{"success":true,"data":{"pressRelease":{"id":"129033","rtpr_id":"nPn1PgGHFa","ticker":"HRL","exchange":"NYSE","all_tickers":["HRL"],"title":"HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS","author":"PR Newswire","published_at":"2026-08-27T10:30:01.138Z","article_body":"HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS\n\nPR Newswire\n\nAUSTIN, Minn., Aug. 27, 2026\n\nCompany Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third\nQuarter and Strong Year-to-Date Performance\n\nAUSTIN, Minn., Aug. 27, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE:\nHRL), a Fortune 500 global branded food company, today reported results for\nthe third quarter of fiscal 2026, which ended July 26, 2026. All comparisons\nare to the comparable period of fiscal 2025, unless otherwise noted.\n\nEXECUTIVE SUMMARY — THIRD QUARTER\n\n * Net sales of $2.96 billion; organic net sales(1) down 2%\n * Operating income of $111 million; adjusted operating income(1) of $266\nmillion\n * Operating margin of 3.7%; adjusted operating margin(1 )of 9.0%\n * Earnings before income taxes of $103 million; adjusted earnings before income\ntaxes(1) of $258 million\n * Diluted earnings per share of $0.11; adjusted diluted earnings per\nshare(1) of $0.37\n * Cash flow from operations of $241 million\nEXECUTIVE COMMENTARY\n\n\"We delivered solid third quarter results, growing our adjusted earnings and\ncontinuing to advance our fiscal 2026 objectives,\" said Jeff Ettinger, interim\nchief executive officer. \"With our strong year-to-date performance and\ncontinued opportunities ahead, we are raising and narrowing our adjusted\nearnings outlook for fiscal 2026 and remain confident in delivering adjusted\nearnings growth for the year consistent with, or above, our long-term\nalgorithm.\"\n\n\"We continued to make progress against our strategic priorities during the\nquarter,\" said John Ghingo, president and chief executive officer-elect.\n\"While net sales declined, the results reflected the impacts of\nportfolio-shaping actions, lower commodity-based pricing in portions of the\nbusiness and a consumer environment that remains under pressure. At the same\ntime, several of our Retail priority brands delivered growth, and Foodservice\nonce again outperformed industry trends, supported by the strength of our\nsolutions-based offerings and operator partnerships. As we continue to enhance\nour capabilities and sharpen our focus, we remain committed to disciplined\nexecution and positioning the company for long-term success.\"\n\nFULL YEAR FISCAL 2026 GUIDANCE\n\nFor fiscal 2026, the Company:\n\n * Expects net sales to be in the range of $12.1 billion to $12.2 billion,\nreflecting organic net sales(1) growth of 1% to 2%\n * Updates operating income guidance to be in the range of $0.83 billion to $0.87\nbillion, which includes the estimated loss related to the Brazil divestiture,\na non-cash impairment charge related to a minority investment in Indonesia,\nand a litigation settlement\n * Raises adjusted operating income(1) guidance to be in the range of $1.08\nbillion to $1.12 billion, reflecting growth of 6% to 10%\n * Updates diluted earnings per share guidance to be in the range of $1.06 to\n$1.12\n * Raises adjusted diluted earnings per share(1) guidance to be in the range of\n$1.45 to $1.51, reflecting growth of 6% to 10%                                     Updated                Previous\n Net Sales                           $12.1 - $12.2 billion  $12.2 - $12.5 billion\n Organic Net Sales(1) Growth Rate    1% - 2%                1% - 4%\n Diluted Earnings per Share          $1.06 - $1.12          $1.28 - $1.37\n Adj. Diluted Earnings per Share(1)  $1.45 - $1.51          $1.43 - $1.51\n\nPORTFOLIO SHAPING\n\nDuring the third quarter of fiscal 2026, the Company announced a definitive\nagreement to sell its Brazil operations, operated under the\nCeratti(®) brand, and classified the business as held for sale. The\ndivestiture reflects the Company's ongoing efforts to simplify and streamline\nits portfolio and focus its international strategy on markets with the\nstrongest long-term growth opportunities.\n\nThe transaction successfully closed in the early part of the fourth quarter of\nfiscal 2026. The expected impacts of the divestiture are reflected in the\nCompany's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter\nof fiscal 2026, the impact of the divestiture will be excluded from\nyear-over-year comparisons in the Company's non-GAAP organic volume¹ and\norganic net sales¹ metrics.\n\nSEGMENT HIGHLIGHTS – THIRD QUARTER\n\nRetail\n\n * Volume down 9%; organic volume(1) down 9%\n * Net sales down 4%; organic net sales(1) down 3%\n * Segment profit down 4%\nOrganic net sales(1) decreased in the third quarter of fiscal 2026, as\ndeclines in commodity turkey and private label snack nuts were partially\noffset by strong performance in value-added turkey offerings, contract\nmanufacturing and Planters(®) snack nuts. Additional priority brands that\ndelivered solid growth during the quarter include the SPAM(® )family of\nproducts, Applegate(®) natural and organic meats, and Hormel(®) chili.\nSegment profit decreased for the third quarter of fiscal 2026, as lower net\nsales and higher logistics expenses were partially offset by lower selling,\ngeneral and administrative expenses.\n\nFoodservice\n\n * Volume down 1%; organic volume(1 )down 1%\n * Net sales up 2%; organic net sales(1) up 2%\n * Segment profit up 3%\nThe third quarter of fiscal 2026 marked the 12(th) consecutive quarter of\norganic net sales(1) growth for the Foodservice segment. Organic net sales¹\ngrowth was broad-based despite the impact of lower commodity-based pricing in\nportions of the portfolio. Growth was driven by multiple product groups and\ncategories, led by significant contributions from premium prepared proteins,\nbranded pepperoni and Jennie-O(®) turkey. Additional branded products,\nincluding Austin Blues(®) smoked meats, Hormel(®) Natural Choice(®) meats\nand Hormel(®) Fire Braised™ meats, also delivered strong net sales\nresults. Segment profit increased for the third quarter of fiscal 2026, as\nhigher net sales and favorable pork input costs were partially offset by\nhigher logistics and selling, general and administrative expenses.\n\nInternational\n\n * Volume down 11%; organic volume(1) down 11%\n * Net sales down 5%; organic net sales(1) down 4%\n * Segment profit down 254%; adjusted segment profit(1 )flat\nFor the International segment, organic net sales¹ declined in the third\nquarter of fiscal 2026. While branded export demand remained resilient during\nthe quarter, the recognition of certain SPAM(®) export sales was adversely\nimpacted due to a one-time legal-entity transition. Segment profit was\nsignificantly impacted by a non-cash impairment charge. Adjusted segment\nprofit(1) was comparable to the prior year, as minority investment\nperformance offset weaker results in Brazil.\n\nADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026\n\nIncome Statement\n\n * Operating margin and adjusted operating margin(1) were 3.7% and 9.0%,\nrespectively, compared to 7.9% and 8.4%, respectively, in the prior year.\n * Selling, general and administrative expenses as a percent of net sales and\nadjusted selling, general and administrative expenses as a percent of net\nsales(1) were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%,\nrespectively, in the prior year.\n * Advertising investments were $34 million, compared to $41 million last year.\n * Significant discrete pre-tax items included: a loss of $56 million related to\nthe Brazil divestiture, a non-cash impairment charge related to a minority\ninvestment in Indonesia of $48 million and a litigation settlement of $38\nmillion.\n * The effective tax rate was 42.3%, compared to 22.3% last year, and was\nsignificantly impacted by one-time items.\nCash Flow Statement\n\n * Cash flow from operations was $241 million, an increase of 54% compared to\nthe prior year.\n * Capital expenditures were $68 million, compared to $72 million last year.\nThe largest projects in the third quarter of fiscal 2026 were related to\ninfrastructure enhancements and investments in data and technology.\n * Depreciation and amortization expense was $66 million, compared to $65 million\nlast year.\n * The Company returned $161 million to stockholders during the quarter through\ndividends.\nBalance Sheet\n\n * The Company remained in a strong financial position at quarter end, with ample\nliquidity and a conservative level of debt.\n * Cash on hand, excluding assets held for sale, was $840 million at quarter\nend, an increase of $169 million from the end of fiscal 2025.\n * Inventories were $1.8 billion at quarter end, an increase of $54 million\nfrom the end of fiscal 2025.\nPRESENTATION\nA conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is\navailable at hormelfoods.com by clicking on \"Investors.\" The call will also be\navailable via telephone by dialing 833-461-5787 (toll free) or 585-542-9983\n(international) and providing the conference ID 915 330 197. An audio replay\nis available at hormelfoods.com. The webcast replay will be available at noon\nCT, Aug. 27, 2026, and will remain on the website for one year.\n\nABOUT HORMEL FOODS\nHormel Foods Corporation, based in Austin, Minnesota, is a global branded food\ncompany with over $12 billion in annual revenue. Its brands include\nPlanters(®), Skippy(®), SPAM(®), Hormel(®) Natural Choice(®),\nApplegate(®), Wholly(®), Hormel(®) Black Label(®), Columbus(®),\nJennie-O(®) and more than 30 other beloved brands. The Company is a member\nof the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named\none of the best companies to work for by U.S. News & World Report and one\nof America's most responsible companies by Newsweek, was recognized by TIME\nmagazine as one of the World's Best Companies and has received numerous other\nawards and accolades for its corporate responsibility and community service\nefforts. For more information, visit hormelfoods.com.\n\nFORWARD-LOOKING STATEMENTS\nThis news release contains forward-looking statements, which are based on the\nCompany's current assumptions and expectations. These statements are typically\naccompanied by the words \"aim,\" \"anticipate,\" \"believe,\" \"could,\" \"estimate,\"\n\"expect,\" \"intend,\" \"may,\" \"might,\" \"plan,\" \"project,\" \"seek,\" \"target,\"\n\"will,\" \"would,\" or similar words or expressions. The principal\nforward-looking statements in this news release include statements regarding\nthe Company's fiscal 2026 guidance and future financial and operational\nperformance.\n\nAll such forward-looking statements are intended to enjoy the protection of\nthe safe harbor for forward-looking statements contained in the Private\nSecurities Litigation Reform Act of 1995, as amended. Although the Company\nbelieves there is a reasonable basis for the forward-looking statements, its\nactual results could be materially different. The most important factors that\ncould cause the Company's actual results to differ from its forward-looking\nstatements include, but are not limited to, risks related to the deterioration\nof economic conditions; risks related to acquisitions, joint ventures, equity\ninvestments, and divestitures; risks and uncertainties associated with\nintangible assets, including any future goodwill or intangible assets\nimpairment charges; the risk of disruption of operations; the risk that the\nCompany may fail to realize anticipated cost savings or operating profit\nimprovements associated with strategic initiatives, including the Transform\nand Modernize initiative and the Company's recent corporate restructuring\nplan; risk of unfavorable changes in the Company's relationships with third\nparties; risk of the Company's inability to protect information technology\n(IT) systems against, or effectively respond to, cyberattacks, security\nbreaches or other IT interruptions; labor relations and labor availability\nrisks; food safety risks; fluctuations in commodity prices and availability of\nraw materials and other inputs; fluctuations in market demand for the\nCompany's products; risks related to the Company's ability to respond to\nchanging consumer preferences; damage to the Company's reputation or brand\nimage; risks of litigation; risks associated with government regulation; risks\nrelated to trade policies, export and import controls, and tariffs; and the\nother risks and uncertainties described in Item 1A – Risk Factors of the\nCompany's most recent Annual Report on Form 10-K and Quarterly Reports on Form\n10-Q, which can be accessed at hormelfoods.com in the \"Investors\" section.\nThough the Company has attempted to list comprehensively these important\ncautionary risk factors, the Company cautions that other factors may in the\nfuture prove to be important in affecting the Company's business or results of\noperations. Forward-looking statements speak only as of the date they are\nmade, and the Company does not undertake any obligation to update any\nforward-looking statement except as otherwise required by law.\n\nNote: Due to rounding, numbers presented throughout this press release may\nnot sum precisely to the totals provided, and percentages may not precisely\nreflect the absolute figures.\n\nReclassifications: Certain prior year amounts have been reclassified to\nconform to the current year presentation.\n\nEND NOTES\n\n 1. Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for\nmore information.