Hormel Foods' Sales Dip; Full-Year Outlook Lowered

Hormel Foods (HRL) announced its second quarter CY2026 results, revealing a 2.4% decrease in revenue, which amounted to $2.96 billion and missed analyst expectations. The packaged foods company, known for its SPAM brand, has adjusted its full-year revenue outlook downwards to $12.15 billion at the midpoint, a reduction from its previous guidance.

Despite the revenue shortfall, Hormel Foods surpassed profit estimates, reporting non-GAAP earnings of $0.37 per share, a 4.6% beat. The company also slightly increased its full-year adjusted earnings per share guidance to $1.48. However, sales volumes experienced a notable decline of 7.4% year-on-year, contrasting with a smaller decrease in the same quarter last year. The operating margin decreased significantly to 3.7% from 7.9% year-over-year, though the free cash flow margin improved to 5.8% from 2.8%.