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Hormel Foods (HRL) investor relations material
Hormel Foods Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for Q1 2026 reached $3.03 billion, with organic net sales up 2% year-over-year, marking the fifth consecutive quarter of growth, driven by Foodservice and International segments, while Retail declined.
Adjusted diluted EPS was $0.34, supported by strong Foodservice and International performance, but offset by Retail declines and non-recurring items.
Portfolio shaping continued with a definitive agreement to sell the whole-bird turkey business and the sale of a majority interest in Justin’s, LLC, sharpening focus on value-added protein offerings.
Initiatives to transform and modernize operations and a restructuring program are underway, with benefits expected to materialize more in Q2.
Cash flow from operations increased to $349 million, mainly from inventory reductions.
Financial highlights
Q1 net sales were $3.03 billion, with 2% organic net sales growth year-over-year; Foodservice up 7%, International up 8%, Retail down 2%.
Adjusted operating income was $247 million; adjusted operating margin was 8.2%.
Diluted EPS was $0.33; adjusted diluted EPS was $0.34.
Cash and cash equivalents at quarter-end were $868 million, up $197 million from prior year-end.
Paid $160 million in dividends, marking the 390th consecutive quarterly dividend.
Outlook and guidance
Fiscal 2026 net sales guidance reaffirmed at $12.2–$12.5 billion; organic net sales growth of 1–4%.
Adjusted operating income guidance updated to $1.06–$1.12 billion, reflecting 4–10% growth.
Adjusted diluted EPS guidance reaffirmed at $1.43–$1.51, up 4–10% year-over-year.
Q2 expected to deliver top-line growth and adjusted EPS flat to slightly up year-over-year.
Effective tax rate for fiscal 2026 expected between 21.5% and 22.5%.
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