Hormel Foods 10-Q 2026-01-25

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 25, 2026

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 1-2402

HORMEL FOODS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware						41-0319970
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1 Hormel Place, Austin Minnesota						55912-3680
(Address of principal executive offices)						(Zip Code)

(507) 437-5611

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class												Trading Symbol						Name of each exchange on which registered
Common Stock			$0.01465			par value						HRL						New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒						Accelerated filer			☐
Non-accelerated filer			☐						Smaller reporting company			☐
									Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class						Outstanding at February 22, 2026
Common Stock						$0.01465			par value			550,284,207
Common Stock Nonvoting						$0.01			par value			0

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION						3
Item 1.			Financial Statements			3
			Consolidated Statements of Operations			3
			Consolidated Statements of Comprehensive Income			4
			Consolidated Statements of Financial Position			5
			Consolidated Statements of Changes in Shareholders’ Investment			6
			Consolidated Condensed Statements of Cash Flows			7
			Notes to the Consolidated Financial Statements			8
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
			Results of Operations			21
			Overview			21
			Consolidated Results			22
			Segment Results			24
			Related Party Transactions			26
			Non-GAAP Measures			26
			Liquidity and Capital Resources			29
			Critical Accounting Estimates			31
			Forward-looking Statements			31
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			31
Item 4.			Controls and Procedures			32
PART II - OTHER INFORMATION						33
Item 1.			Legal Proceedings			33
Item 1A.			Risk Factors			33
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			33
Item 3.			Defaults Upon Senior Securities			33
Item 4.			Mine Safety Disclosures			33
Item 5.			Other Information			33
Item 6.			Exhibits			33
SIGNATURES						34

PART I – FINANCIAL INFORMATION

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025
Net Sales			$	3,027,317					$	2,988,813
Cost of Products Sold			2,557,742						2,513,581
Gross Profit			469,575						475,232
Selling, General, and Administrative			241,698						263,013
Equity in Earnings of Affiliates			15,820						16,111
Operating Income			243,697						228,330
Interest Income			6,528						7,543
Interest Expense			19,728						19,462
Other Income (Expense), Net			3,815						1,661
Earnings Before Income Taxes			234,312						218,073
Provision for Income Taxes			52,542						47,543
Net Earnings			181,769						170,530
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest			(32)						(45)
Net Earnings Attributable to Hormel Foods Corporation			$	181,801					$	170,575
Net Earnings Per Share:
Basic			$	0.33					$	0.31
Diluted			$	0.33					$	0.31
Weighted-average Shares Outstanding:
Basic			550,477						549,460
Diluted			550,706						549,854

See accompanying Notes to the Consolidated Financial Statements

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025
Net Earnings			$	181,769					$	170,530
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation			2,492						(27,078)
Pension and Other Benefits			1,487						2,366
Derivatives and Hedging			6,948						15,862
Equity Method Investments			(210)						473
Total Other Comprehensive Income (Loss)			10,718						(8,377)
Comprehensive Income			192,487						162,153
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest			63						(490)
Comprehensive Income Attributable to Hormel Foods Corporation			$	192,423					$	162,643

See accompanying Notes to the Consolidated Financial Statements

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Unaudited

In thousands, except share and per share amounts			January 25, 2026						October 26, 2025
Assets
Cash and Cash Equivalents			$	867,906					$	670,679
Short-term Marketable Securities			33,302						32,909
Accounts Receivable (Net of Allowance of $3,778 and $3,743, respectively)			696,252						784,812
Inventories			1,647,271						1,747,279
Taxes Receivable			58,808						96,791
Prepaid Expenses and Other Current Assets			84,702						73,187
Total Current Assets			3,388,240						3,405,656
Goodwill			4,888,532						4,924,087
Intangible Assets			1,588,104						1,647,297
Pension Assets			209,262						211,826
Investments in Affiliates			577,058						533,984
Other Assets			423,755						431,500
Property, Plant, and Equipment, Net			2,241,482						2,238,770
Total Assets			$	13,316,433					$	13,393,119
Liabilities and Shareholders’ Investment
Accounts Payable			$	670,938					$	731,578
Accrued Expenses			60,350						55,772
Accrued Marketing Expenses			129,824						113,947
Employee-related Expenses			224,470						273,402
Interest and Dividends Payable			175,868						180,700
Taxes Payable			4,983						18,752
Current Maturities of Long-term Debt			6,485						6,646
Total Current Liabilities			1,272,917						1,380,796
Long-term Debt Less Current Maturities			2,851,007						2,850,778
Pension and Postretirement Benefits			356,108						358,984
Deferred Income Taxes			663,854						661,349
Other Long-term Liabilities			219,340						225,397
Shareholders’ Investment
Preferred Stock, Par Value $0.01 a Share — Authorized 160,000,000 Shares; Issued — None			—						—
Common Stock, Nonvoting, Par Value $0.01 a

