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
Third-quarter fiscal 2026 for Hormel Foods was defined by a wide gap between reported and adjusted results as management absorbed significant one-time charges. Management attributed the GAAP earnings decline to a $155 million pre-tax impact from the Brazil divestiture, an Indonesian minority-investment impairment, and a litigation settlement, while adjusted diluted EPS rose 6% year over year. Total net sales decreased on lower volume, with growth in Foodservice partially offsetting declines in Retail and International. Adjusted SG&A fell to 7.3% of net sales, reflecting lower employee-related expenses and reduced advertising. Cash from operations increased sharply on improved inventory management and working capital.
Cost of Revenue
$2.49B
-2.19% YoY
EPS (Diluted)
$0.11
-66.67% YoY
Operating Income
$110.9M
-53.74% YoY
Source: SEC XBRL
Hormel Foods (HRL) reported Q3 FY2026 revenue of $2.49B, down 2.2% year over year. HRL's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 0.37 | 0.36 | Beat +3.7% |
| Jun 2026 | 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% |
Adjusted (non-GAAP) EPS of $0.37 versus the $0.36 analyst consensus — a +3.7% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.11.
3 reported segments · SEC XBRL
Segment revenue totals $2.96B, which is the $2.96B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Adjusted diluted EPS was $0.37, up 5.7% from $0.35 a year earlier, while GAAP diluted EPS fell 66.7% to $0.11. The difference reflects $155 million in pre-tax nonrecurring items and discrete charges.
Source: 10-Q Item 2 MD&A
Pre-tax nonrecurring expenses and discrete items included a $56 million Brazil divestiture loss, a $48 million non-cash impairment of a minority investment in Indonesia, a $38 million litigation settlement, and Transform and Modernize initiative costs.
Source: 10-Q Item 2 MD&A
Foodservice segment profit increased 2.7% on broad-based organic net sales growth, driven by premium prepared proteins, branded pepperoni, and Jennie-O turkey, with favorable pork input costs partially offset by higher logistics and SG&A.
Source: 10-Q Item 2 MD&A
Retail organic net sales declined due to commodity turkey and the strategic exit from select non-core private label snack nuts items, though value-added turkey, contract manufacturing, and brands like SPAM, Applegate, and Hormel chili delivered growth.
Source: 10-Q Item 2 MD&A
Cash from operations rose 47% to $769 million year-to-date, as inventory increased only $81 million versus $247 million a year earlier, and receivables declined $86 million. The company also raised its quarterly dividend 1% to $0.2925 per share.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
Net income fell 67.6% year over year to $59.6 million in Q3 FY2026, and operating income declined 53.7%, driven by $155 million in one-time charges and a $29.2 million International segment loss. These items indicate potential for continued earnings volatility.
Source: 10-Q Income Statement (XBRL)
SG&A expense increased 25.0% year over year to $323.5 million, and SG&A as a percent of net sales rose to 10.9% from 8.5%. Gross margin narrowed to 15.9%, pushing operating margin down to 3.7% and signaling profitability pressure.
Source: 10-Q Income Statement (XBRL)
Retail net sales declined 4.3% and segment profit fell 3.7%, while Foodservice sales grew 1.6% and profit rose 2.7%. With Retail accounting for 60.1% of segment revenue, continued weakness there could offset Foodservice gains.
Source: 10-Q Segment Reporting (XBRL)
Current liabilities increased 39.3% year over year to $1.87 billion, outpacing a 6.1% rise in current assets, though the current ratio remains a healthy 1.88. Rapid growth in near-term obligations could strain liquidity if not managed carefully.
Source: 10-Q Balance Sheet (XBRL)
Cost of products sold declined only 2.2% despite lower volume, as higher beef input costs and logistics expenses offset favorable pork costs. Per-pound cost of products sold increased, indicating ongoing commodity cost volatility that could pressure margins.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 2.49 $B | 2.55 $B | -2.19% |
Gross Profit $M | 471.52 $M | 487.31 $M | -3.24% |
Operating Income $M | 110.90 $M | 239.75 $M | -53.74% |
Net Income $M | 59.57 $M | 183.74 $M | -67.58% |
EPS (Basic) $ | 0.11 $ | 0.33 $ | -66.67% |
EPS (Diluted) $ | 0.11 $ | 0.33 $ | -66.67% |
SG&A Expense $M | 323.50 $M | 258.71 $M | +25.04% |
Answers draw on this SEC filing and the data on this page
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%.
Hormel Foods (HRL) delivered solid Q1 FY2026 results with net income rising 6.6% YoY to $181.8M, driven by a significant 8.1% reduction in SG&A expenses and strong operating cash flow growth of 12.9%, despite a modest 1.2% decline in gross profit.
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