Hormel Foods Posts Q1 Preliminary Results: What Lies Ahead?

Hormel Foods Corporation HRL reported preliminary results for the first quarter of fiscal 2026, reflecting modest sales growth and stable earnings. The early figures suggest that the company is progressing toward its fiscal-year goals while maintaining focus on profitable growth and operational execution.

Hormel Foods’ Q1 Preliminary Results & Outlook

Hormel Foods anticipates first-quarter net sales of roughly $3 billion, supported by approximately 2% year-over-year organic growth. The improvement reflects continued momentum across key branded offerings and represents the company’s fifth straight quarter of year-over-year organic net sales growth. Adjusted earnings per share are projected to be 34 cents in the fiscal first quarter. 

The company reaffirmed its fiscal 2026 outlook, as well as the long-term performance framework, which targets 2-3% organic revenue growth and 5-7% operating profit expansion. Management highlighted Hormel Foods’ strong position within the branded foods space and stressed its focus on disciplined execution to deliver these objectives. The company’s portfolio features widely recognized brands such as SPAM, Skippy and Jennie-O, which continue to support shelf presence, consumer loyalty and steady demand.

HRL Stock's Past 3 Month Performance

HRL’s Strategic Focus for Sustainable Growth

Hormel Foods is reinforcing its growth strategy around a protein-centric portfolio that serves both retail and foodservice channels. Management is prioritizing margin expansion through mix improvements, pricing discipline and productivity gains from its Transform and Modernize initiative, while continuing to invest in capabilities that enhance efficiency, cost control and operational agility. 

The company is also deepening its consumer-first approach by using data, analytics and real-time insights to refine pricing, assortment and portfolio decisions. By aligning innovation with trends such as convenience, flavor variety and rising protein consumption, Hormel Foods aims to strengthen brand relevance and deliver solutions across multiple eating occasions, supporting long-term competitive positioning.

As part of the portfolio shaping efforts, Hormel Foods has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations. The deal is expected to close by the end of the second quarter of fiscal 2026 and currently estimated to have a minimal impact on full-year guidance.

HRL’s Investment Analysis

With a steady start to fiscal 2026, Hormel Foods appears to be advancing toward more consistent, profitable growth. Modest organic sales gains, reaffirmed full-year targets and ongoing productivity initiatives reflect disciplined execution in a challenging cost environment. The company’s strong branded portfolio and protein-focused strategy support its defensive positioning within the packaged foods space. Currently, Hormel Foods carries a Zacks Rank #3 (Hold).

Shares of HRL have risen 5.6% in the past three months compared with the industry’s growth of 12%.

Stocks to Consider

The Hershey Company HSY engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.4% and 27.1%, respectively, from the prior-year reported levels. HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average. 

The Simply Good Foods Company SMPL, a consumer-packaged food and beverage company, engages in the development, marketing and sale of snacks and meal replacements and other products in North America and internationally. It flaunts a Zacks Rank #1 at present. SMPL delivered a trailing four-quarter earnings surprise of 5.5%, on average. 

The Zacks Consensus Estimate for Simply Good Foods’ current fiscal-year earnings implies growth of 1.6% from the year-ago figures.

Ollie's Bargain Outlet Holdings, Inc. OLLI operates as a retailer of closeout merchandise and excess inventory in the United States. OLLI currently has a Zacks Rank #2 (Buy). Ollie's Bargain delivered a trailing four-quarter earnings surprise of 5.2%, on average.

The Zacks Consensus Estimate for Ollie's Bargain’s fiscal 2025 sales and earnings implies growth of 16.7% and 17.7%, respectively, from the previous year’s reported numbers.

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This article originally published on Zacks Investment Research (zacks.com).

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