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RESULTS OF OPERATIONS

Overview

The Company is a global manufacturer and marketer of branded food products and remains focused on driving long-term growth through a balanced business model, a diverse portfolio, and a commitment to creating value for all stakeholders. The Company’s three reportable segments, Retail, Foodservice, and International, are described in Note O - Segment Reporting in the Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

The Company discloses certain measures not defined by United States (U.S.) Generally Accepted Accounting Principles (GAAP), including organic volume, organic net sales, adjusted selling, general and administrative (SG&A), adjusted SG&A as a percent of net sales, adjusted earnings before income taxes, and adjusted diluted earnings per share. The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. For additional information and reconciliations to the most closely comparable measures calculated in accordance with GAAP, see the "Non-GAAP Measures" section of this Item.

Diluted earnings per share was $0.33 for the first quarter of fiscal 2026, up 6 percent compared to the same period last year. Adjusted diluted earnings per share for the first quarter of fiscal 2026 was $0.34, down 3 percent compared to the same period last year. Significant factors impacting the quarter are listed below. All comparisons are to the same period of the prior year unless otherwise noted.

• Net sales for the first quarter of fiscal 2026 increased 1 percent. Organic net sales increased 2 percent with growth from the Foodservice and International segments and lower organic net sales from the Retail segment.

• Total segment profit for the first quarter of fiscal 2026 decreased 1 percent. Segment profit increased in both Foodservice and International and was more than offset by the decline in the Retail segment.

◦Retail segment profit declined in the first quarter of fiscal 2026, due to lower sales, higher raw material input costs, and higher logistics expenses.

◦Foodservice segment profit increased in the first quarter of fiscal 2026, driven primarily by the benefit from pricing actions.

◦International segment profit increased in the first quarter of fiscal 2026, as lower export margins were offset by lower SG&A and growth in China.

• Earnings before income taxes for the first quarter of fiscal 2026 increased 7 percent, as the benefits from higher net sales and the $23.5 million gain on the sale of our controlling equity interest in Justin's, LLC were partially offset by higher cost of products sold. Adjusted earnings before income taxes decreased 2 percent.

• The pre-tax impact of non-recurring expenses related to the Company’s Transform and Modernize (T&M) initiative, corporate restructuring plan, and a consulting agreement with a former executive (Consulting Agreement) in the first quarter of fiscal 2026 were $27.2 million, which was primarily recorded in SG&A.

• Cash flow from operations was $349 million for the first quarter of fiscal 2026, a 13 percent increase largely due to a reduction in inventory.

During the first quarter of fiscal 2026, the Company observed increased logistics costs amid a tightening of available freight capacity, largely driven by winter weather disruptions and industry dynamics. Such cost pressures contributed to higher expenses in the first quarter of fiscal 2026. If logistics costs continue to rise or remain elevated, such conditions could increase the Company’s expenses and have an adverse impact on the Company’s results of operations. The Company will continue to monitor these conditions and evaluate any potential impact on future periods.

Changes in global trade policies, including tariffs and retaliatory tariffs, had a minor impact on the Company's results of operations during the first quarter of fiscal 2026. The Company continues to monitor and evaluate the impact of proposed and enacted tariffs, including proposed and enacted retaliatory tariffs, and other trade restrictions, as well as its ability to mitigate their impacts.

Consolidated Results

Volume, Net Sales, Earnings, and Diluted Earnings Per Share

			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025						% Change
Volume (lbs.)			1,013,764						1,055,308						(3.9)
Organic Volume (lbs.)			1,013,764						1,053,805						(3.8)
Net Sales			$	3,027,317					$	2,988,813					1.3
Organic Net Sales			3,027,317						2,980,277						1.6
Net Earnings Attributable to Hormel Foods Corporation			181,801						170,575						6.6
Diluted Earnings Per Share			0.33						0.31						6.5
Adjusted Diluted Earnings Per Share			0.34						0.35						(2.9)

Volume and Net Sales

Net Sales increased for the first quarter of fiscal 2026 while volume decreased compared to the prior year.

