Hormel Foods reported adjusted diluted earnings per share of $0.37 for the third quarter of fiscal 2026, up 6% from the prior year and $0.02 above analyst expectations. The company’s net sales totaled $2.96 billion, missing the $3.05 billion consensus estimate by nearly 3%.
The foodservice segment posted a 2% increase in net sales and a 3% rise in segment profit, marking its 12th consecutive quarter of organic net sales growth. In contrast, the retail segment saw net sales decline 4%, with volume down 9% and organic net sales decreasing 3%, leading to a 4% drop in segment profit. The international segment reported a 5% decline in net sales, with organic net sales down 4%, while segment profit fell 254% due to a non-cash impairment charge. Excluding the impairment, adjusted segment profit was flat.
Full-year guidance was revised downward, with net sales now projected between $12.1 billion and $12.2 billion, down from a prior range of $12.2 billion to $12.5 billion. Organic net sales growth for the year is expected to be 1% to 2%, aligning with the lower end of the company’s long-term growth algorithm of 2% to 3%. Adjusted operating income guidance was raised to $1.08 billion to $1.12 billion, while adjusted diluted EPS guidance was increased to $1.45 to $1.51. Capital expenditures are forecast between $260 million and $290 million.
Hormel also outlined strategic portfolio adjustments, including the planned exit from private label snack nuts by the end of fiscal 2026 and the divestiture of its Justin’s brand, expected to be fully lapped by mid-first quarter fiscal 2027. Adjustments to organic volume and net sales metrics will begin in Q4 fiscal 2026 following the divestiture of Brazil operations, with a comparable exit from the whole birds category starting in Q1 fiscal 2027.
Shares fell 9.05% to $21.57 following the release.
