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Oct 26, 2025
Hormel Q4 2025 Earnings Report
Hormel Foods reported a quarter of solid top-line growth, driven by brand relevance and value-added portfolio strength, but profitability was challenged by input cost inflation and discrete items.
Key Takeaways
Hormel Foods Corporation reported mixed results for the fourth quarter of fiscal 2025, with net sales increasing by 1.5% to $3.186 billion, but operating income significantly declined to $2 million due to non-cash impairment charges. Diluted earnings per share were a loss of $0.10, compared to a gain of $0.40 in the prior year.
Net sales for the fourth quarter increased by 1.5% to $3.186 billion, with organic net sales up 2%.
Operating income for the quarter was $2 million, a significant decrease from $294.481 million in the prior year, primarily due to $234 million in non-cash impairment charges.
Diluted earnings per share for the quarter was a loss of $0.10, compared to a gain of $0.40 in the prior year.
Cash flow from operations for the quarter was $323 million, demonstrating continued operational cash generation.
Revenue by Segment
Forward Guidance
For fiscal 2026, Hormel Foods expects net sales in the range of $12.2 billion to $12.5 billion, with organic net sales growth of 1% to 4%. Operating income is projected to be between $0.96 billion and $1.03 billion, and adjusted diluted earnings per share are expected to be in the range of $1.43 to $1.51.
Positive Outlook
- Net sales growth across each reporting segment is anticipated.
- A modest improvement in most commodity markets is expected during the second half of the year.
- Strong brand investments, with advertising support above recent levels, are planned.
- Benefits from growth and efficiency programs, including the T&M initiative and administrative expense reductions, are expected.
- Adjusted operating income is projected to grow by 4% to 10%.
Challenges Ahead
- A pressured consumer environment is assumed.
- Commodity markets are expected to remain above historical levels.
- Continued earnings pressure is anticipated in the first quarter.
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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