For the first quarter of fiscal 2026, organic net sales growth across the enterprise were led by the Foodservice and International segments offset by declines in the Retail segment. Strong performance in our multinational businesses and our Foodservice customized solutions business, partially offset by the strategic exit from select non-core private label snack nut items, were the key drivers of net sales growth.

For the first quarter of fiscal 2026, organic volume increased marginally in the International segment, was comparable to the prior year in the Foodservice segment, and declined in the Retail segment, primarily driven by the strategic exit from select non-core private label snack nut items.

In fiscal 2026, the Company expects net sales growth, which assumes growth across a broad range of categories, increased brand support, and market-based pricing actions. Risks to this outlook include slowing consumer demand and commodity price fluctuations.

Cost of Products Sold

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Cost of Products Sold			$	2,557,742					$	2,513,581					1.8

Cost of products sold for the first quarter of fiscal 2026 increased, primarily due to higher logistics expenses and higher commodity input costs, mainly for beef, pork trim, and nuts.

On a per pound basis, cost of products sold for the first quarter of fiscal 2026 increased compared to the prior year.

Gross Profit

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Gross Profit			$	469,575					$	475,232					(1.2)
Percent of Net Sales			15.5		%				15.9		%

For the first quarter of fiscal 2026, gross profit as a percent of net sales declined as gross profit improvement from the Foodservice segment was more than offset by declines in Retail and International. All segments benefited from market-based pricing actions and savings generated through the Company’s T&M initiative, which were offset by inflationary pressures.

Selling, General, and Administrative (SG&A)

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
SG&A			$	241,698					$	263,013					(8.1)
Percent of Net Sales			8.0		%				8.8		%
Adjusted SG&A			$	238,412					$	237,481					0.4
Adjusted Percent of Net Sales			7.9		%				7.9		%

For the first quarter of fiscal 2026, SG&A and SG&A as a percent of net sales decreased. The gain on the sale of the controlling equity interest in Justin’s, LLC and the lapping of a loss on the sale of a non-core sow operation in fiscal 2025 were partially offset by expenses associated with the corporate restructuring plan and Consulting Agreement. Adjusted SG&A was comparable to the prior year, as a reduction in marketing and advertising was offset by higher employee-related and legal expenses.

Advertising investments in the first quarter of fiscal 2026 were $41 million, a decrease of 6 percent compared to the prior year. In fiscal 2026, the Company intends to continue investing in its priority brands and for the full-year advertising expense to increase compared to the prior year.

Equity in Earnings of Affiliates

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Equity in Earnings of Affiliates			$	15,820					$	16,111					(1.8)

Equity in earnings of affiliates for the first quarter of fiscal 2026 decreased due to the results of MegaMex Foods, LLC, which were partially offset by favorable results from international investments.

Interest Income, Interest Expense, and Other Income (Expense), Net

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Interest Income			$	6,528					$	7,543					(13.5)
Interest Expense			19,728						19,462						1.4
Other Income (Expense), Net			3,815						1,661						129.6

Interest income declined in the first quarter of fiscal 2026, primarily due to lower interest rates. Interest expense marginally increased in the first quarter. Other income increased in the first quarter of fiscal 2026, primarily attributable to lower pension costs.

Effective Tax Rate

			Quarter Ended
			January 25, 2026						January 26, 2025
Effective Tax Rate			22.4		%				21.8		%

The effective tax rate in the first quarter of fiscal 2026 was 22.4% compared to 21.8% for the prior year, primarily due to an increase in stock option expirations in the first quarter of fiscal 2026. For additional information, refer to Note M - Income Taxes of the Notes to the Consolidated Financial Statements.

The effective tax rate for fiscal 2026 is expected to be between 21.5 and 22.5 percent.