\nINVESTOR CONTACT\nJess Blomberg\nir@hormel.com (mailto:ir@hormel.com)\n\nMEDIA CONTACT\nLaura Cederberg\nmedia@hormel.com (mailto:media@hormel.com)\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED STATEMENTS OF OPERATIONS\n In thousands, except per share amounts\n Unaudited\n\n                                            Quarter Ended                                              Nine Months Ended\n                                            July 26, 2026                   July 27, 2025              July 26, 2026                    July 27, 2025\n Net Sales                                  $ 2,961,333                     $ 3,032,876                $ 8,961,250                      $ 8,920,499\n Cost of Products Sold                      2,489,818                       2,545,567                  7,501,653                        7,473,524\n Gross Profit                               471,515                         487,309                    1,459,597                        1,446,975\n Selling, General, and Administrative       323,501                         258,713                    883,822                          773,158\n Equity in Earnings of Affiliates           (37,110)                        11,153                     (4,061)                          42,614\n Operating Income                           110,904                         239,748                    571,713                          716,430\n Interest Income                            6,661                           4,877                      19,667                           18,596\n Interest Expense                           19,635                          19,461                     59,185                           58,438\n Other Income (Expense), Net                5,227                           11,350                     11,336                           8,488\n Earnings Before Income Taxes               103,157                         236,514                    543,531                          685,076\n Provision for Income Taxes                 43,638                          52,818                     144,865                          151,107\n Effective Tax Rate                         42.3 %                          22.3 %                     26.7 %                           22.1 %\n Net Earnings                               59,519                          183,696                    398,666                          533,968\n Less: Net Earnings (Loss) Attributable     (55)                            (46)                       (182)                            (366)\n    to Noncontrolling Interest\n Net Earnings Attributable to Hormel        $     59,573                    $   183,742                $   398,848                      $   534,334\n Foods Corporation\n\n Net Earnings Per Share:\n Basic                                      $         0.11                  $         0.33             $         0.72                   $         0.97\n Diluted                                    $         0.11                  $         0.33             $         0.72                   $         0.97\n\n Weighted-average Shares\n Outstanding:\n Basic                                      550,675                         550,408                    550,572                          550,048\n Diluted                                    551,074                         550,723                    550,898                          550,396\n\n Dividends Declared Per Share               $     0.2925                    $     0.2900               $     0.8775                     $     0.8700\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION\n In thousands\n Unaudited\n\n                                                   July 26, 2026                           October 26, 2025\n Assets\n Cash and Cash Equivalents                         $              839,639                  $              670,679\n Short-term Marketable Securities                  28,807                                  32,909\n Accounts and Other Receivables, Net               733,460                                 813,989\n Inventories                                       1,801,567                               1,747,279\n Taxes Receivable                                  58,688                                  96,791\n Prepaid Expenses and Other Current Assets         53,420                                  44,010\n Assets Held for Sale                              10,659                                  —\n Total Current Assets                              3,526,238                               3,405,656\n\n Goodwill                                          4,867,763                               4,924,087\n Intangible Assets                                 1,572,850                               1,647,297\n Pension Assets                                    204,135                                 211,826\n Investments in Affiliates                         527,864                                 533,984\n Other Assets                                      430,139                                 431,500\n Property, Plant, and Equipment, Net               2,163,025                               2,238,770\n Total Assets                                      $         13,292,014                    $         13,393,119\n\n Liabilities and Shareholders' Investment\n Accounts Payable & Accrued Expenses               $              771,154                  $              787,350\n Accrued Marketing Expenses                        133,313                                 113,947\n Employee-related Expenses                         250,072                                 273,402\n Interest and Dividends Payable                    175,646                                 180,700\n Taxes Payable                                     10,690                                  18,752\n Current Maturities of Long-term Debt              505,634                                 6,646\n Liabilities Held for Sale                         27,483                                  —\n Total Current Liabilities                         1,873,991                               1,380,796\n\n Long-term Debt Less Current Maturities            2,349,489                               2,850,778\n Pension and Postretirement Benefits               351,174                                 358,984\n Deferred Income Taxes                             653,360                                 661,349\n Other Long-term Liabilities                       204,345                                 225,397\n Accumulated Other Comprehensive Loss              (236,907)                               (243,646)\n Other Shareholders' Investment                    8,096,561                               8,159,461\n Total Liabilities and Shareholders' Investment    $         13,292,014                    $         13,393,119\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS\n In thousands\n Unaudited\n\n                                                                Quarter Ended                                           Nine Months Ended\n                                                                July 26, 2026                   July 27, 2025           July 26, 2026                 July 27, 2025\n Operating Activities\n Net Earnings                                                   $        59,519                 $      183,696          $      398,666                $      533,968\n Depreciation and Amortization                                  66,427                          64,692                  202,348                       194,527\n Equity in Earnings of Affiliates                               37,110                          (11,153)                4,061                         (42,614)\n Loss (Gain) on Divestitures                                    57,379                          —                       94,085                        10,800\n Decrease (Increase) in Working Capital, Net of Divestitures    (2,174)                         (95,844)                111                           (255,011)\n Other                                                          22,339                          15,307                  69,481                        80,674\n Net Cash Provided by (Used in)                                 240,599                         156,698                 768,752                       522,345\n    Operating Activities\n\n Investing Activities\n Net Sale (Purchase) of Securities                              3,498                           (1,434)                 3,372                         (6,170)\n Proceeds from Sale of Business                                 (2,979)                         —                       97,056                        13,139\n Purchases of Property, Plant, and                              (68,163)                        (72,194)                (219,331)                     (219,444)\n    Equipment\n Proceeds from (Purchases of) Affiliates                        —                               (584)                   (5,316)                       (3,283)\n    and Other Investments\n Other                                                          6,119                           7,890                   11,952                        10,767\n Net Cash Provided by (Used in)                                 (61,526)                        (66,323)                (112,267)                     (204,991)\n    Investing Activities\n\n Financing Activities\n Repayments of Long-term Debt and                               (1,773)                         (2,005)                 (5,425)                       (6,250)\n    Finance Leases\n Dividends Paid on Common Stock                                 (160,963)                       (159,467)               (481,401)                     (473,692)\n Other                                                          (283)                           (1,784)                 (1,609)                       24,057\n Net Cash Provided by (Used in)                                 (163,019)                       (163,256)               (488,435)                     (455,884)\n    Financing Activities\n Effect of Exchange Rate Changes on                             1,291                           2,381                   5,368                         (4,161)\n    Cash\n Increase (Decrease) in Cash, Cash                              17,345                          (70,499)                173,417                       (142,692)\n    Equivalents, and Cash Held for Sale\n Cash, Cash Equivalents, and Cash Held                          826,750                         669,688                 670,679                       741,881\n    for Sale at Beginning of Period\n Cash, Cash Equivalents, and Cash Held                          844,095                         599,189                 844,095                       599,189\n    for Sale at End of Period\n Less: Cash Held for Sale                                       4,457                           —                       4,457                         —\n Cash and Cash Equivalents at End of                            $      839,639                  $      599,189          $      839,639                $      599,189\n Period\n\n \n HORMEL FOODS CORPORATION\n SEGMENT DATA\n In thousands\n Unaudited\n\n                            Quarter Ended                                            Nine Months Ended\n                            July 26,               July 27,               %          July 26,                July 27,                %\n                            2026                   2025                   Change     2026                    2025                    Change\n Volume (lbs.)\n Retail                     648,340                712,912                (9.1)      2,005,233               2,127,075               (5.7)\n Foodservice                244,830                248,540                (1.5)      733,557                 734,988                 (0.2)\n International              75,908                 85,138                 (10.8)     231,905                 239,225                 (3.1)\n Total Volume (lbs.)        969,078                1,046,590              (7.4)      2,970,695               3,101,288               (4.2)\n\n Net Sales\n Retail                     $ 1,779,434            $ 1,858,434            (4.3)      $ 5,416,905             $ 5,532,401             (2.1)\n Foodservice                1,003,158              986,976                1.6        2,998,096               2,853,603               5.1\n International              178,740                187,466                (4.7)      546,249                 534,495                 2.2\n Total Net Sales            $ 2,961,333            $ 3,032,876            (2.4)      $ 8,961,250             $ 8,920,499             0.5\n\n Segment Profit\n Retail                     $    118,073           $    122,566           (3.7)      $    369,902            $    378,847            (2.4)\n Foodservice                144,475                140,711                2.7        456,800                 420,170                 8.7\n International              (29,233)               18,941                 (254.3)    15,812                  58,193                  (72.8)\n Total Segment Profit       233,316                282,218                (17.3)     842,515                 857,210                 (1.7)\n Net Unallocated Expense    130,104                45,658                 185.0      298,802                 171,769                 74.0\n Noncontrolling Interest    (55)                   (46)                   (20.4)     (182)                   (366)                   50.2\n Earnings Before            $   103,157            $   236,514            (56.4)     $   543,531             $   685,076             (20.7)\n Income Taxes\n\n \n\nAPPENDIX: NON-GAAP MEASURES\nThis press release includes measures of financial performance that are not\ndefined by U.S. generally accepted accounting principles (GAAP). The Company\nutilizes these non-GAAP measures to understand and evaluate operating\nperformance on a consistent basis. These measures may also be used when making\ndecisions regarding resource allocation and in determining incentive\ncompensation. The Company believes these non-GAAP measures provide useful\ninformation to investors because they aid analysis and understanding of the\nCompany's results and business trends relative to past performance and the\nCompany's competitors. Non-GAAP measures are not intended to be a substitute\nfor GAAP measures in analyzing financial performance. These non-GAAP measures\nare not calculated in accordance with GAAP and may be different from non-GAAP\nmeasures used by other companies.