Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Hormel Foods reported a modest revenue increase of ~1.7% in Q2 2026, but net income fell 3.2% to $339.3M as higher SG&A costs and operating expenses pressured margins despite strong operating cash flow growth of 44.4%.
Cost of Revenue
$2.45B
+1.64% YoY
EPS (Diluted)
$0.29
-12.12% YoY
Operating Income
$217.11M
-12.58% YoY
Source: SEC XBRL
Hormel Foods (HRL) reported Q2 FY2026 revenue of $2.45B, up 1.6% year over year. HRL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.40 | 0.36 | Beat +11.0% |
| Mar 2026 | 0.34 | 0.32 | Beat +4.8% |
| Dec 2025 | 0.32 | 0.30 | Beat +5.0% |
| Sep 2025 | 0.35 | 0.41 | Miss -15.3% |
Adjusted (non-GAAP) EPS of $0.40 versus the $0.36 analyst consensus — a +11.0% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.29.
Compiled by AI from this SEC filing
Total cost of revenue rose 1.7% YoY to $5.01B, while gross profit grew 3.0% YoY to $988.1M, suggesting modest top-line expansion and slight improvement in production efficiency or product mix.
Source: 10-Q Income Statement Data
SG&A expenses surged 8.9% YoY to $560.3M, significantly outpacing gross profit growth of 3.0%, which drove operating income down 3.3% YoY to $460.8M and compressed operating margins.
Source: 10-Q Income Statement Data
Net income declined 3.2% YoY to $339.3M, and both basic and diluted EPS fell from $0.64 to $0.62, reflecting the impact of elevated operating costs on bottom-line profitability.
Source: 10-Q Income Statement Data
Operating cash flow surged 44.4% YoY to $528.2M, a significant improvement from $365.6M in the prior year period, indicating better working capital management and cash conversion despite lower net income.
Source: 10-Q Cash Flow Statement Data
Long-term debt decreased 17.5% YoY to $2.35B, while cash and equivalents grew 23.5% to $826.8M, reflecting a strengthened balance sheet and improved financial flexibility.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
SG&A expenses increased 8.9% YoY to $560.3M, growing nearly three times faster than gross profit. If this trend continues, operating margins will face sustained pressure, potentially eroding profitability even if top-line growth continues.
Source: 10-Q Income Statement Data
Current liabilities jumped 35.8% YoY to $1.80B, significantly outpacing the 6.4% growth in current assets. While the current ratio remains above 1.9x, the rapid increase in short-term obligations warrants monitoring for potential liquidity stress.
Source: 10-Q Balance Sheet Data
Stockholders' equity fell 1.0% YoY to $7.95B, and with ROE at approximately 4.3%, returns to shareholders remain modest. Continued net income pressure could further erode equity value over time.
Source: 10-Q Balance Sheet & Ratio Data
Cost of revenue rose 1.7% YoY to $5.01B, reflecting ongoing input cost pressures in the food manufacturing sector. If commodity or supply chain costs accelerate, gross margins could come under additional pressure.
Source: 10-Q Income Statement Data
ROA stands at approximately 2.54%, indicating relatively low efficiency in generating profits from the company's $13.3B asset base. This may reflect underutilization of assets or structural cost challenges that could limit long-term value creation.
Source: 10-Q Balance Sheet & Ratio Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 2.45 $B | 2.41 $B | +1.64% |
Gross Profit $M | 518.51 $M | 484.43 $M | +7.03% |
Operating Income $M | 217.11 $M | 248.35 $M | -12.58% |
Net Income $M | 157.47 $M | 180.02 $M | -12.52% |
EPS (Basic) $ | 0.29 $ | 0.33 $ | -12.12% |
EPS (Diluted) $ | 0.29 $ | 0.33 $ | -12.12% |
SG&A Expense $M | 318.62 $M | 251.43 $M | +26.72% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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