Segment Results

Net sales and segment profit for each of the Company’s reportable segments are set forth below. The Company does not allocate deferred compensation, non-recurring expenses associated with the T&M initiative, corporate restructuring plan costs, gains or losses on the sale of businesses, and interest and other income and expense to its segments when measuring performance. The Company also retains various other income and expenses at the corporate level. Equity in earnings of affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Net Sales
Retail			$	1,847,806					$	1,890,133					(2.2)
Foodservice			998,227						930,185						7.3
International			181,284						168,495						7.6
Total Net Sales			$	3,027,317					$	2,988,813					1.3
Segment Profit
Retail			$	96,190					$	119,147					(19.3)
Foodservice			156,541						138,826						12.8
International			22,910						20,845						9.9
Total Segment Profit			275,641						278,818						(1.1)
Net Unallocated Expense			41,298						60,700						(32.0)
Noncontrolling Interest			(32)						(45)						30.1
Earnings Before Income Taxes			$	234,312					$	218,073					7.4

Retail

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Volume (lbs.)			693,884						736,886						(5.8)
Organic Volume (lbs.)			693,884						735,472						(5.7)
Net Sales			$	1,847,806					$	1,890,133					(2.2)
Organic Net Sales			1,847,806						1,882,212						(1.8)
Segment Profit			96,190						119,147						(19.3)

Organic volume and organic net sales declined in the first quarter of fiscal 2026 compared to the prior year. Organic volume and organic net sales performance was significantly impacted by the strategic exit from select non-core private label snack nut items and declines in branded and private label packaged deli items. Key priority brands delivered year-over-year net sales growth, including Jennie-O® ground turkey and Planters® snack nuts.

Retail segment profit declined in the first quarter of fiscal 2026, due to lower sales, higher raw material input costs, and higher logistics expenses.

Foodservice

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Volume (lbs.)			244,419						243,853						0.2
Organic Volume (lbs.)			244,419						243,777						0.3
Net Sales			$	998,227					$	930,185					7.3
Organic Net Sales			998,227						929,679						7.4
Segment Profit			156,541						138,826						12.8

Organic net sales growth was broad-based in the Foodservice segment in the first quarter of fiscal 2026, primarily driven by strong performance across the customized solutions business, premium prepared proteins, and branded pepperoni, while organic volume was flat. Notable products such as Austin Blues® smoked meats, Hormel® Fire Braised® meats, and Hormel® Natural Choice® meats delivered strong volume and net sales growth.

Segment profit increased for the first quarter of fiscal 2026, primarily driven by the benefit of pricing actions, which remain aligned with market dynamics.

The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization, and a diverse channel presence during the first quarter of fiscal 2026.

International

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025						% Change
Volume (lbs.)			75,461						74,569						1.2
Organic Volume (lbs.)			75,461						74,556						1.2
Net Sales			$	181,284					$	168,495					7.6
Organic Net Sales			181,284						168,386						7.7
Segment Profit			22,910						20,845						9.9

For the International segment, organic volume and organic net sales grew in the first quarter of fiscal 2026. Organic net sales growth was driven by strong performance in our multinational businesses and branded exports, led by SPAM® luncheon meat.

International segment profit increased in the first quarter of fiscal 2026 largely due to lower SG&A and growth in China, which were partially offset by lower export margins.

Unallocated Income and Expense

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025
Net Unallocated Expense			$	41,298					$	60,700
Noncontrolling Interest			(32)						(45)

For the first quarter of fiscal 2026, net unallocated expense decreased due to the gain on the sale of the controlling equity interest in Justin’s, LLC, and lapping a loss on the sale of a non-core sow operation in fiscal 2025. These factors were partially offset by expenses associated with the corporate restructuring plan and Consulting Agreement.

Related Party Transactions

There has been no material change in the information regarding Related Party Transactions as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2025.

Non-GAAP Measures

This report includes measures of financial performance that are not defined by 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) Initiative

In 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 non-recurring, 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 non-recurring 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 Sale of Business

In the first quarter of fiscal 2026, the Company sold 51% of its equity interest in Justin's, LLC, resulting in a gain on the sale. In the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. The Company believes the one-time impacts from these sales 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.

Legal Matters

From 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 Settlements

In fiscal 2025, the Company entered into a settlement agreement with a plaintiff in a pending antitrust litigation. See Note K - Commitments and Contingencies of the Notes to the Consolidated Financial Statements for additional information.

Corporate Restructuring Plan

In 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 the 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. See Note P - Restructuring of the Notes to the Consolidated Financial Statements for additional information.

Consulting Agreement

On October 27, 2025, the Company entered into an 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 agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes non-recurring 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.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this Quarterly Report on Form 10-Q. 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.

