Hormel Reports Expanded Adjusted Operating Margin Amid Volume Decline
Hormel Foods Corporation (NYSE:HRL) reported a fiscal third-quarter sales decline of $2.96 billion, down 2.4%, driven by a 7.4% volume drop and a 1.7% fall in organic net sales. Despite the revenue contraction, adjusted operating margin expanded to 9.0% from 8.4%, with adjusted diluted earnings per share rising to $0.37 from $0.35. Cash flow from operations surged by 54% to $241 million. GAAP results were weaker, showing a drop in GAAP operating margin to 3.7% and GAAP diluted EPS falling to $0.11 from $0.33. Hormel also revised its fiscal 2026 sales guidance downward while narrowing organic net sales growth expectations. The company attributed the improved adjusted performance primarily to cost savings, particularly in selling, general, and administrative expenses. The Foodservice segment showed resilience with a second consecutive year of organic net sales growth, supported by premium products and favorable pork input costs.
Tickers: $HRL
Topics: adjusted operating margin cost savings earnings guidance revision volume decline