AUSTIN, Minn., May 28, 2026 /PRNewswire/ -- 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
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.
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.
PRESENTATIONA 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 FOODSHormel 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 STATEMENTSThis 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.
Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.
END NOTES
1
Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.
INVESTOR CONTACTJess Blomberg[email protected]
MEDIA CONTACTLaura Cederberg[email protected]
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
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