\n\nTransform and Modernize (T&M) Initiative\nIn the fourth quarter of fiscal 2023, the Company announced a multi-year\nT&M initiative. In presenting non-GAAP measures, the Company adjusts for\n(i.e., excludes) expenses for this initiative that are nonrecurring, which are\nprimarily project-based external consulting fees and expenses related to\nsupply chain and portfolio optimization (e.g., asset write-offs, severance, or\nrelocation-related costs). The Company believes that nonrecurring costs\nassociated with the T&M initiative are not reflective of the Company's\nongoing operating cost structure; therefore, the Company is excluding these\ndiscrete costs. The Company does not adjust for (i.e., does not exclude)\ncertain costs related to the T&M initiative that are expected to continue\nafter the project ends, such as software license fees and internal employee\nexpenses, because those costs are considered ongoing in nature as a component\nof normal operating costs. The Company also does not adjust for savings\nrealized through the T&M initiative as these are considered ongoing in\nnature and reflective of expected future operating performance.\n\nGain or Loss on Divestitures\nAs part of its ongoing portfolio management activities, the Company may\nperiodically divest certain businesses to better align its portfolio with its\nstrategic objectives and long-term growth strategy. The Company believes the\none-time impacts from these transactions, including transaction costs, are not\nreflective of the Company's ongoing operating cost structure, are not\nindicative of the Company's core operating performance, and are not meaningful\nwhen comparing the Company's operating performance against that of prior\nperiods. Thus, the Company has adjusted for (i.e., excluded) these impacts.\nTransactions affecting comparability include the Brazil transaction, the\nwhole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain\nPrairie, LLC divestiture.\n\nCorporate Restructuring Plan\nIn the fourth quarter of fiscal 2025, the Company commenced a corporate\nrestructuring plan, the focus of which is to reduce administrative expenses,\nimprove efficiencies, and align the workforce to the Company's future needs,\nwhile enabling continued investment in the Company's growth. The costs\nincurred to execute the corporate restructuring plan and the charges incurred\nunder the program are primarily related to severance and employee benefit\ncosts. Because the Company believes certain charges incurred under the\ncorporate restructuring plan do not reflect future operating costs and are not\nmeaningful when comparing the Company's operating performance against that of\nprior periods, the Company adjusts for (i.e., excludes) these impacts.\n\nConsulting Agreement\nOn October 27, 2025, the Company entered into a consulting agreement\n(Consulting Agreement) with its former Chief Executive Officer (CEO), pursuant\nto which the former CEO is expected to provide consulting services to the\nCompany until April 2027. Consulting costs related to the Consulting Agreement\ninclude cash and share-based compensation, which were primarily recognized in\nthe first quarter of fiscal 2026. The Company believes nonrecurring costs\nassociated with the Consulting Agreement are not reflective of the Company's\nongoing operating cost structure, are not indicative of the Company's core\noperating performance, and are not meaningful when comparing the Company's\noperating performance against that of prior periods; therefore, the Company is\nexcluding these discrete costs.\n\nLegal Matters\nFrom time to time, the Company receives proceeds or incurs expenses related to\ndiscrete legal matters that the Company believes are not indicative of the\nCompany's core operating performance, do not reflect expected future operating\nincome or costs, and are not meaningful when comparing the Company's operating\nperformance against that of prior periods. The Company adjusts for (i.e.,\nexcludes) these impacts.\n\nLitigation Settlements\nIn the third quarter of fiscal 2026, the Company executed a settlement\nagreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the\nCompany entered into a settlement agreement with certain plaintiffs in an\nantitrust lawsuit.\n\nImpairments\nIn the third quarter of fiscal 2026, the Company recorded a non-cash\nimpairment charge related to a minority investment in Indonesia. The Company\nbelieves these charges are not indicative of the Company's core operating\nperformance, do not reflect expected future operating income or costs, and are\nnot meaningful when comparing the Company's operating performance against that\nof prior periods. Thus, the Company has adjusted for (i.e., excluded) these\nimpacts.\n\nThe tables below show the calculations to reconcile from the GAAP measures to\nthe non-GAAP measures presented in this press release. The tax provision\nexpense or benefit of each of the pre-tax items excluded from the Company's\nGAAP results was computed based on the facts and tax implications associated\nwith each item.\n\n \n HORMEL FOODS CORPORATION\n RECONCILIATION OF NON-GAAP MEASURES\n Unaudited\n                                                         Quarter Ended                                                  Nine Months Ended\n In thousands, except per share amounts                  July 26, 2026                       July 27, 2025              July 26, 2026                  July 27, 2025\n Cost of Products Sold (GAAP)                            $ 2,489,818                         $ 2,545,567                $ 7,501,653                    $ 7,473,524\n Transform and Modernize Initiative((1))                 (447)                               (1,010)                    (2,222)                        (3,973)\n Adjusted Cost of Products Sold (Non-GAAP)               $ 2,489,371                         $ 2,544,557                $ 7,499,431                    $ 7,469,551\n\n SG&A (GAAP)                                             $    323,501                        $    258,713               $   883,822                    $   773,158\n Transform and Modernize Initiative((2))                 (11,792)                            (13,485)                   (36,448)                       (41,228)\n Gain (Loss) on Divestitures                             (57,379)                            —                          (94,911)                       (11,324)\n Corporate Restructuring Plan                            26                                  —                          (8,505)                        —\n Consulting Agreement                                    —                                   —                          (7,775)                        —\n Litigation Settlements                                  (37,500)                            —                          (37,500)                       (240)\n Adjusted SG&A (Non-GAAP)                                $    216,856                        $    245,228               $   698,684                    $   720,366\n\n Equity in Earnings of Affiliates (GAAP)                 $    (37,110)                       $     11,153               $     (4,061)                  $     42,614\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Equity in Earnings of Affiliates (Non-         $     11,109                        $     11,153               $     44,157                   $     42,614\n GAAP)\n\n Operating Income (GAAP)                                 $    110,904                        $    239,748               $   571,713                    $   716,430\n Transform and Modernize Initiative((1)(2))              12,239                              14,496                     38,669                         45,202\n (Gain) Loss on Divestitures                             57,379                              —                          94,911                         11,324\n Corporate Restructuring Plan                            (26)                                —                          8,505                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  37,500                              —                          37,500                         240\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Operating Income (Non-GAAP)                    $    266,215                        $    254,244               $   807,292                    $   773,196\n\n Earnings Before Income Taxes (GAAP)                     $    103,157                        $    236,514               $   543,531                    $   685,076\n Transform and Modernize Initiative((1)(2))              12,239                              14,496                     38,669                         45,202\n (Gain) Loss on Divestitures                             57,379                              —                          94,911                         11,324\n Corporate Restructuring Plan                            (26)                                —                          8,505                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  37,500                              —                          37,500                         240\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Earnings Before Income Taxes (Non-             $    258,467                        $    251,010               $   779,110                    $   741,842\n GAAP)\n\n Provision for Income Taxes (GAAP)                       $     43,638                        $     52,818               $   144,865                    $   151,107\n Transform and Modernize Initiative((1)(2))              2,999                               3,233                      9,474                          9,960\n (Gain) Loss on Divestitures                             303                                 —                          4,525                          2,469\n Corporate Restructuring Plan                            (6)                                 —                          2,084                          —\n Consulting Agreement                                    —                                   —                          —                              —\n Litigation Settlements                                  9,188                               —                          9,188                          52\n Impairments                                             —                                   —                          —                              —\n Adjusted Provision for Income Taxes (Non-GAAP)          $     56,120                        $     56,051               $   170,136                    $   163,588\n\n Net Earnings Attributable to Hormel Foods               $     59,573                        $    183,742               $   398,848                    $   534,334\n Corporation (GAAP)\n Transform and Modernize Initiative((1)(2))              9,241                               11,263                     29,195                         35,242\n (Gain) Loss on Divestitures                             57,076                              —                          90,386                         8,855\n Corporate Restructuring Plan                            (20)                                —                          6,421                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  28,313                              —                          28,313                         188\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Net Earnings Attributable to Hormel            $    202,402                        $    195,005               $   609,156                    $   578,620\n Foods Corporation (Non-GAAP)\n\n Diluted Earnings Per Share (GAAP)                       $         0.11                      $         0.33             $        0.72                  $        0.97\n Transform and Modernize Initiative((1)(2))              0.02                                0.02                       0.05                           0.06\n (Gain) Loss on Divestitures                             0.10                                —                          0.16                           0.02\n Corporate Restructuring Plan                            —                                   —                          0.01                           —\n Consulting Agreement                                    —                                   —                          0.01                           —\n Litigation Settlements                                  0.05                                —                          0.05                           —\n Impairments                                             0.09                                —                          0.09                           —\n Adjusted Diluted Earnings Per Share (Non-GAAP)          $         0.37                      $         0.35             $        1.11                  $        1.05\n\n SG&A as a Percent of Net Sales (GAAP)                   10.9 %                              8.5 %                      9.9 %                          8.7 %\n Transform and Modernize Initiative((2))                 (0.4)                               (0.4)                      (0.4)                          (0.5)\n Gain (Loss) on Divestitures                             (1.9)                               —                          (1.1)                          (0.1)\n Corporate Restructuring Plan                            —                                   —                          (0.1)                          —\n Consulting Agreement                                    —                                   —                          (0.1)                          —\n Litigation Settlements                                  (1.3)                               —                          (0.4)                          —\n Adjusted SG&A as a Percent of Net Sales (Non-GAAP)      7.3 %                               8.1 %                      7.8 %                          8.1 %\n\n Operating Margin (GAAP)                                 3.7 %                               7.9 %                      6.4 %                          8.0 %\n Transform and Modernize Initiative((1)(2))              0.4                                 0.5                        0.4                            0.5\n (Gain) Loss on Divestitures                             1.9                                 —                          1.1                            0.1\n Corporate Restructuring Plan                            —                                   —                          0.1                            —\n Consulting Agreement                                    —                                   —                          0.1                            —\n Litigation Settlements                                  1.3                                 —                          0.4                            —\n Impairments                                             1.6                                 —                          0.5                            —\n Adjusted Operating Margin (Non-GAAP)                    9.0 %                               8.4 %                      9.0 %                          8.7 %\n\n (1)  Comprised primarily of costs related to supply chain and portfolio\n optimization.