Hormel Foods Reports $3 Billion in Q1 Net Sales with 2% Organic Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy HRL?
Source: PRnewswire
- Q1 Performance: Hormel Foods reported net sales of $3.03 billion for Q1, reflecting a 1.3% year-over-year increase, demonstrating the company's strong performance in value-added and protein-centric product lines despite rising raw material costs.
- Earnings Per Share: The company reported an adjusted diluted EPS of $0.34, up from $0.31 in the prior year, indicating effective pricing strategies and market execution that bolster investor confidence in the company's financial health.
- Fiscal 2026 Guidance: Hormel updated its fiscal 2026 net sales guidance to a range of $12.2 to $12.5 billion, although the anticipated sale of the whole-bird turkey business is expected to reduce sales by approximately $50 million, the overall growth outlook remains positive.
- Strategic Restructuring: The company is undergoing strategic restructuring by divesting the Justin's brand and the whole-bird turkey business to focus on high-growth value-added protein products, which is expected to enhance market competitiveness and resource allocation efficiency.
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Analyst Views on HRL
Wall Street analysts forecast HRL stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 23.880
Low
26.00
Averages
27.40
High
30.00
Current: 23.880
Low
26.00
Averages
27.40
High
30.00
About HRL
Hormel Foods Corporation is a global-branded food company. The Company develops, processes, and distributes a range of food products in a variety of markets. Its segments include Retail, Foodservice, and International. The Retail segment is primarily engaged in the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the Company’s MegaMex Foods, LLC joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to foodservice, convenience store, and commercial customers located in the United States. The International segment processes, markets, and sells its products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements. It has a global presence within several major international markets, including Australia, Brazil, Canada, China, and England.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Business Divestiture: The company has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, which is expected to reduce net sales by approximately $50 million in fiscal 2026, aimed at decreasing reliance on volatile commodity-driven businesses and sharpening focus on value-added protein products.
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- Optimistic Outlook: The company reaffirmed its adjusted full-year fiscal 2026 guidance for organic net sales growth of 1% to 4% and adjusted diluted EPS in the range of $1.43 to $1.51, with management expressing confidence in growth prospects for the upcoming quarters despite challenges from logistics and commodity costs.
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- Focus on Performance Discussion: The call will emphasize the financial results for the first quarter, including revenue, profit, and future outlook, assisting investors in assessing the company's financial health and market performance.
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See More
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- Chicken Price Increase: Trump asserted that chicken prices are much lower than when he took office, but data reveals that the average price for boneless chicken breast in January was $4.17 per pound, up 1% from the previous year, reflecting subtle market dynamics.
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