Key Points – Hormel’s Q2 results beat expectations, with organic sales growth across all three segments, a 70-basis-point gross margin expansion to 17.4%, and adjusted EPS up 14% to $0.40.
Management said this marked the company’s sixth straight quarter of organic net sales growth. – Foodservice and international were standout segments, with Foodservice organic sales up 7% for its 11th consecutive quarter of growth and international organic sales up 5%, led by China and SPAM exports
Retail also improved, helped by JENNIE-O, Applegate and HERDEZ. – Hormel reaffirmed full-year guidance for fiscal 2026 sales of $12.2 billion to $12.5 billion and adjusted EPS of $1.43 to $1.51, while warning that Q3 will face cost headwinds from fuel, logistics, commodity volatility and inventory rebalancing. The company still expects earnings to trend toward the upper half of its range. – Dividend Resilience: Why These Kings Are Safe After a Volatile Q1 Hormel Foods (NYSE:HRL) said its fiscal second-quarter results exceeded internal expectations, driven by organic sales growth across all three operating segments, improved margins and stronger manufacturing performance, particularly in turkey operations. Interim Chief Executive Officer Jeff Ettinger said the quarter marked the company’s sixth consecutive period of organic net sales growth and included “impressive double-digit adjusted earnings growth.” He said the company’s results reflected pricing actions, mix improvements, productivity gains and benefits from restructuring efforts. – 5 Under-the-Radar Consumer Staples Stocks With Pricing Power “We delivered an excellent second quarter, highlighted by continued top-line momentum and meaningful improvement in bottom-line performance,” Ettinger said on the call.
Hormel reaffirmed its full-year fiscal 2026 outlook for net sales of $12.2 billion to $12.5 billion and adjusted earnings per share of $1.43 to $1.51. The company said it is trending toward the upper half of the earnings…