Food Products
Price
$25.00
+0.48%Market Cap
$13.76B
Day High
$25.14
Day Low
$24.64
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%.
Key risk: Rising SG&A Expenses Compressing Margins
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.
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