HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS

HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS

PR Newswire

AUSTIN, Minn., Aug. 27, 2026

Company Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third Quarter and Strong Year-to-Date PerformanceAUSTIN, Minn., Aug. 27, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the third quarter of fiscal 2026, which ended July 26, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.

EXECUTIVE SUMMARY — THIRD QUARTERNet sales of $2.96 billion; organic net sales1 down 2%Operating income of $111 million; adjusted operating income1 of $266 millionOperating margin of 3.7%; adjusted operating margin1 of 9.0%Earnings before income taxes of $103 million; adjusted earnings before income taxes1 of $258 millionDiluted earnings per share of $0.11; adjusted diluted earnings per share1 of $0.37Cash flow from operations of $241 millionEXECUTIVE COMMENTARY"We delivered solid third quarter results, growing our adjusted earnings and continuing to advance our fiscal 2026 objectives," said Jeff Ettinger, interim chief executive officer. "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.""We continued to make progress against our strategic priorities during the quarter," said John Ghingo, president and chief executive officer-elect. "While net sales declined, the results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure. At the same time, several of our Retail priority brands delivered growth, and Foodservice once again outperformed industry trends, supported by the strength of our solutions-based offerings and operator partnerships. As we continue to enhance our capabilities and sharpen our focus, we remain committed to disciplined execution and positioning the company for long-term success."FULL YEAR FISCAL 2026 GUIDANCEFor fiscal 2026, the Company:Expects net sales to be in the range of $12.1 billion to $12.2 billion, reflecting organic net sales1 growth of 1% to 2%Updates operating income guidance to be in the range of $0.83 billion to $0.87 billion, which includes the estimated loss related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia, and a litigation settlementRaises adjusted operating income1 guidance to be in the range of $1.08 billion to $1.12 billion, reflecting growth of 6% to 10%Updates diluted earnings per share guidance to be in the range of $1.06 to $1.12Raises adjusted diluted earnings per share1 guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%UpdatedPreviousNet Sales$12.1 - $12.2 billion$12.2 - $12.5 billionOrganic Net Sales1 Growth Rate1% - 2%1% - 4%Diluted Earnings per Share$1.06 - $1.12$1.28 - $1.37Adj. Diluted Earnings per Share1$1.45 - $1.51$1.43 - $1.51PORTFOLIO SHAPINGDuring the third quarter of fiscal 2026, the Company announced a definitive agreement to sell its Brazil operations, operated under the Ceratti® brand, and classified the business as held for sale. The divestiture reflects the Company's ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.The transaction successfully closed in the early part of the fourth quarter of fiscal 2026. The expected impacts of the divestiture are reflected in the Company's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter of fiscal 2026, the impact of the divestiture will be excluded from year-over-year comparisons in the Company's non-GAAP organic volume¹ and organic net sales¹ metrics.SEGMENT HIGHLIGHTS – THIRD QUARTERRetailVolume down 9%; organic volume1 down 9%Net sales down 4%; organic net sales1 down 3%Segment profit down 4%Organic net sales1 decreased in the third quarter of fiscal 2026, as declines in commodity turkey and private label snack nuts were partially offset by strong performance in value-added turkey offerings, contract manufacturing and Planters® snack nuts. Additional priority brands that delivered solid growth during the quarter include the SPAM® family of products, Applegate® natural and organic meats, and Hormel® chili. Segment profit decreased for the third quarter of fiscal 2026, as lower net sales and higher logistics expenses were partially offset by lower selling, general and administrative expenses.FoodserviceVolume down 1%; organic volume1 down 1%Net sales up 2%; organic net sales1 