TLDR
- Hormel cut its fiscal 2026 net sales forecast to $12.1B-$12.2B, down from $12.2B-$12.5B
- Q3 revenue fell 2.4% to $2.96B, missing analyst estimates of $3.04B
- Retail segment sales dropped 4%, with volumes falling 9%
- Lower prices for commodity turkey and private-label snack nuts were key drivers of the miss
- HRL stock fell 9.1% to $21.57 on Thursday
Hormel Foods (HRL) stock fell 9.1% to $21.57 on Thursday after the company cut its annual sales forecast and reported a third-quarter revenue miss.
The company now expects fiscal 2026 net sales of $12.1 billion to $12.2 billion. That is down from its prior forecast of $12.2 billion to $12.5 billion.
Q3 revenue came in at $2.96 billion, a 2.4% decline year over year and below analyst estimates of $3.04 billion. Adjusted earnings per share came in at 37 cents, beating the 35-cent estimate.
$HRL (Hormel Foods) Q3 FY26 Earnings
GAAP messy…
adjusted guide goes up anyway 👀
📊 KEY METRICS (Q3 FY26)
🔹 Net Sales: $2.96B (vs $3.03B; organic −2%) 🔴
🔹 Operating Income: $111M | Margin 3.7% 🔴
🔹 Adj. Operating Income: $266M | Margin 9.0%
🔹 Diluted EPS:…— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 27, 2026
CEO-elect John Ghingo pointed to portfolio changes, lower commodity pricing, and a tough consumer backdrop as the reasons behind the results.
“The results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure,” Ghingo said.
Retail Segment Drags on Results
The retail segment, which is Hormel’s biggest revenue driver, saw sales fall 4% and volumes drop 9% during the quarter. Weakness in turkey commodity prices and private-label snack nuts were the main culprits.
Consumer demand across packaged food has stayed soft. Higher living costs have kept wallets tight, and Hormel is not immune to that pressure.
During the quarter, Hormel completed the sale of its Brazilian CERATTI business, a move aimed at focusing on higher-growth markets.
Guidance and Analyst Reaction
On the earnings side, Hormel raised its full-year adjusted EPS forecast to $1.45-$1.51, up from a prior range of $1.43-$1.51. That is the one bright spot in an otherwise cautious update.
The organic sales growth expectation was also narrowed to 1%-2%, compared with 1%-4% previously. Not a lot of wiggle room there.
Oppenheimer analysts called the quarter a mixed bag. They expect the stock to trade lower but said they will watch whether Hormel can return to its long-term targets of 2%-3% net sales growth and 5%-7% operating profit growth.
Earlier this week, Hormel named former Tyson Foods executive Ash Bhumbla as CFO, effective September. Ghingo was appointed CEO last month.
HRL closed Thursday at $21.57, down 9.1% on the session.
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