Hormel Foods Stock Earnings Reports

Hormel reported a strong fiscal 2026 second quarter with its sixth consecutive quarter of organic net sales growth (organic net sales +3%) and double-digit adjusted EPS growth (adjusted EPS $0.40, +14% y/y). All three segments contributed: Foodservice (organic +7%, improved profitability), International (organic +5%, segment profit +20%), and Retail (organic +1%, margin expansion, segment profit +13%) — with notable strength in branded, protein-led platforms (Jennie-O, Applegate, SPAM, pepperoni/pizza toppings, Herdez). Gross margin expanded 70 bps to 17.4% driven by pricing, favorable mix, productivity and better turkey manufacturing performance; logistics and commodity costs were headwinds, and rising fuel added pressure late in the quarter. Management closed the divestiture of the whole-bird turkey business (recorded a loss in SG&A), returned $161M in dividends, ended the quarter with $827M cash, and hired a Chief Technology Officer to accelerate digital/technology initiatives. The company reaffirmed full-year guidance: net sales $12.2–$12.5B and adjusted EPS $1.43–$1.51, while noting Q3 adjusted earnings are now expected to be about flat y/y due to higher fuel/logistics, certain commodity cost pressure, and targeted ambient inventory rebalancing that will depress Q3 plant utilization but position operations more efficiently going forward. Management believes results trend toward the upper half of the guidance range but is maintaining the current outlook to reflect near-term dynamics.