up 2%Segment profit up 3%The third quarter of fiscal 2026 marked the 12th consecutive quarter of organic net sales1 growth for the Foodservice segment. Organic net sales¹ growth was broad-based despite the impact of lower commodity-based pricing in portions of the portfolio. Growth was driven by multiple product groups and categories, led by significant contributions from premium prepared proteins, branded pepperoni and Jennie-O® turkey. Additional branded products, including Austin Blues® smoked meats, Hormel® Natural Choice® meats and Hormel® Fire Braised™ meats, also delivered strong net sales results. Segment profit increased for the third quarter of fiscal 2026, as higher net sales and favorable pork input costs were partially offset by higher logistics and selling, general and administrative expenses.InternationalVolume down 11%; organic volume1 down 11%Net sales down 5%; organic net sales1 down 4%Segment profit down 254%; adjusted segment profit1 flatFor the International segment, organic net sales¹ declined in the third quarter of fiscal 2026. While branded export demand remained resilient during the quarter, the recognition of certain SPAM® export sales was adversely impacted due to a one-time legal-entity transition. Segment profit was significantly impacted by a non-cash impairment charge. Adjusted segment profit1 was comparable to the prior year, as minority investment performance offset weaker results in Brazil.ADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026Income StatementOperating margin and adjusted operating margin1 were 3.7% and 9.0%, respectively, compared to 7.9% and 8.4%, respectively, in the prior year.Selling, general and administrative expenses as a percent of net sales and adjusted selling, general and administrative expenses as a percent of net sales1 were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%, respectively, in the prior year.Advertising investments were $34 million, compared to $41 million last year.Significant discrete pre-tax items included: a loss of $56 million related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia of $48 million and a litigation settlement of $38 million.The effective tax rate was 42.3%, compared to 22.3% last year, and was significantly impacted by one-time items.Cash Flow StatementCash flow from operations was $241 million, an increase of 54% compared to the prior year.Capital expenditures were $68 million, compared to $72 million last year. The largest projects in the third quarter of fiscal 2026 were related to infrastructure enhancements and investments in data and technology.Depreciation and amortization expense was $66 million, compared to $65 million last year.The Company returned $161 million to stockholders during the quarter through dividends.Balance SheetThe Company remained in a strong financial position at quarter end, with ample liquidity and a conservative level of debt.Cash on hand, excluding assets held for sale, was $840 million at quarter end, an increase of $169 million from the end of fiscal 2025.Inventories were $1.8 billion at quarter end, an increase of $54 million from the end of fiscal 2025.PRESENTATIONA conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983 (international) and providing the conference ID 915 330 197. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Aug. 27, 2026, and will remain on the website for one year.ABOUT HORMEL FOODSHormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.FORWARD-LOOKING STATEMENTSThis news release contains forward-looking statements, which are based on the Company's current assumptions and expectations. These statements are typically accompanied by the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "target," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding the Company's fiscal 2026 guidance and future financial and operational performance.All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors that could cause the Company's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and the Company's recent corporate restructuring plan; risk of unfavorable changes in the Company's relationships with third parties; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyberattacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products; risks