Companies /Consumer Defensive

Hormel Foods Corp

NYSE: HRL Packaged Foods
$21.41
▼ $2.30 (−9.70%) today
Markets open · 12:39pm ET

Q1 2026 Earnings

Reported Feb 25, 2026, 5:39pm ET · SEC source
$0.34
Beat +6.12%
EPS · est. $0.32
$3.0B
Miss −1.00%
Revenue · est. $3.1B
−0.3%
Trailing market
HRL vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0Feb 25Feb 26report 5:39pm ETearnings−0.6%−1.9%
−2%0Feb 25Feb 26earnings−0.6%−1.9%
HRL −1.9%S&P 500 −0.6%
−2%0Feb 25Feb 26report 5:39pm ETearnings−1.3%−1.9%
−2%0Feb 25Feb 26earnings−1.3%−1.9%
HRL −1.9%NASDAQ −1.3%
−4%−2%0+2%Feb 25Mar 5report 5:39pm ETearnings−1.8%−4.3%
−4%−2%0+2%Feb 25Mar 5earnings−1.8%−4.3%
HRL −4.3%S&P 500 −1.8%
−4%−2%0+2%Feb 25Mar 5report 5:39pm ETearnings−1.5%−4.3%
−4%−2%0+2%Feb 25Mar 5earnings−1.5%−4.3%
HRL −4.3%NASDAQ −1.5%
−1.90%
Day of report
−1.94%
Next session
−3.44%
One week
−8.85%
30 days

S&P 500 over the same 30 days: −8.52%.

Did HRL Beat Earnings? Q1 2026 Results

Hormel Foods posted a mixed but fundamentally steady first quarter of fiscal 2026, delivering an adjusted diluted EPS of $0.34 against a consensus estimate of $0.32, a 6.12% beat, while revenue of $3.03 billion edged 1.3% higher year-over-year but fell just short of the $3.06 billion analysts had expected. The profit picture was shaped largely by a sharp divergence between segments: Foodservice notched its 10th consecutive quarter of organic growth, with segment profit climbing 13%, while Retail remained a drag as organic net sales slipped 2% and segment profit fell 19%, pressured by the company's deliberate exit from non-core private label snack nut items and rising input costs. Portfolio simplification, a strategy <a href="https://247wallst.com/investing/2026/02/11/kraft-heinz-just-shocked-investors-with-a-massive-pivot/">reshaping major food companies</a> across the industry, remained central to Hormel's narrative, with the completed Justin's divestiture and a pending sale of its whole-bird turkey business expected to reduce fiscal 2026 sales by roughly $50 million. Management reaffirmed full-year adjusted diluted EPS guidance of $1.43 to $1.51 and raised its GAAP EPS outlook to $1.37 to $1.46.

Key Takeaways
  • Fifth consecutive quarter of organic net sales growth
  • Foodservice segment delivered 10th consecutive quarter of organic net sales growth driven by customized solutions, premium prepared proteins, and branded pepperoni
  • International growth led by SPAM luncheon meat and China operations
  • Pricing actions helping close gap between profitability and top-line growth
  • Favorable working capital movements boosted operating cash flow
  • SG&A expense reduction as percent of net sales from 8.8% to 8.0%

“We delivered solid first quarter fiscal 2026 results, with adjusted diluted earnings per share of $0.34, supported by our fifth consecutive quarter of organic net sales growth. 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.”

Hormel Foods CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2026, Hormel reaffirms net sales in the range of $12.2 billion to $12.5 billion with organic net sales growth of 1% to 4%. The company updated GAAP operating income guidance to $1.02 billion to $1.08 billion and GAAP diluted EPS to $1.37 to $1.46 (raised from $1.29 to $1.39 previously), reflecting the gain on the Justin's sale. Adjusted operating income guidance is reaffirmed at $1.06 billion to $1.12 billion (4% to 10% growth), and adjusted diluted EPS is reaffirmed at $1.43 to $1.51 (4% to 10% growth). The pending whole-bird turkey business sale is expected to reduce fiscal 2026 net sales by approximately $50 million with minimal impact to adjusted diluted EPS.

HRL YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$900.0M$1.8B$2.7B$3.0B$3.0BRevenue$475.2M$469.6MGross Profit$228.3M$243.7MOperating Income$170.6M$181.8MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

HRL Revenue by Segment

Retail$1.8B−2.2%
Foodservice$998.2M+7.3%
International$181.3M+7.6%

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