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Jan 25
Hormel Q1 2026 Earnings Report
Hormel Foods reported first quarter fiscal 2026 results with net sales of $3.0 billion and organic growth of 2%.
Key Takeaways
Hormel Foods delivered a solid first quarter for fiscal 2026, characterized by organic net sales growth and strong performance in the Foodservice and International segments. While the Retail segment faced headwinds from strategic exits and higher costs, the company reaffirmed its full-year adjusted guidance and continued its portfolio-shaping strategy through the sale of the Justin's business and the announced sale of its whole-bird turkey business.
Achieved net sales of $3.03 billion, representing a 1.3% increase over the prior year.
Organic net sales grew 2%, marking the fifth consecutive quarter of organic growth.
Foodservice segment profit increased 13% on broad-based channel growth.
International segment profit rose 10%, driven by strong performance in China and SPAM exports.
Revenue by Segment
Forward Guidance
Hormel updated its GAAP guidance to reflect the Justin's sale while reaffirming its full-year adjusted financial targets.
Positive Outlook
- Reaffirmed net sales range of $12.2 billion to $12.5 billion.
- Organic net sales growth expected between 1% and 4%.
- Reaffirmed adjusted diluted EPS range of $1.43 to $1.51.
- Strong performance expected to continue in Foodservice and International segments.
- Pricing actions helping to close the gap between profitability and top-line growth.
Challenges Ahead
- Retail segment profit impacted by higher raw material and logistics costs.
- Volume declines in Retail due to strategic exit from non-core private label items.
- Expected reduction of $50 million in fiscal 2026 sales from the whole-bird turkey business sale.
- Effective tax rate trending higher than the previous year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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