related to the Company's ability to respond to changing consumer preferences; damage to the Company's reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at hormelfoods.com in the "Investors" section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company's business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement except as otherwise required by law.Note: Due to rounding, numbers presented throughout this press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.END NOTESNon-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.INVESTOR CONTACTJess Blombergir@hormel.com MEDIA CONTACTLaura Cederbergmedia@hormel.com HORMEL FOODS CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONSIn thousands, except per share amountsUnauditedQuarter EndedNine Months EndedJuly 26, 2026July 27, 2025July 26, 2026July 27, 2025Net Sales$ 2,961,333$ 3,032,876$ 8,961,250$ 8,920,499Cost of Products Sold2,489,8182,545,5677,501,6537,473,524Gross Profit471,515487,3091,459,5971,446,975Selling, General, and Administrative323,501258,713883,822773,158Equity in Earnings of Affiliates(37,110)11,153(4,061)42,614Operating Income110,904239,748571,713716,430Interest Income6,6614,87719,66718,596Interest Expense19,63519,46159,18558,438Other Income (Expense), Net5,22711,35011,3368,488Earnings Before Income Taxes103,157236,514543,531685,076Provision for Income Taxes43,63852,818144,865151,107Effective Tax Rate42.3 %22.3 %26.7 %22.1 %Net Earnings59,519183,696398,666533,968Less: Net Earnings (Loss) Attributable to Noncontrolling Interest(55)(46)(182)(366)Net Earnings Attributable to Hormel Foods Corporation$ 59,573$ 183,742$ 398,848$ 534,334Net Earnings Per Share:Basic$ 0.11$ 0.33$ 0.72$ 0.97Diluted$ 0.11$ 0.33$ 0.72$ 0.97Weighted-average Shares Outstanding:Basic550,675550,408550,572550,048Diluted551,074550,723550,898550,396Dividends Declared Per Share$ 0.2925$ 0.2900$ 0.8775$ 0.8700HORMEL FOODS CORPORATIONCONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITIONIn thousandsUnauditedJuly 26, 2026October 26, 2025AssetsCash and Cash Equivalents$ 839,639$ 670,679Short-term Marketable Securities28,80732,909Accounts and Other Receivables, Net733,460813,989Inventories1,801,5671,747,279Taxes Receivable58,68896,791Prepaid Expenses and Other Current Assets53,42044,010Assets Held for Sale10,659—Total Current Assets3,526,2383,405,656Goodwill4,867,7634,924,087Intangible Assets1,572,8501,647,297Pension Assets204,135211,826Investments in Affiliates527,864533,984Other Assets430,139431,500Property, Plant, and Equipment, Net2,163,0252,238,770Total Assets$ 13,292,014$ 13,393,119Liabilities and Shareholders' InvestmentAccounts Payable & Accrued Expenses$ 771,154$ 787,350Accrued Marketing Expenses133,313113,947Employee-related Expenses250,072273,402Interest and Dividends Payable175,646180,700Taxes Payable10,69018,752Current Maturities of Long-term Debt505,6346,646Liabilities Held for Sale27,483—Total Current Liabilities1,873,9911,380,796Long-term Debt Less Current Maturities2,349,4892,850,778Pension and Postretirement Benefits351,174358,984Deferred Income Taxes653,360661,349Other Long-term Liabilities204,345225,397Accumulated Other Comprehensive Loss(236,907)(243,646)Other Shareholders' Investment8,096,5618,159,461Total Liabilities and Shareholders' Investment$ 13,292,014$ 13,393,119HORMEL FOODS CORPORATIONCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWSIn thousandsUnauditedQuarter EndedNine Months EndedJuly 26, 2026July 27, 2025July 26, 2026July 27, 2025Operating ActivitiesNet Earnings$ 59,519$ 183,696$ 398,666$ 533,968Depreciation and Amortization66,42764,692202,348194,527Equity in Earnings of Affiliates37,110(11,153)4,061(42,614)Loss (Gain) on Divestitures57,379—94,08510,800Decrease (Increase) in Working Capital, Net of Divestitures(2,174)(95,844)111(255,011)Other22,33915,30769,48180,674Net Cash Provided by (Used in) Operating Activities240,599156,698768,752522,345Investing ActivitiesNet Sale (Purchase) of Securities3,498(1,434)3,372(6,170)Proceeds from Sale of Business(2,979)—97,05613,139Purchases of Property, Plant, and Equipment(68,163)(72,194)(219,331)(219,444)Proceeds from (Purchases of) Affiliates and Other