Hormel Foods (HRL) Q2 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of organic net sales growth, with all segments contributing to top-line and segment profit gains; net sales reached $2.97 billion, up 3% organically year-over-year.

• Delivered double-digit adjusted diluted EPS growth to $0.40, while GAAP EPS declined 12% to $0.29 due to a $61 million loss on the sale of the whole-bird turkey business.

• Strategic focus on protein-centric portfolio, pricing actions, and productivity gains drove performance.

• Completed divestiture of whole-bird turkey business to focus on higher value, branded offerings.

• Cash flow from operations for the quarter was $179 million; for the first six months, $528 million, up 44% year-over-year.

Financial highlights

• Organic net sales grew 3% year-over-year in Q2, with Retail up 1%, Foodservice up 7%, and International up 5%.

• Adjusted diluted EPS reached $0.40, up 14% versus prior year; GAAP diluted EPS was $0.29, down 12%.

• Segment profit increased 13% in Retail, 11% in Foodservice, and 20% in International.

• Gross margin expanded to 17.4%, up from 16.7% a year ago.

• Returned $161 million to shareholders via dividends; cash on hand rose to $827 million.

Outlook and guidance

• Reaffirmed full-year net sales guidance of $12.2–$12.5 billion and adjusted diluted EPS of $1.43–$1.51.

• Adjusted operating income expected at $1.06–$1.12 billion, up 4–10% year-over-year.

• Expecting flat to low single-digit retail growth, mid-single digit Foodservice growth, and high single-digit international growth.

• Effective tax rate projected between 21.5% and 22.5%.

• Anticipate bottom-line growth in the second half, primarily in Q4.