Hormel Foods Corporation reported third-quarter fiscal 2026 results that beat earnings expectations but fell short on revenue, sending shares down nearly 2% in pre-market trading.
The global branded food company posted adjusted earnings per share of $0.37, exceeding the analyst consensus of $0.35 by 2 cents. Net sales totaled $2.96 billion, missing the $3.05 billion estimate and declining 2.4% from $3.03 billion a year earlier. Organic net sales fell 1.7%.
Adjusted operating margin expanded to 9.0% from 8.4% in the prior-year period. Operating cash flow rose 54% year-over-year to $241 million, while the company returned $161 million to shareholders via dividends.
Segment performance showed mixed results. The retail segment, Hormel’s largest, reported net sales of $1.78 billion, down 4.3%. The foodservice segment extended its streak of organic growth with a 1.6% increase to $1.00 billion, marking its 12th consecutive quarter of gains. International sales fell 4.7% to $178.7 million.
Management attributed the revenue shortfall to portfolio adjustments, lower commodity pricing, and a challenging consumer backdrop. Interim CEO Jeff Ettinger highlighted the company’s progress, stating that solid quarterly results supported a raised and narrowed adjusted EPS outlook for fiscal 2026.
The company raised its adjusted EPS guidance to a range of $1.45 to $1.51, with a midpoint of $1.48, though this remains slightly below the $1.50 consensus. Revenue guidance was lowered to $12.1 billion to $12.2 billion, with a midpoint of $12.15 billion, below the $12.24 billion estimate.
