Hormel Foods Reports 2.5% Net Sales Increase but 12.5% Drop in Net Earnings for Q2 2026

Hormel Foods Corporation reported its financial results for the second quarter and first six months of fiscal 2026, revealing a net sales increase of 2.5% to $2.97 billion for the quarter, compared to $2.90 billion in the same period last year. For the six months ended April 26, 2026, net sales reached $6.00 billion, up from $5.89 billion in the prior year. However, net earnings attributable to Hormel Foods decreased by 12.5% to $157.5 million for the quarter, and by 3.2% to $339.3 million for the six-month period. Diluted earnings per share also fell to $0.29 from $0.33 year-over-year.

The company experienced significant changes in its operational landscape, particularly due to the divestiture of its whole-bird turkey business, which resulted in a pre-tax loss of $61 million. This transaction, completed on April 24, 2026, included the sale of production facilities and associated assets for $61.2 million. Additionally, Hormel sold 51% of its equity interest in Justin's, LLC, resulting in a pre-tax gain of $23.5 million. These strategic moves reflect Hormel's ongoing efforts to optimize its portfolio and focus on core operations.

Operationally, Hormel reported a decrease in volume of 1.2% for the quarter, with total pounds sold at 987.9 million, while organic volume saw a slight decline of 0.8%. The Retail segment's net sales increased marginally, driven by strong performance in key brands like Jennie-O® and Applegate®, but was offset by a strategic exit from certain non-core products. The Foodservice segment saw a 6.4% increase in net sales, attributed to market-based pricing actions and modest volume growth. The International segment also reported growth, particularly in exports and the Chinese market.

Looking ahead, Hormel anticipates continued net sales growth across various categories, supported by increased brand investments and market-based pricing strategies. However, the company acknowledges potential risks, including fluctuating consumer demand and commodity prices, which could impact future performance. Hormel's management remains focused on navigating the dynamic external environment while executing its strategic initiatives, including the Transform and Modernize program aimed at enhancing operational efficiencies.