Investments—(584)(5,316)(3,283)Other6,1197,89011,95210,767Net Cash Provided by (Used in) Investing Activities(61,526)(66,323)(112,267)(204,991)Financing ActivitiesRepayments of Long-term Debt and Finance Leases(1,773)(2,005)(5,425)(6,250)Dividends Paid on Common Stock(160,963)(159,467)(481,401)(473,692)Other(283)(1,784)(1,609)24,057Net Cash Provided by (Used in) Financing Activities(163,019)(163,256)(488,435)(455,884)Effect of Exchange Rate Changes on Cash1,2912,3815,368(4,161)Increase (Decrease) in Cash, Cash Equivalents, and Cash Held for Sale17,345(70,499)173,417(142,692)Cash, Cash Equivalents, and Cash Held for Sale at Beginning of Period826,750669,688670,679741,881Cash, Cash Equivalents, and Cash Held for Sale at End of Period844,095599,189844,095599,189Less: Cash Held for Sale4,457—4,457—Cash and Cash Equivalents at End of Period$ 839,639$ 599,189$ 839,639$ 599,189HORMEL FOODS CORPORATIONSEGMENT DATAIn thousandsUnauditedQuarter EndedNine Months EndedJuly 26, 2026July 27, 2025% ChangeJuly 26, 2026July 27, 2025% ChangeVolume (lbs.)Retail648,340712,912(9.1)2,005,2332,127,075(5.7)Foodservice244,830248,540(1.5)733,557734,988(0.2)International75,90885,138(10.8)231,905239,225(3.1)Total Volume (lbs.)969,0781,046,590(7.4)2,970,6953,101,288(4.2)Net SalesRetail$ 1,779,434$ 1,858,434(4.3)$ 5,416,905$ 5,532,401(2.1)Foodservice1,003,158986,9761.62,998,0962,853,6035.1International178,740187,466(4.7)546,249534,4952.2Total Net Sales$ 2,961,333$ 3,032,876(2.4)$ 8,961,250$ 8,920,4990.5Segment ProfitRetail$ 118,073$ 122,566(3.7)$ 369,902$ 378,847(2.4)Foodservice144,475140,7112.7456,800420,1708.7International(29,233)18,941(254.3)15,81258,193(72.8)Total Segment Profit233,316282,218(17.3)842,515857,210(1.7)Net Unallocated Expense130,10445,658185.0298,802171,76974.0Noncontrolling Interest(55)(46)(20.4)(182)(366)50.2Earnings Before Income Taxes$ 103,157$ 236,514(56.4)$ 543,531$ 685,076(20.7)APPENDIX: NON-GAAP MEASURESThis press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company's results and business trends relative to past performance and the Company's competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.Transform and Modernize (T&M) InitiativeIn the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are nonrecurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that nonrecurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.Gain or Loss on DivestituresAs part of its ongoing portfolio management activities, the Company may periodically divest certain businesses to better align its portfolio with its strategic objectives and long-term growth strategy. The Company believes the one-time impacts from these transactions, including transaction costs, are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts. Transactions affecting comparability include the Brazil transaction, the whole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain Prairie, LLC divestiture.Corporate Restructuring PlanIn the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company's future needs, while enabling continued investment in the Company's growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes certain charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.Consulting AgreementOn October 27, 2025, the Company entered into a consulting agreement (Consulting Agreement) with its former Chief Executive Officer (CEO), pursuant to which the former CEO is expected to provide consulting services to the Company until April 2027. Consulting costs related to the Consulting Agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes nonrecurring costs associated with the Consulting Agreement are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods; therefore, the Company is excluding these discrete costs.Legal MattersFrom time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.Litigation SettlementsIn the third quarter of fiscal 2026, the Company executed a settlement agreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the Company entered into a settlement agreement with certain plaintiffs in an antitrust lawsuit.ImpairmentsIn the third quarter of fiscal 2026, the Company recorded a non-cash impairment charge related to a minority investment in Indonesia. The Company believes these