Hormel Foods Corporation (HRL) reported third-quarter fiscal 2026 adjusted earnings per share of $0.37, exceeding the $0.35 consensus estimate by $0.02. Revenue totaled $2.96 billion, missing the $3.05 billion forecast by $90 million. Organic net sales declined 2% year-over-year, though year-to-date organic net sales rose 1% through the first nine months of the fiscal year.
Gross profit reached $472 million, with a gross margin of 15.9%, while the adjusted operating margin improved to 9%, up 60 basis points from the prior year. Operating cash flow surged 54% to $241 million, supported by capital expenditures of $68 million. Cash on hand increased to $840 million at quarter-end, up $169 million from the fiscal 2025 year-end. The company’s market capitalization stood at $11.96 billion, with a current ratio of 1.94.
Shares of Hormel Foods fell 8.81% in pre-market trading to $21.62, extending declines from the prior close of $23.71. The stock has traded within a 52-week range of $19.70 to $26.60.
Full-year fiscal 2026 adjusted EPS guidance was raised and narrowed to a range of $1.45 to $1.51 per share, implying 6% to 10% year-over-year growth. The company also narrowed its full-year net sales outlook to $12.1 billion to $12.2 billion, reflecting organic growth of 1% to 2%. However, fourth-quarter adjusted EPS expectations were reduced to approximately $0.37, down from a prior estimate of around $0.40.
Interim CEO Jeff Ettinger described the quarter as "solid, though admittedly not as strong as Q2," citing progress on strategic priorities. CEO-elect John Ghingo emphasized the company’s portfolio strength, including brands such as JENNIE-O®, Applegate, Planters, Hormel Chili, and SPAM. He noted that the consumer environment remains challenging due to persistent inflation and high fuel prices.
The company’s foodservice segment reported its 12th consecutive quarter of organic net sales growth, driven by premium prepared proteins and branded pepperoni. Retail performance was impacted by the divestiture of the whole-bird turkey business, exits from private-label snack nut operations, and pricing adjustments. Internationally, Hormel decided to divest its Brazil operations, with Swen Neufeldt relocated to Singapore to focus on the Asia Pacific region.
