10-Q · May 28, 2026
Hormel Foods reported a solid performance in Q2 FY2026, with net sales of $2.97 billion, a 3% year-over-year increase, though diluted EPS of $0.29 missed expectations of $0.35, reflecting a 12% decline from the previous…
Earnings analysis · 10-Q
HRL earnings analysis
Filed August 27, 2026 · Our reading of the company's report
The latest report
Third-quarter revenue of $2.961 billion declined 0.3% sequentially and 2.3% year over year, while GAAP diluted EPS fell to $0.11 from $0.29 in the prior quarter and $0.33 a year earlier. Adjusted EPS of $0.37 increased…
Read full summary
Third-quarter revenue of $2.961 billion declined 0.3% sequentially and 2.3% year over year, while GAAP diluted EPS fell to $0.11 from $0.29 in the prior quarter and $0.33 a year earlier. Adjusted EPS of $0.37 increased from $0.35 year over year, tempering the weak GAAP result and supporting a neutral rather than bearish assessment. The provided filing text does not include the income-statement detail needed to calculate margins, segment results, balance-sheet changes, or cash flow.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
What stood out
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Revenue declined sequentially and year over year
Revenue was $2.961 billion, down approximately $9 million, or 0.3%, from $2.970 billion in the prior quarter and down approximately $69 million, or 2.3%, from $3.030 billion in the prior-year quarter.
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GAAP EPS fell sharply
GAAP diluted EPS was $0.11, versus $0.29 in the prior quarter and $0.33 in the prior-year quarter, indicating a sharp decline in reported profitability.
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Adjusted EPS increased
Adjusted EPS was $0.37 versus $0.35 in the prior-year quarter, an increase of $0.02, or approximately 6%, according to the prior earnings disclosure.
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Commodity hedging remains active
The company reported $17.0 million of fair value for cash-flow commodity contracts as of July 26, 2026, reflecting continued use of hedging for grain, lean hogs, natural gas, diesel fuel, and aluminum.
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Transformation implementation continues
Management stated that the Oracle Cloud Solutions transformation is expected to be completed in fiscal 2026; the order-to-cash implementation is the principal internal-control change noted for the quarter.
What to watch
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Commodity price volatility
Commodity exposure remains material: a hypothetical 10% decrease in commodity prices would have reduced the fair value of cash-flow commodity contracts by $32.1 million as of July 26, 2026, although it would also reduce future purchased-commodity costs by a similar amount.
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Interest-rate exposure
Long-term debt had a fair value of $2.5 billion as of July 26, 2026. A hypothetical 10% increase in interest rates would have reduced its fair value by $54.6 million, while a 10% decrease would have increased it by $59.1 million.
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Unhedged foreign-currency exposure
The company had a $0.8 billion net foreign-currency asset position as of July 26, 2026, concentrated in the Chinese yuan, Indonesian rupiah, and Philippine peso, and stated that it does not use market-risk instruments to manage this exposure. The 10-Q also states there were no material changes to the risk factors disclosed in the fiscal 2025 Form 10-K.
Management's outlook
No quantitative outlook was identified in the provided 10-Q text. The previously disclosed fiscal 2026 outlook appeared in the prior 8-K, including revenue of $12.1 billion-$12.2 billion and adjusted EPS of $1.45-$1.51.
Earlier filings 4
10-Q · February 26, 2026
Hormel Foods reported Q1 net sales of $3,027,317 (in thousands), up $38,504 versus the prior year quarter, with operating income rising to $243,697 (in thousands) and diluted EPS of $0.33 versus $0.31 a year ago. The…
10-Q · August 28, 2025
Hormel Foods reported quarterly net sales of $3,032,876 (thousands) vs $2,898,443 in the prior-year quarter, with diluted EPS of $0.33 (vs $0.32). Gross profit was essentially flat at $487,309 and operating income was…
10-Q · February 27, 2025
Hormel reported essentially flat net sales of $2,988,813,000 for the quarter versus $2,996,911,000 a year ago, while net earnings fell to $170,575,000 (diluted EPS $0.31) from $218,863,000 (diluted EPS $0.40). Gross…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.