\n (2)  Comprised primarily of project-based external consulting fees.\n\n \n\nADJUSTED SEGMENT PROFIT (NON-GAAP)\n                               Quarter Ended\n                               July 26, 2026                                                             July 27, 2025\n In thousands                        GAAP        Non-GAAP Adjustments((1))           Non-GAAP            GAAP        Non-GAAP Adjustments((2))           Non-GAAP\n Segment Profit (Loss)\n Retail                              $ 118,073   $               —                   $   118,073         $ 122,566   $               —                   $   122,566\n Foodservice                         144,475     —                                   144,475             140,711     —                                   140,711\n International                       (29,233)    48,218                              18,985              18,941      —                                   18,941\n Total Segment Profit (Loss)         233,316     48,218                              281,534             282,218     —                                   282,218\n Net Unallocated Expense             130,104     (107,092)                           23,012              45,658      (14,496)                            31,162\n Noncontrolling Interest             (55)        —                                   (55)                (46)        —                                   (46)\n Earnings Before Income Taxes        $ 103,157   $       155,310                     $   258,467         $ 236,514   $         14,496                    $   251,010\n\n (1)  International segment profit (loss) adjustments in the third quarter of fiscal\n      2026 were due to a non-cash impairment charge.\n      Net Unallocated Expense adjustments were comprised of gain (loss) on\n      divestitures, an unfavorable litigation settlement,\n      nonrecurring T&M initiative costs, and corporate restructuring plan\n      charges.\n (2)  Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were\n      comprised of nonrecurring T&M initiative costs.\n\n \n                              Nine Months Ended\n                              July 26, 2026                                                              July 27, 2025\n In thousands                       GAAP        Non-GAAP Adjustments((1))           Non-GAAP             GAAP        Non-GAAP Adjustments((2))           Non-GAAP\n Segment Profit (Loss)\n Retail                             $ 369,902   $               —                   $   369,902          $ 378,847   $               —                   $   378,847\n Foodservice                        456,800     —                                   456,800              420,170     —                                   420,170\n International                      15,812      48,218                              64,031               58,193      —                                   58,193\n Total Segment Profit (Loss)        842,515     48,218                              890,734              857,210     —                                   857,210\n Net Unallocated Expense            298,802     (187,360)                           111,442              171,769     (56,766)                            115,003\n Noncontrolling Interest            (182)       —                                   (182)                (366)       —                                   (366)\n Earnings Before Income             $ 543,531   $       235,578                     $   779,110          $ 685,076   $         56,766                    $   741,842\n Taxes\n\n (1)  International segment profit (loss) adjustments in the first nine months of\n      fiscal 2026 were due to a non-cash impairment\n      charge. Net Unallocated Expense adjustments were comprised of gain (loss) on\n      divestitures, nonrecurring T&M initiative costs,\n      an unfavorable litigation settlement, corporate restructuring plan charges,\n      and Consulting Agreement costs.\n (2)  Net Unallocated Expense adjustments in the first nine months of fiscal 2025\n      were comprised of nonrecurring T&M initiative\n      costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable\n      litigation settlement.\n\n \n\nORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)\n\nThe non-GAAP measures of organic volume and organic net sales are presented to\nprovide investors with additional information to facilitate the comparison of\npast and present operations. Organic volume and organic net sales exclude the\nimpact of the sale of the Company's controlling equity interest in Justin's,\nLLC in the first quarter of fiscal 2026.\n                      Quarter Ended\n                      July 26, 2026                              July 27, 2025\n In thousands                  GAAP                              GAAP          Divestiture        Non-GAAP      Non-GAAP\n                                                                                                  Organic\n% Change\n Volume (lbs.)\n Retail                        648,340                           712,912       (3,540)            709,372       (8.6)\n Foodservice                   244,830                           248,540       (346)              248,194       (1.4)\n International                 75,908                            85,138        (68)               85,071        (10.8)\n Total Volume (lbs.)           969,078                           1,046,590     (3,953)            1,042,637     (7.1)\n\n Net Sales\n Retail                        $         1,779,434               $ 1,858,434   $    (19,052)      $ 1,839,382   (3.3)\n Foodservice                   1,003,158                         986,976       (1,856)            985,120       1.8\n International                 178,740                           187,466       (520)              186,947       (4.4)\n Total Net Sales               $         2,961,333               $ 3,032,876   $    (21,427)      $ 3,011,449   (1.7)\n\n \n                      Nine Months Ended\n                      July 26, 2026                               July 27, 2025\n In thousands                  GAAP                               GAAP          Divestiture        Non-GAAP      Non-GAAP\n                                                                                                   Organic\n% Change\n Volume (lbs.)\n Retail                        2,005,233                          2,127,075     (8,605)            2,118,469     (5.3)\n Foodservice                   733,557                            734,988       (724)              734,264       (0.1)\n International                 231,905                            239,225       (117)              239,109       (3.0)\n Total Volume (lbs.)           2,970,695                          3,101,288     (9,446)            3,091,842     (3.9)\n\n Net Sales\n Retail                        $         5,416,905                $ 5,532,401   $    (45,526)      $ 5,486,876   (1.3)\n Foodservice                   2,998,096                          2,853,603     (4,100)            2,849,503     5.2\n International                 546,249                            534,495       (1,190)            533,305       2.4\n Total Net Sales               $         8,961,250                $ 8,920,499   $    (50,815)      $ 8,869,684   1.0\n\n \n\nFORWARD-LOOKING GAAP TO NON-GAAP MEASURES\n\nThe information below reconciles the estimated fiscal 2026 GAAP measures to\nthe corresponding estimated adjusted non-GAAP measures.\n\nFiscal 2026 Outlook – Organic Net Sales (Non-GAAP)\nTo provide a clearer comparison of past and present net sales performance, the\nCompany has adjusted its fiscal 2025 net sales to exclude the impact of the\nsale of the Justin's(®) branded business in the first quarter of fiscal 2026\nand the sale of its Brazil operations in the fourth quarter of fiscal 2026.\n In billions                   Fiscal 2026 Outlook                                          2025 Results                       Change\n Net Sales (GAAP)              $         12.1           -        $         12.2             $             12.1                 0 %   -    1 %\n Divestitures                  —                        -        —                          (0.1)\n Organic Net Sales (Non-GAAP)  $         12.1           -        $         12.2             $             12.0                 1 %   -    2 %\n\n \n\nFiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)\nThe Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP\nmeasure that excludes items impacting comparability.\n\nIn fiscal 2026, the Company expects:\n\n * Operating income (GAAP) in the range of $826 million to $869 million\n * Adjustments for gains and losses on divestitures of $94.9 million\n * Adjustments for the T&M initiative of $49.0 million to $52.0 million\n * Adjustment for a non-cash impairment of $48.2 million\n * Adjustment for a litigation settlement of $37.5 million\n * Adjustments for corporate restructuring plan-related charges of $8.5 million\n * Adjustment for the Consulting Agreement of $7.8 million\nResulting in an adjusted operating income range (non-GAAP) of $1,075 million\nto $1,115 million.\n\nFiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)\nThe Company's fiscal 2026 outlook for adjusted diluted earnings per share is a\nnon-GAAP measure that excludes items impacting comparability.\n\nIn fiscal 2026, the Company expects:\n\n * Diluted earnings per share (GAAP) in the range of $1.06 to $1.12\n * Adjustments for gains and losses on divestitures of $0.16\n * Adjustment for a non-cash impairment of $0.09\n * Adjustments for the T&M initiative of $0.07\n * Adjustment for a litigation settlement of $0.05\n * Adjustments for corporate restructuring plan-related charges of $0.01\n * Adjustment for the Consulting Agreement of $0.01\nResulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45\nto $1.51.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2026-results-302861347.html\n(https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2026-results-302861347.html)\n\nSOURCE Hormel Foods Corporation\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1074012/Hormel-Foods-Logo.jpg?id=OA2915142\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn1PgGHFa","title":"HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS","author":"PR Newswire","ticker":"HRL","created":"2026-08-27T10:30:01.138Z","tickers":["HRL"],"exchange":"NYSE","article_body":"HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS\n\nPR Newswire\n\nAUSTIN, Minn., Aug. 27, 2026\n\nCompany Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third\nQuarter and Strong Year-to-Date Performance\n\nAUSTIN, Minn., Aug. 27, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE:\nHRL), a Fortune 500 global branded food company, today reported results for\nthe third quarter of fiscal 2026, which ended July 26, 2026. All comparisons\nare to the comparable period of fiscal 2025, unless otherwise noted.\n\nEXECUTIVE SUMMARY — THIRD QUARTER\n\n * Net sales of $2.96 billion; organic net sales(1) down 2%\n * Operating income of $111 million; adjusted operating income(1) of $266\nmillion\n * Operating margin of 3.7%; adjusted operating margin(1 )of 9.0%\n * Earnings before income taxes of $103 million; adjusted earnings before income\ntaxes(1) of $258 million\n * Diluted earnings per share of $0.11; adjusted diluted earnings per\nshare(1) of $0.37\n * Cash flow from operations of $241 million\nEXECUTIVE COMMENTARY\n\n\"We delivered solid third quarter results, growing our adjusted earnings and\ncontinuing to advance our fiscal 2026 objectives,\" said Jeff Ettinger, interim\nchief executive officer. \"With our strong year-to-date performance and\ncontinued opportunities ahead, we are raising and narrowing our adjusted\nearnings outlook for fiscal 2026 and remain confident in delivering adjusted\nearnings growth for the year consistent with, or above, our long-term\nalgorithm.\"\n\n\"We continued to make progress against our strategic priorities during the\nquarter,\" said John Ghingo, president and chief executive officer-elect.\n\"While net sales declined, the results reflected the impacts of\nportfolio-shaping actions, lower commodity-based pricing in portions of the\nbusiness and a consumer environment that remains under pressure. At the same\ntime, several of our Retail priority brands delivered growth, and Foodservice\nonce again outperformed industry trends, supported by the strength of our\nsolutions-based offerings and operator partnerships. As we continue to enhance\nour capabilities and sharpen our focus, we remain committed to disciplined\nexecution and positioning the company for long-term success.