Hormel Foods Reports First Quarter Fiscal 2026 Results

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February 26, 2026

Austin, Minn.

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

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%

	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 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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END NOTES

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

About Hormel Foods – Inspired People. Inspired Food.™

Hormel 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, one of America’s most responsible companies by Newsweek, 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. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world’s most trusted and iconic brands to tables across the globe. 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.