			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025
Cost of Products Sold (GAAP)			$	2,557,742					$	2,513,581
Transform and Modernize Initiative(1)			(382)						(186)
Adjusted Cost of Products Sold (Non-GAAP)			$	2,557,360					$	2,513,395
SG&A (GAAP)			$	241,698					$	263,013
Transform and Modernize Initiative(2)			(10,543)						(13,968)
Gain (Loss) on Sale of Business			23,508						(11,324)
Corporate Restructuring Plan			(8,476)						—
Consulting Agreement			(7,775)						—
Litigation Settlements			—						(240)
Adjusted SG&A (Non-GAAP)			$	238,412					$	237,481
Operating Income (GAAP)			$	243,697					$	228,330
Transform and Modernize Initiative(1)(2)			10,925						14,155
(Gain) Loss on Sale of Business			(23,508)						11,324
Corporate Restructuring Plan			8,476						—
Consulting Agreement			7,775						—
Litigation Settlements			—						240
Adjusted Operating Income (Non-GAAP)			$	247,364					$	254,049
Earnings Before Income Taxes (GAAP)			$	234,312					$	218,073
Transform and Modernize Initiative(1)(2)			10,925						14,155
(Gain) Loss on Sale of Business			(23,508)						11,324
Corporate Restructuring Plan			8,476						—
Consulting Agreement			7,775						—
Litigation Settlements			—						240
Adjusted Earnings Before Income Taxes (Non-GAAP)			$	237,979					$	243,791
Provision for Income Taxes (GAAP)			$	52,542					$	47,543
Transform and Modernize Initiative(1)(2)			2,677						3,086
(Gain) Loss on Sale of Business			(5,760)						2,469
Corporate Restructuring Plan			2,077						—
Consulting Agreement			—						—
Litigation Settlements			—						52
Adjusted Provision for Income Taxes (Non-GAAP)			$	51,536					$	53,149

			Quarter Ended
In thousands, except per share amounts			January 25, 2026						January 26, 2025
Net Earnings Attributable to Hormel Foods Corporation (GAAP)			$	181,801					$	170,575
Transform and Modernize Initiative(1)(2)			8,248						11,069
(Gain) Loss on Sale of Business			(17,749)						8,855
Corporate Restructuring Plan			6,400						—
Consulting Agreement			7,775						—
Litigation Settlements			—						188
Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP)			$	186,475					$	190,687
Diluted Earnings Per Share (GAAP)			$	0.33					$	0.31
Transform and Modernize Initiative(1)(2)			0.01						0.02
(Gain) Loss on Sale of Business			(0.03)						0.02
Corporate Restructuring Plan			0.01						—
Consulting Agreement			0.01						—
Litigation Settlements			—						—
Adjusted Diluted Earnings Per Share (Non-GAAP)			$	0.34					$	0.35

			Quarter Ended
			January 25, 2026						January 26, 2025
SG&A as a Percent of Net Sales (GAAP)			8.0		%				8.8		%
Transform and Modernize Initiative(2)			(0.3)						(0.5)
Gain (Loss) on Sale of Business			0.8						(0.4)
Corporate Restructuring Plan			(0.3)						—
Consulting Agreement			(0.3)						—
Litigation Settlements			—						—
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)			7.9		%				7.9		%

(1) Comprised primarily of asset write-offs and severance related to supply chain and portfolio optimization.

(2) Comprised primarily of project-based external consulting fees.

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 Ended
			January 25, 2026									January 26, 2025
In thousands						GAAP												GAAP			Divestiture			Non-GAAP Organic			Non-GAAP % Change
Volume (lbs.)
Retail						693,884												736,886			(1,413)			735,472			(5.7)
Foodservice						244,419												243,853			(77)			243,777			0.3
International						75,461												74,569			(13)			74,556			1.2
Total Volume (lbs.)						1,013,764												1,055,308			(1,503)			1,053,805			(3.8)
Net Sales
Retail						$	1,847,806											$	1,890,133		$	(7,921)		$	1,882,212		(1.8)
Foodservice						998,227												930,185			(506)			929,679			7.4
International						181,284												168,495			(109)			168,386			7.7
Total Net Sales						$	3,027,317											$	2,988,813		$	(8,536)		$	2,980,277		1.6

LIQUIDITY AND CAPITAL RESOURCES

When assessing its liquidity and capital resources, the Company evaluates cash and cash equivalents, short-term and long-term investments, income from operations, and borrowing capacity.