\"\n\nFULL YEAR FISCAL 2026 GUIDANCE\n\nFor fiscal 2026, the Company:\n\n * Expects net sales to be in the range of $12.1 billion to $12.2 billion,\nreflecting organic net sales(1) growth of 1% to 2%\n * Updates operating income guidance to be in the range of $0.83 billion to $0.87\nbillion, which includes the estimated loss related to the Brazil divestiture,\na non-cash impairment charge related to a minority investment in Indonesia,\nand a litigation settlement\n * Raises adjusted operating income(1) guidance to be in the range of $1.08\nbillion to $1.12 billion, reflecting growth of 6% to 10%\n * Updates diluted earnings per share guidance to be in the range of $1.06 to\n$1.12\n * Raises adjusted diluted earnings per share(1) guidance to be in the range of\n$1.45 to $1.51, reflecting growth of 6% to 10%                                     Updated                Previous\n Net Sales                           $12.1 - $12.2 billion  $12.2 - $12.5 billion\n Organic Net Sales(1) Growth Rate    1% - 2%                1% - 4%\n Diluted Earnings per Share          $1.06 - $1.12          $1.28 - $1.37\n Adj. Diluted Earnings per Share(1)  $1.45 - $1.51          $1.43 - $1.51\n\nPORTFOLIO SHAPING\n\nDuring the third quarter of fiscal 2026, the Company announced a definitive\nagreement to sell its Brazil operations, operated under the\nCeratti(®) brand, and classified the business as held for sale. The\ndivestiture reflects the Company's ongoing efforts to simplify and streamline\nits portfolio and focus its international strategy on markets with the\nstrongest long-term growth opportunities.\n\nThe transaction successfully closed in the early part of the fourth quarter of\nfiscal 2026. The expected impacts of the divestiture are reflected in the\nCompany's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter\nof fiscal 2026, the impact of the divestiture will be excluded from\nyear-over-year comparisons in the Company's non-GAAP organic volume¹ and\norganic net sales¹ metrics.\n\nSEGMENT HIGHLIGHTS – THIRD QUARTER\n\nRetail\n\n * Volume down 9%; organic volume(1) down 9%\n * Net sales down 4%; organic net sales(1) down 3%\n * Segment profit down 4%\nOrganic net sales(1) decreased in the third quarter of fiscal 2026, as\ndeclines in commodity turkey and private label snack nuts were partially\noffset by strong performance in value-added turkey offerings, contract\nmanufacturing and Planters(®) snack nuts. Additional priority brands that\ndelivered solid growth during the quarter include the SPAM(® )family of\nproducts, Applegate(®) natural and organic meats, and Hormel(®) chili.\nSegment profit decreased for the third quarter of fiscal 2026, as lower net\nsales and higher logistics expenses were partially offset by lower selling,\ngeneral and administrative expenses.\n\nFoodservice\n\n * Volume down 1%; organic volume(1 )down 1%\n * Net sales up 2%; organic net sales(1) up 2%\n * Segment profit up 3%\nThe third quarter of fiscal 2026 marked the 12(th) consecutive quarter of\norganic net sales(1) growth for the Foodservice segment. Organic net sales¹\ngrowth was broad-based despite the impact of lower commodity-based pricing in\nportions of the portfolio. Growth was driven by multiple product groups and\ncategories, led by significant contributions from premium prepared proteins,\nbranded pepperoni and Jennie-O(®) turkey. Additional branded products,\nincluding Austin Blues(®) smoked meats, Hormel(®) Natural Choice(®) meats\nand Hormel(®) Fire Braised™ meats, also delivered strong net sales\nresults. Segment profit increased for the third quarter of fiscal 2026, as\nhigher net sales and favorable pork input costs were partially offset by\nhigher logistics and selling, general and administrative expenses.\n\nInternational\n\n * Volume down 11%; organic volume(1) down 11%\n * Net sales down 5%; organic net sales(1) down 4%\n * Segment profit down 254%; adjusted segment profit(1 )flat\nFor the International segment, organic net sales¹ declined in the third\nquarter of fiscal 2026. While branded export demand remained resilient during\nthe quarter, the recognition of certain SPAM(®) export sales was adversely\nimpacted due to a one-time legal-entity transition. Segment profit was\nsignificantly impacted by a non-cash impairment charge. Adjusted segment\nprofit(1) was comparable to the prior year, as minority investment\nperformance offset weaker results in Brazil.\n\nADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026\n\nIncome Statement\n\n * Operating margin and adjusted operating margin(1) were 3.7% and 9.0%,\nrespectively, compared to 7.9% and 8.4%, respectively, in the prior year.\n * Selling, general and administrative expenses as a percent of net sales and\nadjusted selling, general and administrative expenses as a percent of net\nsales(1) were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%,\nrespectively, in the prior year.\n * Advertising investments were $34 million, compared to $41 million last year.\n * Significant discrete pre-tax items included: a loss of $56 million related to\nthe Brazil divestiture, a non-cash impairment charge related to a minority\ninvestment in Indonesia of $48 million and a litigation settlement of $38\nmillion.\n * The effective tax rate was 42.3%, compared to 22.3% last year, and was\nsignificantly impacted by one-time items.\nCash Flow Statement\n\n * Cash flow from operations was $241 million, an increase of 54% compared to\nthe prior year.\n * Capital expenditures were $68 million, compared to $72 million last year.\nThe largest projects in the third quarter of fiscal 2026 were related to\ninfrastructure enhancements and investments in data and technology.\n * Depreciation and amortization expense was $66 million, compared to $65 million\nlast year.\n * The Company returned $161 million to stockholders during the quarter through\ndividends.\nBalance Sheet\n\n * The Company remained in a strong financial position at quarter end, with ample\nliquidity and a conservative level of debt.\n * Cash on hand, excluding assets held for sale, was $840 million at quarter\nend, an increase of $169 million from the end of fiscal 2025.\n * Inventories were $1.8 billion at quarter end, an increase of $54 million\nfrom the end of fiscal 2025.\nPRESENTATION\nA conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is\navailable at hormelfoods.com by clicking on \"Investors.\" The call will also be\navailable via telephone by dialing 833-461-5787 (toll free) or 585-542-9983\n(international) and providing the conference ID 915 330 197. An audio replay\nis available at hormelfoods.com. The webcast replay will be available at noon\nCT, Aug. 27, 2026, and will remain on the website for one year.\n\nABOUT HORMEL FOODS\nHormel Foods Corporation, based in Austin, Minnesota, is a global branded food\ncompany with over $12 billion in annual revenue. Its brands include\nPlanters(®), Skippy(®), SPAM(®), Hormel(®) Natural Choice(®),\nApplegate(®), Wholly(®), Hormel(®) Black Label(®), Columbus(®),\nJennie-O(®) and more than 30 other beloved brands. The Company is a member\nof the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named\none of the best companies to work for by U.S. News & World Report and one\nof America's most responsible companies by Newsweek, was recognized by TIME\nmagazine as one of the World's Best Companies and has received numerous other\nawards and accolades for its corporate responsibility and community service\nefforts. For more information, visit hormelfoods.com.\n\nFORWARD-LOOKING STATEMENTS\nThis news release contains forward-looking statements, which are based on the\nCompany's current assumptions and expectations. These statements are typically\naccompanied by the words \"aim,\" \"anticipate,\" \"believe,\" \"could,\" \"estimate,\"\n\"expect,\" \"intend,\" \"may,\" \"might,\" \"plan,\" \"project,\" \"seek,\" \"target,\"\n\"will,\" \"would,\" or similar words or expressions. The principal\nforward-looking statements in this news release include statements regarding\nthe Company's fiscal 2026 guidance and future financial and operational\nperformance.\n\nAll such forward-looking statements are intended to enjoy the protection of\nthe safe harbor for forward-looking statements contained in the Private\nSecurities Litigation Reform Act of 1995, as amended. Although the Company\nbelieves there is a reasonable basis for the forward-looking statements, its\nactual results could be materially different. The most important factors that\ncould cause the Company's actual results to differ from its forward-looking\nstatements include, but are not limited to, risks related to the deterioration\nof economic conditions; risks related to acquisitions, joint ventures, equity\ninvestments, and divestitures; risks and uncertainties associated with\nintangible assets, including any future goodwill or intangible assets\nimpairment charges; the risk of disruption of operations; the risk that the\nCompany may fail to realize anticipated cost savings or operating profit\nimprovements associated with strategic initiatives, including the Transform\nand Modernize initiative and the Company's recent corporate restructuring\nplan; risk of unfavorable changes in the Company's relationships with third\nparties; risk of the Company's inability to protect information technology\n(IT) systems against, or effectively respond to, cyberattacks, security\nbreaches or other IT interruptions; labor relations and labor availability\nrisks; food safety risks; fluctuations in commodity prices and availability of\nraw materials and other inputs; fluctuations in market demand for the\nCompany's products; risks related to the Company's ability to respond to\nchanging consumer preferences; damage to the Company's reputation or brand\nimage; risks of litigation; risks associated with government regulation; risks\nrelated to trade policies, export and import controls, and tariffs; and the\nother risks and uncertainties described in Item 1A – Risk Factors of the\nCompany's most recent Annual Report on Form 10-K and Quarterly Reports on Form\n10-Q, which can be accessed at hormelfoods.com in the \"Investors\" section.\nThough the Company has attempted to list comprehensively these important\ncautionary risk factors, the Company cautions that other factors may in the\nfuture prove to be important in affecting the Company's business or results of\noperations. Forward-looking statements speak only as of the date they are\nmade, and the Company does not undertake any obligation to update any\nforward-looking statement except as otherwise required by law.\n\nNote: Due to rounding, numbers presented throughout this press release may\nnot sum precisely to the totals provided, and percentages may not precisely\nreflect the absolute figures.\n\nReclassifications: Certain prior year amounts have been reclassified to\nconform to the current year presentation.\n\nEND NOTES\n\n 1. Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for\nmore information.\nINVESTOR CONTACT\nJess Blomberg\nir@hormel.com (mailto:ir@hormel.com)\n\nMEDIA CONTACT\nLaura Cederberg\nmedia@hormel.com (mailto:media@hormel.com)\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED STATEMENTS OF OPERATIONS\n In thousands, except per share amounts\n Unaudited\n\n                                            Quarter Ended                                              Nine Months Ended\n                                            July 26, 2026                   July 27, 2025              July 26, 2026                    July 27, 2025\n Net Sales                                  $ 2,961,333                     $ 3,032,876                $ 8,961,250                      $ 8,920,499\n Cost of Products Sold                      2,489,818                       2,545,567                  7,501,653                        7,473,524\n Gross Profit                               471,515                         487,309                    1,459,597                        1,446,975\n Selling, General, and Administrative       323,501                         258,713                    883,822                          773,158\n Equity in Earnings of Affiliates           (37,110)                        11,153                     (4,061)                          42,614\n Operating Income                           110,904                         239,748                    571,713                          716,430\n Interest Income                            6,661                           4,877                      19,667                           18,596\n Interest Expense                           19,635                          19,461                     59,185                           58,438\n Other Income (Expense), Net                5,227                           11,350                     11,336                           8,488\n Earnings Before Income Taxes               103,157                         236,514                    543,531                          685,076\n Provision for Income Taxes                 43,638                          52,818                     144,865                          151,107\n Effective Tax Rate                         42.3 %                          22.3 %                     26.7 %                           22.1 %\n Net Earnings                               59,519                          183,696                    398,666                          533,968\n Less: Net Earnings (Loss) Attributable     (55)                            (46)                       (182)                            (366)\n    to Noncontrolling Interest\n Net Earnings Attributable to Hormel        $     59,573                    $   183,742                $   398,848                      $   534,334\n Foods Corporation\n\n Net Earnings Per Share:\n Basic                                      $         0.11                  $         0.33             $         0.72                   $         0.97\n Diluted                                    $         0.11                  $         0.33             $         0.72                   $         0.97\n\n Weighted-average Shares\n Outstanding:\n Basic                                      550,675                         550,408                    550,572                          550,048\n Diluted                                    551,074                         550,723                    550,898                          550,396\n\n Dividends Declared Per Share               $     0.2925                    $     0.2900               $     0.8775                     $     0.8700\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION\n In thousands\n Unaudited\n\n                                                   July 26, 2026                           October 26, 2025\n Assets\n Cash and Cash Equivalents                         $              839,639                  $              670,679\n Short-term Marketable Securities                  28,807                                  32,909\n Accounts