charges are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts.The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.HORMEL FOODS CORPORATIONRECONCILIATION OF NON-GAAP MEASURESUnauditedQuarter EndedNine Months EndedIn thousands, except per share amountsJuly 26, 2026July 27, 2025July 26, 2026July 27, 2025Cost of Products Sold (GAAP)$ 2,489,818$ 2,545,567$ 7,501,653$ 7,473,524Transform and Modernize Initiative(1)(447)(1,010)(2,222)(3,973)Adjusted Cost of Products Sold (Non-GAAP)$ 2,489,371$ 2,544,557$ 7,499,431$ 7,469,551SG&A (GAAP)$ 323,501$ 258,713$ 883,822$ 773,158Transform and Modernize Initiative(2)(11,792)(13,485)(36,448)(41,228)Gain (Loss) on Divestitures(57,379)—(94,911)(11,324)Corporate Restructuring Plan26—(8,505)—Consulting Agreement——(7,775)—Litigation Settlements(37,500)—(37,500)(240)Adjusted SG&A (Non-GAAP)$ 216,856$ 245,228$ 698,684$ 720,366Equity in Earnings of Affiliates (GAAP)$ (37,110)$ 11,153$ (4,061)$ 42,614Impairments48,218—48,218—Adjusted Equity in Earnings of Affiliates (Non-GAAP)$ 11,109$ 11,153$ 44,157$ 42,614Operating Income (GAAP)$ 110,904$ 239,748$ 571,713$ 716,430Transform and Modernize Initiative(1)(2)12,23914,49638,66945,202(Gain) Loss on Divestitures57,379—94,91111,324Corporate Restructuring Plan(26)—8,505—Consulting Agreement——7,775—Litigation Settlements37,500—37,500240Impairments48,218—48,218—Adjusted Operating Income (Non-GAAP)$ 266,215$ 254,244$ 807,292$ 773,196Earnings Before Income Taxes (GAAP)$ 103,157$ 236,514$ 543,531$ 685,076Transform and Modernize Initiative(1)(2)12,23914,49638,66945,202(Gain) Loss on Divestitures57,379—94,91111,324Corporate Restructuring Plan(26)—8,505—Consulting Agreement——7,775—Litigation Settlements37,500—37,500240Impairments48,218—48,218—Adjusted Earnings Before Income Taxes (Non-GAAP)$ 258,467$ 251,010$ 779,110$ 741,842Provision for Income Taxes (GAAP)$ 43,638$ 52,818$ 144,865$ 151,107Transform and Modernize Initiative(1)(2)2,9993,2339,4749,960(Gain) Loss on Divestitures303—4,5252,469Corporate Restructuring Plan(6)—2,084—Consulting Agreement————Litigation Settlements9,188—9,18852Impairments————Adjusted Provision for Income Taxes (Non-GAAP)$ 56,120$ 56,051$ 170,136$ 163,588Net Earnings Attributable to Hormel Foods Corporation (GAAP)$ 59,573$ 183,742$ 398,848$ 534,334Transform and Modernize Initiative(1)(2)9,24111,26329,19535,242(Gain) Loss on Divestitures57,076—90,3868,855Corporate Restructuring Plan(20)—6,421—Consulting Agreement——7,775—Litigation Settlements28,313—28,313188Impairments48,218—48,218—Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP)$ 202,402$ 195,005$ 609,156$ 578,620Diluted Earnings Per Share (GAAP)$ 0.11$ 0.33$ 0.72$ 0.97Transform and Modernize Initiative(1)(2)0.020.020.050.06(Gain) Loss on Divestitures0.10—0.160.02Corporate Restructuring Plan——0.01—Consulting Agreement——0.01—Litigation Settlements0.05—0.05—Impairments0.09—0.09—Adjusted Diluted Earnings Per Share (Non-GAAP)$ 0.37$ 0.35$ 1.11$ 1.05SG&A as a Percent of Net Sales (GAAP)10.9 %8.5 %9.9 %8.7 %Transform and Modernize Initiative(2)(0.4)(0.4)(0.4)(0.5)Gain (Loss) on Divestitures(1.9)—(1.1)(0.1)Corporate Restructuring Plan——(0.1)—Consulting Agreement——(0.1)—Litigation Settlements(1.3)—(0.4)—Adjusted SG&A as a Percent of Net Sales (Non-GAAP)7.3 %8.1 %7.8 %8.1 %Operating Margin (GAAP)3.7 %7.9 %6.4 %8.0 %Transform and Modernize Initiative(1)(2)0.40.50.40.5(Gain) Loss on Divestitures1.9—1.10.1Corporate Restructuring Plan——0.1—Consulting Agreement——0.1—Litigation Settlements1.3—0.4—Impairments1.6—0.5—Adjusted Operating Margin (Non-GAAP)9.0 %8.4 %9.0 %8.7 %(1) Comprised primarily of costs related to supply chain and portfolio optimization.(2) Comprised primarily of project-based external consulting fees.ADJUSTED SEGMENT PROFIT (NON-GAAP)Quarter EndedJuly 26, 2026July 27, 2025In thousandsGAAPNon-GAAP Adjustments(1)Non-GAAPGAAPNon-GAAP Adjustments(2)Non-GAAPSegment Profit (Loss)Retail$ 118,073$ —$ 118,073$ 122,566$ —$ 122,566Foodservice144,475—144,475140,711—140,711International(29,233)48,21818,98518,941—18,941Total Segment Profit (Loss)233,31648,218281,534282,218—282,218Net Unallocated Expense130,104(107,092)23,01245,658(14,496)31,162Noncontrolling Interest(55)—(55)(46)—(46)Earnings Before Income Taxes$ 103,157$ 155,310$ 258,467$ 236,514$ 14,496$ 251,010(1)International segment profit (loss) adjustments in the third quarter of fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, an unfavorable litigation settlement, nonrecurring T&M initiative costs, and corporate restructuring plan charges.