Hormel Foods
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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.
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Q1 2026 earnings summary26 Feb, 2026

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%.

Retail segment profit decline drivers
Divestiture impact on future portfolio strategy
Key investments for future growth drivers
Retail margin recovery: structural changes or execution?
Logistics cost pressures: seasonal or persistent?
Whole-bird divestiture: portfolio volatility reduction?
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Q2 202628 May, 2026
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Frequently asked questions

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company offers bacon line of products; lunchmeats; pepperoni; cured pork bellies; cooked hams; and specialty meat items, such as Swiss cheese curl snacks. It also provides processed meats, such as cooked chicken products; cooked beef products for barbecue grilling; and sliced meats for sandwiches. In addition, the company offers consumer nut products comprising trail mixes featuring a variety of nuts and other ingredients including dried fruits such as raisins or cranberries, peanuts, chocolate chips, coconut flakes and sea salt; snack mixes of roasted nuts in a variety of flavors including BBQ and cinnamon sugar flavored almonds; single ingredient trail mixes consisting of nuts and dried fruits such as raisins or cranberries; candied nuts products including whole cashews in a wax shell or roasted cashews coated in chocolate or caramel.

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