Companies /Consumer Defensive

Hormel Foods Corp

NYSE: HRL Packaged Foods

Q3 2026 Earnings

Reported Aug 26, 2026, 5:42pm ET · SEC source
$0.37
Beat +4.64%
EPS · est. $0.35 Adjusted

GAAP EPS of $0.11 includes a $56M loss on Brazil divestiture ($0.10 per share impact), a $48.2M non-cash impairment charge on a minority investment in Indonesia ($0.09 per share), a $37.5M litigation settlement ($0.05 per share), and $12.2M in Transform and Modernize initiative costs ($0.02 per share)

$3.0B
Miss −2.48%
Revenue · est. $3.0B
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Aug 26Aug 27report 5:42pm ETearnings+0.1%−8.8%
−8%−4%0Aug 26Aug 27earnings+0.1%−8.8%
HRL −8.8%S&P 500 +0.1%
−8%−4%0Aug 26Aug 27report 5:42pm ETearnings+0.2%−8.8%
−8%−4%0Aug 26Aug 27earnings+0.2%−8.8%
HRL −8.8%NASDAQ +0.2%
−9%−6%−3%0Aug 26Aug 27report 5:42pm ETearnings+0.1%−9.0%
−9%−6%−3%0Aug 26Aug 27earnings+0.1%−9.0%
HRL −9.0%S&P 500 +0.1%
−9%−6%−3%0Aug 26Aug 27report 5:42pm ETearnings+0.3%−9.0%
−9%−6%−3%0Aug 26Aug 27earnings+0.3%−9.0%
HRL −9.0%NASDAQ +0.3%
−0.29%
Day of report
−9.60%
Next session

Did HRL Beat Earnings? Q3 2026 Results

Hormel Foods delivered a mixed third quarter for fiscal 2026, beating on the bottom line while falling short on revenue as a wave of one-time charges obscured underlying operational improvement. Adjusted diluted EPS came in at $0.37, clearing the $0.35 consensus estimate by 4.64%, while net sales of $2.96 billion declined 2.4% year-over-year and trailed expectations of $3.04 billion by 2.48%. The headline GAAP result was severely distorted by three discrete items: a $56 million loss on the divestiture of its Brazil Ceratti operations, a $48.22 million non-cash impairment on a minority stake in Indonesia, and a $37.50 million antitrust litigation settlement, collectively pushing GAAP EPS down to $0.11 from $0.33 a year ago. Foodservice was the operational bright spot, posting its 12th consecutive quarter of organic net sales growth and helping lift adjusted operating margin to 9.0% from 8.4%. Looking ahead, Hormel raised and narrowed its fiscal 2026 adjusted EPS guidance to $1.45-$1.51, reflecting 6%-10% growth, while trimming its net sales outlook to $12.1-$12.2 billion to account for portfolio-shaping divestitures.

Key Takeaways
  • Foodservice segment delivered 12th consecutive quarter of organic net sales growth
  • Premium prepared proteins, branded pepperoni, and Jennie-O turkey drove Foodservice growth
  • Favorable pork input costs supported Foodservice segment profit
  • SPAM, Applegate, and Hormel chili delivered solid Retail growth among priority brands
  • Value-added turkey offerings and contract manufacturing contributed positively in Retail
  • Cash flow from operations increased 54% year-over-year to $241 million
  • Adjusted operating margin expanded to 9.0% from 8.4%

“We delivered solid third quarter results, growing our adjusted earnings and continuing to advance our fiscal 2026 objectives. 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.”

Hormel Foods CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2026, Hormel raised and narrowed its adjusted diluted EPS guidance to $1.45–$1.51 (previously $1.43–$1.51), reflecting 6%–10% growth. Adjusted operating income guidance was raised to $1.075–$1.115 billion. Net sales guidance was updated to $12.1–$12.2 billion (previously $12.2–$12.5 billion), reflecting organic net sales growth of 1%–2%. GAAP diluted EPS guidance was updated to $1.06–$1.12 (previously $1.28–$1.37), reflecting the estimated loss related to the Brazil divestiture, a non-cash impairment charge, and a litigation settlement. The Brazil divestiture closed in early Q4 fiscal 2026.

HRL YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$900.0M$1.8B$2.7B$3.0B$3.0BRevenue$487.3M$471.5MGross Profit$239.7M$110.9MOperating Income$183.8M$59.6MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

HRL Revenue by Segment

Retail$1.8B−4.3%
Foodservice$1.0B+1.6%
International$178.7M−4.7%

Figures from SEC filings and company reports. Not investment advice.