Hormel Foods (NYSE:HRL) Misses Q3 CY2025 Revenue Estimates

Packaged foods company Hormel (NYSE:HRL) fell short of the markets revenue expectations in Q3 CY2025 as sales only rose 1.5% year on year to $3.19 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $12.35 billion at the midpoint. Its non-GAAP profit of $0.32 per share was 6% above analysts’ consensus estimates.

Is now the time to buy Hormel Foods? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $12.11 billion in revenue over the past 12 months, Hormel Foods is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when your existing brands have penetrated most of the market. To expand meaningfully, Hormel Foods likely needs to tweak its prices, innovate with new products, or enter new markets.

As you can see below, Hormel Foods struggled to increase demand as its $12.11 billion of sales for the trailing 12 months was close to its revenue three years ago. This is mainly because consumers bought less of its products - we’ll explore what this means in the "Volume Growth" section.

This quarter, Hormel Foods’s revenue grew by 1.5% year on year to $3.19 billion, falling short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 3.2% over the next 12 months. While this projection indicates its newer products will fuel better top-line performance, it is still below the sector average.

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Volume Growth

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

Hormel Foods’s average quarterly sales volumes have shrunk by 2.5% over the last two years. This decrease isn’t ideal because the quantity demanded for consumer staples products is typically stable.

In Hormel Foods’s Q3 2025, sales volumes dropped 1.8% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.

Key Takeaways from Hormel Foods’s Q3 Results

It was encouraging to see Hormel Foods’s full-year EPS guidance beat analysts’ expectations. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its revenue fell short of Wall Street’s estimates. Overall, this quarter was mixed. Still, the stock traded up 3.8% to $24.31 immediately following the results.

So should you invest in Hormel Foods right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.