AUSTIN, Minnesota, August 28, 2026, 09:15 EDT
- Hormel stock ended Thursday’s session at $21.28, falling 10.25% with 18.59 million shares traded.
- The forecast for full-year sales was lowered to a range of $12.1 billion–$12.2 billion, down from a previous projection of $12.2 billion–$12.5 billion.
- Retail volume declined by 9%, and quarterly revenue fell short of consensus by approximately $80 million.
- Adjusted earnings per share surpassed projections, and the company increased the lower end of its full-year profit guidance.
Shares of Hormel Foods Corporation posted their largest drop in months on Thursday, sliding 10.25% to close at $21.28 after the company lowered its sales outlook amid softer demand.
The drop wiped out approximately $1.34 billion in market capitalization, calculated with 550.32 million shares in circulation. The session saw 18.59 million shares change hands, about 4.5 times the typical recent volume.
The signal outpaced the headline profit beat. Hormel’s biggest division posted a 9% drop in volume. This decline points to consumers holding back on some packaged-food buys, even as comparisons ease.
Hormel Foods Corporation (NYSE: HRL) lowered its fiscal 2026 sales outlook to $12.1 billion–$12.2 billion, after previously estimating $12.2 billion–$12.5 billion. The midpoint declined by 1.6%.
| Investor metric | Fiscal Q3 2026 / updated | Comparison |
|---|---|---|
| Net sales | $2.96 billion | Fell 2.4%; $3.04 billion consensus |
| Adjusted EPS | $0.37 | $0.35 consensus |
| Retail volume | Down 9% | Retail sales dropped 4% |
| Adjusted operating margin | 9.0% | 8.4% in the same period a year ago |
| FY sales outlook | $12.1 billion–$12.2 billion | Prior estimate $12.2 billion–$12.5 billion |
| FY adjusted EPS | $1.45–$1.51 | Previous range $1.43–$1.51 |
Revenue for the third quarter fell 2.4% to $2.96 billion, coming in below the $3.04 billion consensus estimate from LSEG. Adjusted earnings per share came to $0.37, surpassing forecasts by two cents.
Retail sales declined 4% due to softer demand for private-label snack nuts and commodity turkey. Foodservice sales advanced 2%, achieving a twelfth consecutive quarter of organic expansion. Segment profit was up 3% in that division.
Hormel’s adjusted operating margin increased to 9.0% from 8.4%. Operational cash flow climbed 54% to $241 million. These improvements led Hormel to lift its adjusted earnings per share forecast to $1.45–$1.51.
GAAP earnings reflected a separate trend. Diluted EPS dropped to $0.11, impacted by $142 million in discrete pretax charges. These charges consisted of a loss from the Brazil divestiture, an impairment in Indonesia, and a litigation settlement.
The main concern for investors is now the sustainability of volumes. A 9% drop in retail offset gains in SPAM, Applegate, and Hormel chili sales. Higher logistics costs further impacted segment profit.
Analysts continue to exercise caution. FactSet shows a consensus rating of Hold, with nine Hold recommendations compared to four positive ones. The mean price target stands at $26.13, representing roughly a 23% premium to Thursday’s closing price.
Hormel shares were at $21.41 as of 09:00 ET on Friday, gaining 0.61% in premarket trading. The increase recouped just a fraction of Thursday’s decline.
Risks: Solid performance in foodservice and improved pricing have the potential to support revenue stabilization ahead of projections. However, additional consumer weakness, rising freight costs or continued softness in retail volumes may keep forecasts and valuation constrained.
The upcoming test is fiscal fourth-quarter performance. Investors are set to monitor if higher margins are sustainable even without renewed growth in retail volumes.