Cash Flow Highlights

			Quarter Ended
In thousands			January 25, 2026						January 26, 2025
Cash and Cash Equivalents at End of Period			$	867,906					$	840,398
Cash Provided by (Used in) Operating Activities			349,214						309,206
Cash Provided by (Used in) Investing Activities			7,948						(60,333)
Cash Provided by (Used in) Financing Activities			(162,433)						(143,063)
Increase (Decrease) in Cash and Cash Equivalents			197,228						98,516

Cash and cash equivalents increased $197 million and $99 million during the first three months of fiscal 2026 and fiscal 2025, respectively. Cash provided by operating activities was sufficient to cover dividend payments and capital expenditures in both years. Additional details related to significant drivers of cash flows are provided below.

Cash Provided by (Used in) Operating Activities

• Cash flows from operating activities were impacted by changes in operating assets and liabilities.

–Inventory decreased $91 million during the first three months of fiscal 2026 compared to a decrease of $56 million in the comparable period of the prior year. The decrease in inventory during fiscal 2026 was driven by holiday sales and lower raw material markets compared to the end of fiscal 2025. The decrease in inventory during fiscal 2025 was primarily driven by holiday sales and constrained turkey inventories.

–Accounts receivable decreased $91 million and $57 million during the first three months of fiscal 2026 and fiscal 2025, respectively, primarily due to lower sales compared to the fourth quarter of each respective prior year.

–Net income taxes payable benefited from the receipt of a $38 million federal income tax refund in fiscal 2026.

–Accounts payable and accrued expenses decreased $97 million and $56 million during the first three months of fiscal 2026 and fiscal 2025, respectively. These decreases were driven by annual incentive payments and livestock and feed deferral payments, which were partially offset by higher marketing accruals. The decrease in fiscal 2026 was also due to the general timing of invoice payments.

Cash Provided by (Used in) Investing Activities

• Capital expenditures were $69 million and $72 million during the first three months of fiscal 2026 and fiscal 2025, respectively. The largest projects during fiscal 2026 were related to capacity expansion at the ambient meat snack facility in Jiaxing, China, and investments in data and technology. Significant projects during fiscal 2025 included the transition from harvest to value-added capacity for Hormel**®** Fire Braised**®** products and Applegate**®** products at the Company's facility in Barron, Wisconsin, and equipment upgrades for chili production in Beloit, Wisconsin.

• Proceeds from the sale of business were $79 million during the first three months of fiscal 2026, from the sale of the Company’s controlling equity interest in Justin's, LLC, and were $14 million in the first three months of fiscal 2025, primarily from the sale of the Company's equity interest in Mountain Prairie, LLC.

Cash Provided by (Used in) Financing Activities

• Cash dividends paid to the Company’s shareholders totaled $160 million during the first three months of fiscal 2026, compared to $155 million in the comparable period of fiscal 2025.

Sources and Uses of Cash

The Company believes its business model, with diversification across raw material inputs, channels, and categories, provides stability in ever-changing economic environments. The Company maintains a disciplined capital allocation strategy and uses a waterfall approach, which focuses first on core uses of cash, such as capital expenditures to maintain facilities, dividend returns to investors, mandatory debt repayments, and fulfillment of pension obligations. Next, the Company looks to strategic items in support of growth initiatives, such as other capital projects, acquisitions, additional dividend increases, and working capital investments. Finally, the Company evaluates opportunistic uses, including incremental debt repayment and share repurchases.

The Company believes its anticipated income from operations, cash on hand, borrowing capacity under the current unsecured revolving credit facility, and access to capital markets will be adequate to meet all short-term and long-term commitments. The Company expects to continue optimizing its portfolio through acquisitions and divestitures that align with its strategic priorities. The Company maintains multiple liquidity sources, including its ability to issue debt, which supports strategic investments and acquisitions.

Dividend Payments

The Company remains committed to providing returns to investors through cash dividends on its common stock. The Company has paid 390 consecutive quarterly dividends since becoming a public company in 1928. On November 24, 2025, the Board of Directors authorized a quarterly dividend for the first quarter of fiscal 2026, of $0.2925 per share, a 1% increase from the prior year.

