Hormel Q3 FY26: sales slip 2.4%, charges crush GAAP EPS to $0.11
Hormel's fiscal 2026 third quarter was two quarters in one report: GAAP net income of $59.57 million, or $0.11 per share, against adjusted diluted EPS of $0.37, with a Brazil divestiture loss, an Indonesia impairment and a litigation settlement doing the damage. Sales fell 2.4% to $2.96 billion, and the company cut GAAP EPS guidance while raising adjusted EPS guidance.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $0.11 came in far below last year's $0.33, largely because of a $56 million Brazil divestiture loss, a $48 million non-cash impairment on an Indonesian minority investment and a $38 million litigation settlement. The effective tax rate jumped to 42.3% from 22.3% on those one-time items. Adjusted EPS, which strips all of that out, rose to $0.37 from $0.35.
Net sales of $2.96 billion were down 2.4% from $3.03 billion a year earlier, and organic net sales fell 2%. Retail revenue dropped 4.3% to $1.78 billion and International fell 4.7% to $178.74 million, while Foodservice grew 1.6% to $1.00 billion. That mix says the weakness is concentrated in retail volumes and commodity-linked pricing, not in the whole portfolio.
Full-year net sales guidance moved down to $12.1–$12.2 billion from $12.2–$12.5 billion, and GAAP EPS guidance dropped to $1.06–$1.12 from $1.28–$1.37. Adjusted EPS guidance was raised and narrowed to $1.45–$1.51, which management frames as 6% to 10% growth. Read together, the company is telling you reported numbers get worse while underlying earnings get better.
Log in to read 5 analyses a week for free
Create a free account to read 5 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.