain and portfolio optimization.

(2)    Comprised primarily of project-based external consulting fees.

11

ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)

The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of the Company's controlling equity interest in Justin's, LLC in the first quarter of fiscal 2026.

			Quarter Ended
			January 25, 2026									January 26, 2025
In thousands						GAAP												GAAP			Divestiture			Non-GAAP Organic			Non-GAAP % Change
Volume (lbs.)
Retail						693,884												736,886			(1,413)			735,472			(5.7)
Foodservice						244,419												243,853			(77)			243,777			0.3
International						75,461												74,569			(13)			74,556			1.2
Total Volume (lbs.)						1,013,764												1,055,308			(1,503)			1,053,805			(3.8)
Net Sales
Retail						$	1,847,806											$	1,890,133		$	(7,921)		$	1,882,212		(1.8)
Foodservice						998,227												930,185			(506)			929,679			7.4
International						181,284												168,495			(109)			168,386			7.7
Total Net Sales						$	3,027,317											$	2,988,813		$	(8,536)		$	2,980,277		1.6

Forward-looking GAAP to Non-GAAP Measures

The information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.

Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)

To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale of the Justin's® branded business in the first quarter of fiscal 2026.

In billions			Fiscal 2026 Outlook												2025 Results						Change
Net Sales (GAAP)			$	12.2		-			$	12.5					$	12.1					1%			-			3%
Divestitures			—			-			—						(0.1)
Organic Net Sales (Non-GAAP)			$	12.2		-			$	12.5					$	12.0					1%			-			4%

Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)

The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.

In fiscal 2026, the Company expects:

•Operating income (GAAP) in the range of $1,017 million to $1,082 million

•Adjustments for the T&M initiative of $43 million to $49 million

•Adjustments for corporate restructuring plan-related charges of $8.5 million

•Adjustment for a gain related to the sale of the Justin's® branded business of $(23.5) million

•Adjustment for the Consulting Agreement of $7.8 million

Resulting in an adjusted operating income range (non-GAAP) of $1,059 million to $1,118 million.

12

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 $1.37 to $1.461

•Adjustments for the T&M initiative of $0.06 to $0.07

•Adjustments for corporate restructuring plan-related charges of $0.01

•Adjustment for a gain related to the sale of the Justin's® branded business of $(0.03)

•Adjustment for the Consulting Agreement of $0.01

Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.43 to $1.51.

1    This does not include the effects of the sale of the whole-bird turkey business, as the Company is unable to reasonably estimate the impact while evaluating the accounting implications.

13

FAQ

How did Hormel Foods (HRL) perform in Q1 fiscal 2026?

Hormel Foods delivered Q1 fiscal 2026 net sales of $3.03 billion and diluted EPS of $0.33. Organic net sales grew 1.6%, with strong contributions from Foodservice and International, partly offset by weaker Retail performance and higher input and logistics costs.

What is Hormel Foods’ (HRL) earnings guidance for full-year 2026?

Hormel Foods guided full-year fiscal 2026 diluted EPS to $1.37–$1.46 and adjusted diluted EPS to $1.43–$1.51. The company expects adjusted earnings growth of 4–10%, supported by operating income guidance of $1.059–$1.118 billion on a non-GAAP basis.

How did Hormel Foods’ (HRL) business segments perform in Q1 2026?

In Q1 2026, Retail net sales declined 2% and segment profit fell 19%. Foodservice net sales rose 7% with segment profit up 13%, while International net sales increased 8% and segment profit grew 10%, driven by multinational businesses and SPAM® exports.

What portfolio changes did Hormel Foods (HRL) highlight in the quarter?

Hormel completed the sale of its controlling equity interest in the Justin’s® branded business, recording a $23.5 million gain. It also signed a definitive agreement to sell its whole-bird turkey business, expected to trim about $50 million from fiscal 2026 net sales once closed.

How strong was Hormel Foods’ (HRL) cash flow and balance sheet in Q1 2026?

Hormel generated $349 million in cash flow from operations in Q1 2026 and spent $69 million on capital expenditures. Cash on hand reached $868 million, inventories fell to $1.6 billion, and the company described its liquidity and debt levels as conservative.

What are Hormel Foods’ (HRL) expectations for 2026 organic net sales?

Hormel expects fiscal 2026 organic net sales to grow 1–4%, with total net sales projected at $12.2–$12.5 billion. The organic outlook excludes the impact of the Justin’s® divestiture and aligns with the company’s focus on value-added, protein-centric branded products.

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