(2)Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were comprised of nonrecurring T&M initiative costs.Nine Months EndedJuly 26, 2026July 27, 2025In thousandsGAAPNon-GAAP Adjustments(1)Non-GAAPGAAPNon-GAAP Adjustments(2)Non-GAAPSegment Profit (Loss)Retail$ 369,902$ —$ 369,902$ 378,847$ —$ 378,847Foodservice456,800—456,800420,170—420,170International15,81248,21864,03158,193—58,193Total Segment Profit (Loss)842,51548,218890,734857,210—857,210Net Unallocated Expense298,802(187,360)111,442171,769(56,766)115,003Noncontrolling Interest(182)—(182)(366)—(366)Earnings Before Income Taxes$ 543,531$ 235,578$ 779,110$ 685,076$ 56,766$ 741,842(1)International segment profit (loss) adjustments in the first nine months of fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, nonrecurring T&M initiative costs, an unfavorable litigation settlement, corporate restructuring plan charges, and Consulting Agreement costs.(2)Net Unallocated Expense adjustments in the first nine months of fiscal 2025 were comprised of nonrecurring T&M initiative costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable litigation settlement.ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of the Company's controlling equity interest in Justin's, LLC in the first quarter of fiscal 2026.Quarter EndedJuly 26, 2026July 27, 2025In thousandsGAAPGAAPDivestitureNon-GAAP OrganicNon-GAAP% ChangeVolume (lbs.)Retail648,340712,912(3,540)709,372(8.6)Foodservice244,830248,540(346)248,194(1.4)International75,90885,138(68)85,071(10.8)Total Volume (lbs.)969,0781,046,590(3,953)1,042,637(7.1)Net SalesRetail$ 1,779,434$ 1,858,434$ (19,052)$ 1,839,382(3.3)Foodservice1,003,158986,976(1,856)985,1201.8International178,740187,466(520)186,947(4.4)Total Net Sales$ 2,961,333$ 3,032,876$ (21,427)$ 3,011,449(1.7)Nine Months EndedJuly 26, 2026July 27, 2025In thousandsGAAPGAAPDivestitureNon-GAAP OrganicNon-GAAP% ChangeVolume (lbs.)Retail2,005,2332,127,075(8,605)2,118,469(5.3)Foodservice733,557734,988(724)734,264(0.1)International231,905239,225(117)239,109(3.0)Total Volume (lbs.)2,970,6953,101,288(9,446)3,091,842(3.9)Net SalesRetail$ 5,416,905$ 5,532,401$ (45,526)$ 5,486,876(1.3)Foodservice2,998,0962,853,603(4,100)2,849,5035.2International546,249534,495(1,190)533,3052.4Total Net Sales$ 8,961,250$ 8,920,499$ (50,815)$ 8,869,6841.0FORWARD-LOOKING GAAP TO NON-GAAP MEASURESThe information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale of the Justin's® branded business in the first quarter of fiscal 2026 and the sale of its Brazil operations in the fourth quarter of fiscal 2026.In billionsFiscal 2026 Outlook2025 ResultsChangeNet Sales (GAAP) $ 12.1-$ 12.2$ 12.10 %-1 %Divestitures—-—(0.1)Organic Net Sales (Non-GAAP)$ 12.1-$ 12.2$ 12.01 %-2 %Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.In fiscal 2026, the Company expects:Operating income (GAAP) in the range of $826 million to $869 millionAdjustments for gains and losses on divestitures of $94.9 millionAdjustments for the T&M initiative of $49.0 million to $52.0 millionAdjustment for a non-cash impairment of $48.2 millionAdjustment for a litigation settlement of $37.5 millionAdjustments for corporate restructuring plan-related charges of $8.5 millionAdjustment for the Consulting Agreement of $7.8 millionResulting in an adjusted operating income range (non-GAAP) of $1,075 million to $1,115 million.Fiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a non-GAAP measure that excludes items impacting comparability.In fiscal 2026, the Company expects:Diluted earnings per share (GAAP) in the range of $1.06 to $1.12Adjustments for gains and losses on divestitures of $0.16Adjustment for a non-cash impairment of $0.09Adjustments for the T&M initiative of $0.07Adjustment for a litigation settlement of $0.05Adjustments for corporate restructuring plan-related charges of $0.01Adjustment for the Consulting Agreement of $0.01Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45 to $1.51.