Hormel Foods (NYSE:HRL) Announces Earnings Results

28 Feb 2026, 16:40 by Michael Walen · The Markets Daily

Hormel Foods (NYSE:HRL – Get Free Report) announced its earnings results on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.02, FiscalAI reports. The business had revenue of $3.03 billion during the quarter, compared to analysts’ expectations of $3.07 billion. Hormel Foods had a net margin of 4.03% and a return on equity of 9.36%. The firm’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same quarter last year, the company posted $0.35 EPS. Hormel Foods updated its FY 2026 guidance to 1.430-1.510 EPS.

Here are the key takeaways from Hormel Foods’ conference call:

Hormel reported Q1 organic net sales growth of 2% (fifth consecutive quarter) and adjusted diluted EPS of $0.34, and reaffirmed full‑year guidance of organic sales +1–4% and adjusted EPS of $1.43–$1.51, with Q2 EPS expected flat to slightly up.
Foodservice and International delivered high single‑digit organic net sales and strong segment profit growth, while Retail declined due to the strategic exit of non‑core private‑label snack nuts and timing of pricing actions, producing mixed segment results.
Hormel agreed to sell its whole‑bird (hen) turkey operations to Life‑Science Innovations to reduce exposure to volatile, low‑margin commodity sales while retaining Jennie‑O value‑added products; the transaction is expected to close by end of Q2 and reduce FY26 net sales by roughly $50M (larger impact in 2027).
Elevated input costs (notably beef and pork trim — pork trim up ~12% YoY) and unexpected logistics/freight cost increases from severe winter weather materially pressured gross profit and margins in Q1.
Management expects savings from its restructuring and Transform & Modernize initiatives (plus a second wave of retail pricing) to begin flowing in Q2, supporting sequential margin improvement and productivity gains.

Hormel Foods Stock Performance

HRL stock traded up $0.82 during midday trading on Friday, reaching $25.64. 6,207,467 shares of the company were exchanged, compared to its average volume of 5,153,905. Hormel Foods has a one year low of $21.03 and a one year high of $32.07. The firm has a market capitalization of $14.11 billion, a price-to-earnings ratio of 28.81, a price-to-earnings-growth ratio of 2.50 and a beta of 0.33. The business has a 50-day moving average price of $24.24 and a two-hundred day moving average price of $24.34. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.47 and a quick ratio of 1.20.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Bank of America lifted their price target on Hormel Foods from $25.00 to $26.00 and gave the company a “neutral” rating in a research note on Friday, December 5th. Stephens upped their price target on Hormel Foods from $25.00 to $27.00 and gave the stock an “equal weight” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price objective on shares of Hormel Foods from $27.00 to $28.00 and gave the company an “overweight” rating in a report on Friday, December 5th. Wall Street Zen upgraded shares of Hormel Foods from a “sell” rating to a “hold” rating in a report on Saturday, January 17th. Finally, Barclays set a $30.00 target price on shares of Hormel Foods and gave the company an “overweight” rating in a research report on Tuesday, December 9th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Hormel Foods currently has a consensus rating of “Hold” and an average target price of $27.71.

View Our Latest Stock Analysis on Hormel Foods

Key Stories Impacting Hormel Foods

Here are the key news stories impacting Hormel Foods this week:

Positive Sentiment: Q1 beat on the bottom line — adjusted EPS $0.34 topped the $0.32 consensus while total sales rose ~1.3% year-over-year, supporting the view that profitability actions are working. Hormel Foods Q1 Earnings Beat Estimates
Positive Sentiment: Zacks upgraded HRL to a Rank #2 (Buy), citing improved earnings prospects — that upgrade is a clear positive near-term catalyst. Hormel (HRL) Upgraded to Buy
Positive Sentiment: Stephens raised its price target to $27 (from $25) while keeping an Equal Weight rating — the higher target provides incremental analyst support. Stephens raises price target
Positive Sentiment: Company communications and press coverage suggest the multi-pronged turnaround (portfolio reshaping, margin actions) is gaining traction, which helps investor sentiment. HORMEL FOODS REPORTS FIRST-QUARTER FISCAL 2026 RESULTS
Neutral Sentiment: FY‑2026 EPS guidance was set to $1.43–$1.51 (consensus ~ $1.46) — guidance narrows expectations but is roughly in line with Street estimates, so it’s not a clear tailwind or headwind. Hormel (HRL) Reports Q1 Earnings: What Key Metrics Have to Say
Neutral Sentiment: Performance was mixed by channel — strong Foodservice and International sales offset significant retail weakness, making the top‑line outlook uneven. Hormel Mixed Q1: Retail Weakness Weigh On Strong Foodservice, International Sales
Negative Sentiment: Retail demand softness drove a quarterly sales miss versus estimates and declining volumes, a durable risk if consumer downtrading continues. Hormel misses quarterly sales estimates on weak retail demand
Negative Sentiment: Some analysts/commentary note weaker relative total returns over recent years and question the valuation and long-term growth profile despite dividend‑king status — a caution for value-focused investors. Hormel: Hope Feels Canned Like The Ham

Institutional Investors Weigh In On Hormel Foods

A number of institutional investors have recently modified their holdings of the business. Banco Bilbao Vizcaya Argentaria S.A. acquired a new stake in shares of Hormel Foods during the third quarter valued at about $211,000. EverSource Wealth Advisors LLC boosted its position in Hormel Foods by 214.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,731 shares of the company’s stock worth $143,000 after buying an additional 3,226 shares during the period. Quadrant Capital Group LLC acquired a new stake in Hormel Foods during the 3rd quarter worth approximately $73,000. UMB Bank n.a. raised its stake in shares of Hormel Foods by 172.2% during the fourth quarter. UMB Bank n.a. now owns 3,100 shares of the company’s stock valued at $73,000 after acquiring an additional 1,961 shares during the last quarter. Finally, Banque Cantonale Vaudoise acquired a new position in shares of Hormel Foods during the third quarter worth $64,000. Institutional investors own 40.99% of the company’s stock.

Hormel Foods Company Profile

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Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.