Hormel Foods (HRL) Q4 2025 Earnings
How Did HRL Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +1.16%.
Did HRL Beat Earnings? Q4 2025 Results
Yes. Hormel Foods reported Q4 2025 earnings of $0.32 a share on Dec 3, 2025, beating the $0.30 consensus estimate by 6.0%. Revenue was $3.2B against a $3.2B estimate.
Hormel Foods delivered a mixed fourth quarter of fiscal 2025, edging past earnings expectations while falling just short on revenue as persistent commodity inflation and a notable impairment charge clouded an otherwise resilient top-line performance. On an adjusted basis, the company posted diluted EPS of $0.32, ahead of the $0.30 consensus estimate by 6.67%, though down from $0.42 in the year-ago period as elevated input costs across key protein categories squeezed margins. Net sales rose 1.5% year over year to $3.19 billion, marginally below the $3.22 billion consensus, with organic growth of 2% driven largely by Foodservice strength in branded bacon, pepperoni, and the Jennie-O turkey portfolio. A $234 million non-cash impairment charge tied to international investments and certain retail intangibles pushed GAAP results to a loss, a dynamic <a href="https://247wallst.com/investing/2025/10/29/kraft-heinz-shares-fall-after-mixed-q3-earnings/">not unique to packaged food</a> peers navigating this environment. Looking ahead, Hormel guided fiscal 2026 adjusted EPS of $1.43 to $1.51, representing 4% to 10% growth, with commodity relief and restructuring benefits expected to build through the year.
- Turkey portfolio strength across Retail and Foodservice segments
- Planters snack nuts and Applegate products drove Retail growth
- Broad-based organic net sales growth in Foodservice from customized solutions, branded bacon, pepperoni, and premium prepared proteins
- Continued growth in China market for International segment
- Non-cash impairment charges of $234 million significantly impacted GAAP results
- Elevated commodity input costs pressured profitability across all segments
- Chicken-product recall negatively impacted Foodservice segment profit
“We finished fiscal 2025 with another quarter of solid top-line growth, driven by the continued relevance of our brands and the strength of our value-added portfolio. Despite this momentum, profitability remained challenged due to persistent input cost inflation and discrete items. We have taken decisive actions to improve profitability, including targeted pricing initiatives, reductions in administrative expenses, and continued investment in our Transform and Modernize (T&M) initiative. These efforts are laying a solid foundation for improved earnings performance in fiscal 2026.”
Hormel Foods CEO, on the earnings call
What Was Hormel Foods's Outlook in Q4 2025?
For fiscal 2026, Hormel expects net sales of $12.2 billion to $12.5 billion with organic net sales growth of 1% to 4%. Adjusted operating income is projected at $1.06 billion to $1.12 billion (growth of 4% to 10%), and adjusted diluted EPS of $1.43 to $1.51 (growth of 4% to 10%). GAAP diluted EPS is expected between $1.29 and $1.39. Key assumptions include net sales growth across each reporting segment despite a pressured consumer environment, a modest improvement in most commodity markets during the second half, strong brand investments with advertising above recent levels, benefits from growth and efficiency programs including T&M and corporate restructuring, continued earnings pressure in Q1 with growth expected for the remainder of the year, an effective tax rate of 21.5% to 22.5%, and capital expenditures of $260 million to $290 million.
HRL YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $3.1B | +1.5% |
| Gross Profit | $444.8M | $521.3M | −14.7% |
| Operating Income | $2.2M | $293.5M | −99.3% |
HRL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.