Capital Expenditures

Capital expenditures are allocated to required maintenance and growth opportunities based on the needs of the business. Capital expenditures supporting growth opportunities in fiscal 2026 are expected to focus on projects related to infrastructure, new data and technology, and equipment upgrades. Capital expenditures for fiscal 2026 are estimated to be $260 million to $290 million.

Debt

As of January 25, 2026, the Company’s outstanding debt included an aggregate of $2.9 billion of fixed rate unsecured senior notes due in fiscal 2027, 2028, 2030, and 2051 with interest payable semi-annually. During the first three months of fiscal 2026, the Company made $25 million of interest payments and the Company expects to make an additional $49 million of interest payments in fiscal 2026 on these notes. See Note L - Long-term Debt and Other Borrowing Arrangements of the Notes to the Consolidated Financial Statements for additional information.

Borrowing Capacity

As a source of short-term financing, the Company maintains a $750 million unsecured revolving credit facility. The maximum commitment under this credit facility may be further increased by $375 million upon the satisfaction of certain conditions. Extensions of credit under the facility may be applied by the Company to refinance existing indebtedness and for working capital and other general corporate purposes, including acquisition funding, and may be made in the form of revolving loans, swing line loans, and letters of credit. The lending commitments under the facility are scheduled to expire on March 25, 2030, at which time the Company will be required to pay in full all obligations then outstanding. As of January 25, 2026, the Company had no outstanding borrowings under this facility.

Debt Covenants

The Company’s debt agreements contain customary terms and conditions including representations, warranties, and covenants. These debt covenants limit the ability of the Company to, among other things, incur debt for borrowed money secured by certain liens, or engage in certain sale and leaseback transactions, and the covenants require the Company to maintain certain consolidated financial ratios. As of January 25, 2026, the Company was in compliance with all covenants in its debt agreements and expects to maintain compliance in the future.

Cash Held by International Subsidiaries

As of January 25, 2026, the Company’s international subsidiaries held $214 million of cash and cash equivalents. During the first quarter of fiscal 2026, the Company repatriated $21 million in cash from international subsidiaries with a one-time distribution. The Company maintains all undistributed earnings as permanently reinvested. The Company evaluates the balance and uses of cash held internationally based on the needs of the business.

Share Repurchases

The Company is authorized to repurchase 3,677,494 shares of common stock as part of an existing plan approved by the Company’s Board of Directors. Under the share repurchase authorization, the Company may repurchase shares periodically, depending on market conditions and other factors, and may do so in open market purchases or privately negotiated transactions. The share repurchase authorization has no expiration date. The Company did not repurchase any shares of stock during the first three months of fiscal 2026. The Company continues to evaluate share repurchases as part of its capital allocation strategy.

Commitments

There have been no material changes to the information regarding the Company’s future contractual financial obligations previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2025.

TRADEMARKS

References to the Company’s brands or products in italics within this report represent valuable trademarks owned or licensed by Hormel Foods, LLC or other subsidiaries of Hormel Foods Corporation.

CRITICAL ACCOUNTING ESTIMATES

Management’s discussion and analysis of financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires the Company to make estimates, judgments, and assumptions that can have a meaningful effect on the reporting of consolidated financial statements. The significant accounting policies used in preparing these consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements in the Form 10-K.

Critical accounting estimates are defined as those reflective of significant judgments, estimates, and uncertainties, which may result in materially different results under different assumptions and conditions. There have been no material changes in the Company’s Critical Accounting Estimates as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 26, 2025.

FORWARD-LOOKING STATEMENTS

This report 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 report include statements regarding the Company's: future financial and operational performance, fiscal 2026 outlook, expectations regarding commodity markets and raw material costs, intentions regarding future dividends, expectations regarding the Company's strategic initiatives, including the Transform and Modernize initiative and the Company's recent corporate restructuring plan, expectations for the adequacy of and costs associated with the Company's sources of liquidity, expected compliance with debt covenants, expectations regarding its contractual obligations and liabilities, expectations regarding the impact of new accounting pronouncements, expected contributions and payments related to its pension plan, expectations regarding the return on plan assets, expectations regarding the timing and recognition of compensation expenses, and expectations regarding the outcome of, and adequacy of its reserves for, claims, litigation, and the resolution of tax matters.

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 Annual Report on Form 10-K for the fiscal year ended October 26, 2025. 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.