and Other Receivables, Net               733,460                                 813,989\n Inventories                                       1,801,567                               1,747,279\n Taxes Receivable                                  58,688                                  96,791\n Prepaid Expenses and Other Current Assets         53,420                                  44,010\n Assets Held for Sale                              10,659                                  —\n Total Current Assets                              3,526,238                               3,405,656\n\n Goodwill                                          4,867,763                               4,924,087\n Intangible Assets                                 1,572,850                               1,647,297\n Pension Assets                                    204,135                                 211,826\n Investments in Affiliates                         527,864                                 533,984\n Other Assets                                      430,139                                 431,500\n Property, Plant, and Equipment, Net               2,163,025                               2,238,770\n Total Assets                                      $         13,292,014                    $         13,393,119\n\n Liabilities and Shareholders' Investment\n Accounts Payable & Accrued Expenses               $              771,154                  $              787,350\n Accrued Marketing Expenses                        133,313                                 113,947\n Employee-related Expenses                         250,072                                 273,402\n Interest and Dividends Payable                    175,646                                 180,700\n Taxes Payable                                     10,690                                  18,752\n Current Maturities of Long-term Debt              505,634                                 6,646\n Liabilities Held for Sale                         27,483                                  —\n Total Current Liabilities                         1,873,991                               1,380,796\n\n Long-term Debt Less Current Maturities            2,349,489                               2,850,778\n Pension and Postretirement Benefits               351,174                                 358,984\n Deferred Income Taxes                             653,360                                 661,349\n Other Long-term Liabilities                       204,345                                 225,397\n Accumulated Other Comprehensive Loss              (236,907)                               (243,646)\n Other Shareholders' Investment                    8,096,561                               8,159,461\n Total Liabilities and Shareholders' Investment    $         13,292,014                    $         13,393,119\n\n \n HORMEL FOODS CORPORATION\n CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS\n In thousands\n Unaudited\n\n                                                                Quarter Ended                                           Nine Months Ended\n                                                                July 26, 2026                   July 27, 2025           July 26, 2026                 July 27, 2025\n Operating Activities\n Net Earnings                                                   $        59,519                 $      183,696          $      398,666                $      533,968\n Depreciation and Amortization                                  66,427                          64,692                  202,348                       194,527\n Equity in Earnings of Affiliates                               37,110                          (11,153)                4,061                         (42,614)\n Loss (Gain) on Divestitures                                    57,379                          —                       94,085                        10,800\n Decrease (Increase) in Working Capital, Net of Divestitures    (2,174)                         (95,844)                111                           (255,011)\n Other                                                          22,339                          15,307                  69,481                        80,674\n Net Cash Provided by (Used in)                                 240,599                         156,698                 768,752                       522,345\n    Operating Activities\n\n Investing Activities\n Net Sale (Purchase) of Securities                              3,498                           (1,434)                 3,372                         (6,170)\n Proceeds from Sale of Business                                 (2,979)                         —                       97,056                        13,139\n Purchases of Property, Plant, and                              (68,163)                        (72,194)                (219,331)                     (219,444)\n    Equipment\n Proceeds from (Purchases of) Affiliates                        —                               (584)                   (5,316)                       (3,283)\n    and Other Investments\n Other                                                          6,119                           7,890                   11,952                        10,767\n Net Cash Provided by (Used in)                                 (61,526)                        (66,323)                (112,267)                     (204,991)\n    Investing Activities\n\n Financing Activities\n Repayments of Long-term Debt and                               (1,773)                         (2,005)                 (5,425)                       (6,250)\n    Finance Leases\n Dividends Paid on Common Stock                                 (160,963)                       (159,467)               (481,401)                     (473,692)\n Other                                                          (283)                           (1,784)                 (1,609)                       24,057\n Net Cash Provided by (Used in)                                 (163,019)                       (163,256)               (488,435)                     (455,884)\n    Financing Activities\n Effect of Exchange Rate Changes on                             1,291                           2,381                   5,368                         (4,161)\n    Cash\n Increase (Decrease) in Cash, Cash                              17,345                          (70,499)                173,417                       (142,692)\n    Equivalents, and Cash Held for Sale\n Cash, Cash Equivalents, and Cash Held                          826,750                         669,688                 670,679                       741,881\n    for Sale at Beginning of Period\n Cash, Cash Equivalents, and Cash Held                          844,095                         599,189                 844,095                       599,189\n    for Sale at End of Period\n Less: Cash Held for Sale                                       4,457                           —                       4,457                         —\n Cash and Cash Equivalents at End of                            $      839,639                  $      599,189          $      839,639                $      599,189\n Period\n\n \n HORMEL FOODS CORPORATION\n SEGMENT DATA\n In thousands\n Unaudited\n\n                            Quarter Ended                                            Nine Months Ended\n                            July 26,               July 27,               %          July 26,                July 27,                %\n                            2026                   2025                   Change     2026                    2025                    Change\n Volume (lbs.)\n Retail                     648,340                712,912                (9.1)      2,005,233               2,127,075               (5.7)\n Foodservice                244,830                248,540                (1.5)      733,557                 734,988                 (0.2)\n International              75,908                 85,138                 (10.8)     231,905                 239,225                 (3.1)\n Total Volume (lbs.)        969,078                1,046,590              (7.4)      2,970,695               3,101,288               (4.2)\n\n Net Sales\n Retail                     $ 1,779,434            $ 1,858,434            (4.3)      $ 5,416,905             $ 5,532,401             (2.1)\n Foodservice                1,003,158              986,976                1.6        2,998,096               2,853,603               5.1\n International              178,740                187,466                (4.7)      546,249                 534,495                 2.2\n Total Net Sales            $ 2,961,333            $ 3,032,876            (2.4)      $ 8,961,250             $ 8,920,499             0.5\n\n Segment Profit\n Retail                     $    118,073           $    122,566           (3.7)      $    369,902            $    378,847            (2.4)\n Foodservice                144,475                140,711                2.7        456,800                 420,170                 8.7\n International              (29,233)               18,941                 (254.3)    15,812                  58,193                  (72.8)\n Total Segment Profit       233,316                282,218                (17.3)     842,515                 857,210                 (1.7)\n Net Unallocated Expense    130,104                45,658                 185.0      298,802                 171,769                 74.0\n Noncontrolling Interest    (55)                   (46)                   (20.4)     (182)                   (366)                   50.2\n Earnings Before            $   103,157            $   236,514            (56.4)     $   543,531             $   685,076             (20.7)\n Income Taxes\n\n \n\nAPPENDIX: NON-GAAP MEASURES\nThis press release includes measures of financial performance that are not\ndefined by U.S. generally accepted accounting principles (GAAP). The Company\nutilizes these non-GAAP measures to understand and evaluate operating\nperformance on a consistent basis. These measures may also be used when making\ndecisions regarding resource allocation and in determining incentive\ncompensation. The Company believes these non-GAAP measures provide useful\ninformation to investors because they aid analysis and understanding of the\nCompany's results and business trends relative to past performance and the\nCompany's competitors. Non-GAAP measures are not intended to be a substitute\nfor GAAP measures in analyzing financial performance. These non-GAAP measures\nare not calculated in accordance with GAAP and may be different from non-GAAP\nmeasures used by other companies.\n\nTransform and Modernize (T&M) Initiative\nIn the fourth quarter of fiscal 2023, the Company announced a multi-year\nT&M initiative. In presenting non-GAAP measures, the Company adjusts for\n(i.e., excludes) expenses for this initiative that are nonrecurring, which are\nprimarily project-based external consulting fees and expenses related to\nsupply chain and portfolio optimization (e.g., asset write-offs, severance, or\nrelocation-related costs). The Company believes that nonrecurring costs\nassociated with the T&M initiative are not reflective of the Company's\nongoing operating cost structure; therefore, the Company is excluding these\ndiscrete costs. The Company does not adjust for (i.e., does not exclude)\ncertain costs related to the T&M initiative that are expected to continue\nafter the project ends, such as software license fees and internal employee\nexpenses, because those costs are considered ongoing in nature as a component\nof normal operating costs. The Company also does not adjust for savings\nrealized through the T&M initiative as these are considered ongoing in\nnature and reflective of expected future operating performance.\n\nGain or Loss on Divestitures\nAs part of its ongoing portfolio management activities, the Company may\nperiodically divest certain businesses to better align its portfolio with its\nstrategic objectives and long-term growth strategy. The Company believes the\none-time impacts from these transactions, including transaction costs, are not\nreflective of the Company's ongoing operating cost structure, are not\nindicative of the Company's core operating performance, and are not meaningful\nwhen comparing the Company's operating performance against that of prior\nperiods. Thus, the Company has adjusted for (i.e., excluded) these impacts.\nTransactions affecting comparability include the Brazil transaction, the\nwhole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain\nPrairie, LLC divestiture.\n\nCorporate Restructuring Plan\nIn the fourth quarter of fiscal 2025, the Company commenced a corporate\nrestructuring plan, the focus of which is to reduce administrative expenses,\nimprove efficiencies, and align the workforce to the Company's future needs,\nwhile enabling continued investment in the Company's growth. The costs\nincurred to execute the corporate restructuring plan and the charges incurred\nunder the program are primarily related to severance and employee benefit\ncosts. Because the Company believes certain charges incurred under the\ncorporate restructuring plan do not reflect future operating costs and are not\nmeaningful when comparing the Company's operating performance against that of\nprior periods, the Company adjusts for (i.e., excludes) these impacts.\n\nConsulting Agreement\nOn October 27, 2025, the Company entered into a consulting agreement\n(Consulting Agreement) with its former Chief Executive Officer (CEO), pursuant\nto which the former CEO is expected to provide consulting services to the\nCompany until April 2027. Consulting costs related to the Consulting Agreement\ninclude cash and share-based compensation, which were primarily recognized in\nthe first quarter of fiscal 2026. The Company believes nonrecurring costs\nassociated with the Consulting Agreement are not reflective of the Company's\nongoing operating cost structure, are not indicative of the Company's core\noperating performance, and are not meaningful when comparing the Company's\noperating performance against that of prior periods; therefore, the Company is\nexcluding these discrete costs.\n\nLegal Matters\nFrom time to time, the Company receives proceeds or incurs expenses related to\ndiscrete legal matters that the Company believes are not indicative of the\nCompany's core operating performance, do not reflect expected future operating\nincome or costs, and are not meaningful when comparing the Company's operating\nperformance against that of prior periods. The Company adjusts for (i.e.,\nexcludes) these impacts.\n\nLitigation Settlements\nIn the third quarter of fiscal 2026, the Company executed a settlement\nagreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the\nCompany entered into a settlement agreement with certain plaintiffs in an\nantitrust lawsuit.\n\nImpairments\nIn the third quarter of fiscal 2026, the Company recorded a non-cash\nimpairment charge related to a minority investment in Indonesia. The Company\nbelieves these charges are not indicative of the Company's core operating\nperformance, do not reflect expected future operating income or costs, and are\nnot meaningful when comparing the Company's operating performance against that\nof prior periods. Thus, the Company has adjusted for (i.e., excluded) these\nimpacts.\n\nThe tables below show the calculations to reconcile from the GAAP measures to\nthe non-GAAP measures presented in this press release. The tax provision\nexpense or benefit of each of the pre-tax items excluded from the Company's\nGAAP results was computed based on the facts and tax implications associated\nwith each item.\n\n \n HORMEL FOODS CORPORATION\n RECONCILIATION OF NON-GAAP MEASURES\n Unaudited\n                                                         Quarter Ended                                                  Nine Months Ended\n In thousands, except per share amounts                  July 26, 2026                       July 27, 2025              July 26, 2026                  July 27, 2025\n Cost of Products Sold (GAAP)                            $ 2,489,818                         $ 2,545,567                $ 7,501,653                    $ 7,473,524\n Transform and Modernize Initiative((1))                 (447)                               (1,010)                    (2,222)                        (3,973)\n Adjusted Cost of Products Sold (Non-GAAP)               $ 2,489,371                         $ 2,544,557                $ 7,499,431                    $ 7,469,551\n\n SG&A (GAAP)                                             $    323,501                        $    258,713               $   883,822                    $   773,158\n Transform and Modernize Initiative((2))                 (11,792)                            (13,485)                   (36,448)                       (41,228)\n Gain (Loss) on Divestitures                             (57,379)                            —                          (94,911)                       (11,324)\n Corporate Restructuring Plan                            26                                  —                          (8,505)                        —\n Consulting Agreement                                    —                                   —                          (7,775)                        —\n Litigation Settlements                                  (37,500)                            —                          (37,500)                       (240)\n Adjusted SG&A (Non-GAAP)                                $    216,856                        $    245,228               $   698,684                    $   720,366\n\n Equity in Earnings of Affiliates (GAAP)                 $    (37,110)                       $     11,153               $     (4,061)                  $     42,614\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Equity in Earnings of Affiliates (Non-         $     11,109                        $     11,153               $     44,157                   $     42,614\n GAAP)\n\n Operating Income (GAAP)                                 $    110,904                        $    239,748               $   571,713                    $   716,430\n Transform and Modernize Initiative((1)(2))              12,239                              14,496                     38,669                         45,202\n (Gain) Loss on Divestitures                             57,379                              —                          94,911                         11,324\n Corporate Restructuring Plan                            (26)                                —                          8,505                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  37,500                              —                          37,500                         240\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Operating Income (Non-GAAP)                    $    266,215                        $    254,244               $   807,292                    $   773,196\n\n Earnings Before Income Taxes (GAAP)                     $    103,157                        $    236,514               $   543,531                    $   685,076\n Transform and Modernize Initiative((1)(2))              12,239                              14,496                     38,669                         45,202\n (Gain) Loss on Divestitures                             57,379                              —                          94,911                         11,324\n Corporate Restructuring Plan                            (26)                                —                          8,505                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  37,500                              —                          37,500                         240\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Earnings Before Income Taxes (Non-             $    258,467                        $    251,010               $   779,110                    $   741,842\n GAAP)\n\n Provision for Income Taxes (GAAP)                       $     43,638                        $     52,818               $   144,865                    $   151,107\n Transform and Modernize Initiative((1)(2))              2,999                               3,233                      9,474                          9,960\n (Gain) Loss on Divestitures                             303                                 —                          4,525                          2,469\n Corporate Restructuring Plan                            (6)                                 —                          2,084                          —\n Consulting Agreement                                    —                                   —                          —                              —\n Litigation Settlements                                  9,188                               —                          9,188                          52\n Impairments                                             —                                   —                          —                              —\n Adjusted Provision for Income Taxes (Non-GAAP)          $     56,120                        $     56,051               $   170,136                    $   163,588\n\n Net Earnings Attributable to Hormel Foods               $     59,573                        $    183,742               $   398,848                    $   534,334\n Corporation (GAAP)\n Transform and Modernize Initiative((1)(2))              9,241                               11,263                     29,195                         35,242\n (Gain) Loss on Divestitures                             57,076                              —                          90,386                         8,855\n Corporate Restructuring Plan                            (20)                                —                          6,421                          —\n Consulting Agreement                                    —                                   —                          7,775                          —\n Litigation Settlements                                  28,313                              —                          28,313                         188\n Impairments                                             48,218                              —                          48,218                         —\n Adjusted Net Earnings Attributable to Hormel            $    202,402                        $    195,005               $   609,156                    $   578,620\n Foods Corporation (Non-GAAP)\n\n Diluted Earnings Per Share (GAAP)                       $         0.11                      $         0.33             $        0.72                  $        0.97\n Transform and Modernize Initiative((1)(2))              0.02                                0.02                       0.05                           0.06\n (Gain) Loss on Divestitures                             0.10                                —                          0.16                           0.02\n Corporate Restructuring Plan                            —                                   —                          0.01                           —\n Consulting Agreement                                    —                                   —                          0.01                           —\n Litigation Settlements                                  0.05                                —                          0.05                           —\n Impairments                                             0.09                                —                          0.09                           —\n Adjusted Diluted Earnings Per Share (Non-GAAP)          $         0.37                      $         0.35             $        1.11                  $        1.05\n\n SG&A as a Percent of Net Sales (GAAP)                   10.9 %                              8.5 %                      9.9 %                          8.7 %\n Transform and Modernize Initiative((2))                 (0.4)                               (0.4)                      (0.4)                          (0.5)\n Gain (Loss) on Divestitures                             (1.9)                               —                          (1.1)                          (0.1)\n Corporate Restructuring Plan                            —                                   —                          (0.1)                          —\n Consulting Agreement                                    —                                   —                          (0.1)                          —\n Litigation Settlements                                  (1.3)                               —                          (0.4)                          —\n Adjusted SG&A as a Percent of Net Sales (Non-GAAP)      7.3 %                               8.1 %                      7.8 %                          8.1 %\n\n Operating Margin (GAAP)                                 3.7 %                               7.9 %                      6.4 %                          8.0 %\n Transform and Modernize Initiative((1)(2))              0.4                                 0.5                        0.4                            0.5\n (Gain) Loss on Divestitures                             1.9                                 —                          1.1                            0.1\n Corporate Restructuring Plan                            —                                   —                          0.1                            —\n Consulting Agreement                                    —                                   —                          0.1                            —\n Litigation Settlements                                  1.3                                 —                          0.4                            —\n Impairments                                             1.6                                 —                          0.5                            —\n Adjusted Operating Margin (Non-GAAP)                    9.0 %                               8.4 %                      9.0 %                          8.7 %\n\n (1)  Comprised primarily of costs related to supply chain and portfolio\n optimization.\n (2)  Comprised primarily of project-based external consulting fees.\n\n \n\nADJUSTED SEGMENT PROFIT (NON-GAAP)\n                               Quarter Ended\n                               July 26, 2026                                                             July 27, 2025\n In thousands                        GAAP        Non-GAAP Adjustments((1))           Non-GAAP            GAAP        Non-GAAP Adjustments((2))           Non-GAAP\n Segment Profit (Loss)\n Retail                              $ 118,073   $               —                   $   118,073         $ 122,566   $               —                   $   122,566\n Foodservice                         144,475     —                                   144,475             140,711     —                                   140,711\n International                       (29,233)    48,218                              18,985              18,941      —                                   18,941\n Total Segment Profit (Loss)         233,316     48,218                              281,534             282,218     —                                   282,218\n Net Unallocated Expense             130,104     (107,092)                           23,012              45,658      (14,496)                            31,162\n Noncontrolling Interest             (55)        —                                   (55)                (46)        —                                   (46)\n Earnings Before Income Taxes        $ 103,157   $       155,310                     $   258,467         $ 236,514   $         14,496                    $   251,010\n\n (1)  International segment profit (loss) adjustments in the third quarter of fiscal\n      2026 were due to a non-cash impairment charge.\n      Net Unallocated Expense adjustments were comprised of gain (loss) on\n      divestitures, an unfavorable litigation settlement,\n      nonrecurring T&M initiative costs, and corporate restructuring plan\n      charges.\n (2)  Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were\n      comprised of nonrecurring T&M initiative costs.\n\n \n                              Nine Months Ended\n                              July 26, 2026                                                              July 27, 2025\n In thousands                       GAAP        Non-GAAP Adjustments((1))           Non-GAAP             GAAP        Non-GAAP Adjustments((2))           Non-GAAP\n Segment Profit (Loss)\n Retail                             $ 369,902   $               —                   $   369,902          $ 378,847   $               —                   $   378,847\n Foodservice                        456,800     —                                   456,800              420,170     —                                   420,170\n International                      15,812      48,218                              64,031               58,193      —                                   58,193\n Total Segment Profit (Loss)        842,515     48,218                              890,734              857,210     —                                   857,210\n Net Unallocated Expense            298,802     (187,360)                           111,442              171,769     (56,766)                            115,003\n Noncontrolling Interest            (182)       —                                   (182)                (366)       —                                   (366)\n Earnings Before Income             $ 543,531   $       235,578                     $   779,110          $ 685,076   $         56,766                    $   741,842\n Taxes\n\n (1)  International segment profit (loss) adjustments in the first nine months of\n      fiscal 2026 were due to a non-cash impairment\n      charge. Net Unallocated Expense adjustments were comprised of gain (loss) on\n      divestitures, nonrecurring T&M initiative costs,\n      an unfavorable litigation settlement, corporate restructuring plan charges,\n      and Consulting Agreement costs.\n (2)  Net Unallocated Expense adjustments in the first nine months of fiscal 2025\n      were comprised of nonrecurring T&M initiative\n      costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable\n      litigation settlement.\n\n \n\nORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)\n\nThe non-GAAP measures of organic volume and organic net sales are presented to\nprovide investors with additional information to facilitate the comparison of\npast and present operations. Organic volume and organic net sales exclude the\nimpact of the sale of the Company's controlling equity interest in Justin's,\nLLC in the first quarter of fiscal 2026.\n                      Quarter Ended\n                      July 26, 2026                              July 27, 2025\n In thousands                  GAAP                              GAAP          Divestiture        Non-GAAP      Non-GAAP\n                                                                                                  Organic\n% Change\n Volume (lbs.)\n Retail                        648,340                           712,912       (3,540)            709,372       (8.6)\n Foodservice                   244,830                           248,540       (346)              248,194       (1.4)\n International                 75,908                            85,138        (68)               85,071        (10.8)\n Total Volume (lbs.)           969,078                           1,046,590     (3,953)            1,042,637     (7.1)\n\n Net Sales\n Retail                        $         1,779,434               $ 1,858,434   $    (19,052)      $ 1,839,382   (3.3)\n Foodservice                   1,003,158                         986,976       (1,856)            985,120       1.8\n International                 178,740                           187,466       (520)              186,947       (4.4)\n Total Net Sales               $         2,961,333               $ 3,032,876   $    (21,427)      $ 3,011,449   (1.7)\n\n \n                      Nine Months Ended\n                      July 26, 2026                               July 27, 2025\n In thousands                  GAAP                               GAAP          Divestiture        Non-GAAP      Non-GAAP\n                                                                                                   Organic\n% Change\n Volume (lbs.)\n Retail                        2,005,233                          2,127,075     (8,605)            2,118,469     (5.3)\n Foodservice                   733,557                            734,988       (724)              734,264       (0.1)\n International                 231,905                            239,225       (117)              239,109       (3.0)\n Total Volume (lbs.)           2,970,695                          3,101,288     (9,446)            3,091,842     (3.9)\n\n Net Sales\n Retail                        $         5,416,905                $ 5,532,401   $    (45,526)      $ 5,486,876   (1.3)\n Foodservice                   2,998,096                          2,853,603     (4,100)            2,849,503     5.2\n International                 546,249                            534,495       (1,190)            533,305       2.4\n Total Net Sales               $         8,961,250                $ 8,920,499   $    (50,815)      $ 8,869,684   1.0\n\n \n\nFORWARD-LOOKING GAAP TO NON-GAAP MEASURES\n\nThe information below reconciles the estimated fiscal 2026 GAAP measures to\nthe corresponding estimated adjusted non-GAAP measures.\n\nFiscal 2026 Outlook – Organic Net Sales (Non-GAAP)\nTo provide a clearer comparison of past and present net sales performance, the\nCompany has adjusted its fiscal 2025 net sales to exclude the impact of the\nsale of the Justin's(®) branded business in the first quarter of fiscal 2026\nand the sale of its Brazil operations in the fourth quarter of fiscal 2026.\n In billions                   Fiscal 2026 Outlook                                          2025 Results                       Change\n Net Sales (GAAP)              $         12.1           -        $         12.2             $             12.1                 0 %   -    1 %\n Divestitures                  —                        -        —                          (0.1)\n Organic Net Sales (Non-GAAP)  $         12.1           -        $         12.2             $             12.0                 1 %   -    2 %\n\n \n\nFiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)\nThe Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP\nmeasure that excludes items impacting comparability.\n\nIn fiscal 2026, the Company expects:\n\n * Operating income (GAAP) in the range of $826 million to $869 million\n * Adjustments for gains and losses on divestitures of $94.9 million\n * Adjustments for the T&M initiative of $49.0 million to $52.0 million\n * Adjustment for a non-cash impairment of $48.2 million\n * Adjustment for a litigation settlement of $37.5 million\n * Adjustments for corporate restructuring plan-related charges of $8.5 million\n * Adjustment for the Consulting Agreement of $7.8 million\nResulting in an adjusted operating income range (non-GAAP) of $1,075 million\nto $1,115 million.\n\nFiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)\nThe Company's fiscal 2026 outlook for adjusted diluted earnings per share is a\nnon-GAAP measure that excludes items impacting comparability.\n\nIn fiscal 2026, the Company expects:\n\n * Diluted earnings per share (GAAP) in the range of $1.06 to $1.12\n * Adjustments for gains and losses on divestitures of $0.16\n * Adjustment for a non-cash impairment of $0.09\n * Adjustments for the T&M initiative of $0.07\n * Adjustment for a litigation settlement of $0.05\n * Adjustments for corporate restructuring plan-related charges of $0.01\n * Adjustment for the Consulting Agreement of $0.01\nResulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45\nto $1.51.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2026-results-302861347.html\n(https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2026-results-302861347.html)\n\nSOURCE Hormel Foods Corporation\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1074012/Hormel-Foods-Logo.jpg?id=OA2915142\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-08-27T10:30:01.273333347Z","server_sent_at_ms":1787826601273},"received_at":"2026-08-27T10:30:01.326Z","source_url":"https://www.prnewswire.com/news-releases/hormel-foods-reports-third-quarter-fiscal-2026-results-302861347.html"},"analysis":{"id":"117945","press_release_id":"129033","analysis_json":{"industry":{"label":"Food Products","sector":"Consumer Staples"},"redFlags":["GAAP EPS collapsed to $0.11 from $0.33 in the prior year due to significant one-time charges","Total volume declined 7.4% and net sales declined 2.4% year-over-year","Effective tax rate spiked to 42.3% from 22.3% due to one-time items"],"eventType":"earnings","narrative":"Hormel Foods reported Q3 net sales of $2.96 billion, down 2.4% year-over-year, while GAAP EPS fell to $0.11 due to significant one-time charges including a $56 million loss on the Brazil divestiture.\n\nAdjusted operating income grew 4.6% to $266 million and adjusted EPS rose to $0.37, leading management to raise its full-year adjusted EPS guidance to the range of $1.45 to $1.51.\n\nCash flow from operations increased 54% to $241 million, and the company returned $161 million to stockholders through dividends during the quarter.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Adjusted earnings beat and guidance raise provide cover for GAAP noise and sales volume decline."},"keyFigures":{"eps":0.11,"revenue":2961333000,"guidance":"FY26 Adjusted EPS $1.45-$1.51 (raised from $1.43-$1.51); Net Sales $12.1-$12.2 billion","revenueYoy":"-2.4%","customDimensions":{"adj_eps":0.37,"operating_income":"$111 million","dividend_per_share":"$0.2925","effective_tax_rate":"42.3%","adj_operating_income":"$266 million","cash_flow_from_operations":"$241 million"}},"quotedText":"With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026 and remain confident in delivering adjusted earnings growth for the year consistent with, or above, our long-term algorithm.","namedEntities":{"people":[{"name":"Jeff Ettinger","role":"interim chief executive officer"},{"name":"John Ghingo","role":"president and chief executive officer-elect"}],"products":["SPAM","Applegate","Planters","Jennie-O","Hormel chili","Austin Blues","Hormel Natural Choice","Hormel Fire Braised","Skippy","Wholly","Hormel Black Label","Columbus","Ceratti"],"companies":[{"name":"Hormel Foods Corporation","ticker":"HRL"}],"dollarAmounts":[{"amount":"$2.96 billion","context":"Q3 net sales"},{"amount":"$111 million","context":"Q3 operating income"},{"amount":"$266 million","context":"Q3 adjusted operating income"},{"amount":"$0.11","context":"Q3 diluted earnings per share"},{"amount":"$0.37","context":"Q3 adjusted diluted earnings per share"},{"amount":"$241 million","context":"Q3 cash flow from operations"},{"amount":"$56 million","context":"loss related to the Brazil divestiture"},{"amount":"$48 million","context":"non-cash impairment charge related to a minority investment in Indonesia"},{"amount":"$38 million","context":"litigation settlement"},{"amount":"$12.1 - $12.2 billion","context":"FY26 net sales guidance"},{"amount":"$1.45 - $1.51","context":"FY26 adjusted diluted earnings per share guidance"}]},"materialImpact":{"score":3,"reasoning":"The company raised and narrowed its adjusted EPS guidance for the full year, signaling confidence despite a GAAP EPS miss and net sales decline driven by significant one-time charges and portfolio actions."},"tickerRelevance":{"others":[],"primary":"HRL"},"globalImportance":35,"audienceRelevance":40,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"S&P 500 / Dividend Aristocrat","eventGravity":"Earnings with Guidance Raise","sectorWeight":"Consumer Staples"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":3,"narrative":"Hormel Foods reported Q3 net sales of $2.96 billion, down 2.4% year-over-year, while GAAP EPS fell to $0.11 due to significant one-time charges including a $56 million loss on the Brazil divestiture.\n\nAdjusted operating income grew 4.6% to $266 million and adjusted EPS rose to $0.37, leading management to raise its full-year adjusted EPS guidance to the range of $1.45 to $1.51.\n\nCash flow from operations increased 54% to $241 million, and the company returned $161 million to stockholders through dividends during the quarter.","key_figures":{"eps":0.11,"revenue":2961333000,"guidance":"FY26 Adjusted EPS $1.45-$1.51 (raised from $1.43-$1.51); Net Sales $12.1-$12.2 billion","revenueYoy":"-2.4%","customDimensions":{"adj_eps":0.37,"operating_income":"$111 million","dividend_per_share":"$0.2925","effective_tax_rate":"42.3%","adj_operating_income":"$266 million","cash_flow_from_operations":"$241 million"}},"named_entities":{"people":[{"name":"Jeff Ettinger","role":"interim chief executive officer"},{"name":"John Ghingo","role":"president and chief executive officer-elect"}],"products":["SPAM","Applegate","Planters","Jennie-O","Hormel chili","Austin Blues","Hormel Natural Choice","Hormel Fire Braised","Skippy","Wholly","Hormel Black Label","Columbus","Ceratti"],"companies":[{"name":"Hormel Foods Corporation","ticker":"HRL"}],"dollarAmounts":[{"amount":"$2.96 billion","context":"Q3 net sales"},{"amount":"$111 million","context":"Q3 operating income"},{"amount":"$266 million","context":"Q3 adjusted operating income"},{"amount":"$0.11","context":"Q3 diluted earnings per share"},{"amount":"$0.37","context":"Q3 adjusted diluted earnings per share"},{"amount":"$241 million","context":"Q3 cash flow from operations"},{"amount":"$56 million","context":"loss related to the Brazil divestiture"},{"amount":"$48 million","context":"non-cash impairment charge related to a minority investment in Indonesia"},{"amount":"$38 million","context":"litigation settlement"},{"amount":"$12.1 - $12.2 billion","context":"FY26 net sales guidance"},{"amount":"$1.45 - $1.51","context":"FY26 adjusted diluted earnings per share guidance"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-27T10:35:17.697Z","global_importance":35,"audience_relevance":40,"importance_components":{"tickerTier":"S&P 500 / Dividend Aristocrat","eventGravity":"Earnings with Guidance Raise","sectorWeight":"Consumer Staples"}},"durationMs":93990,"modelName":"glm-4.7"}}