What You Need to Know Ahead of Hormel Foods' Earnings Release

Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers. Valued at $11.9 billion by market cap, the company markets its products around the world under a variety of branded names like HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BLACK LABEL, BURKE, CAFÉ H, CHI-CHI'S, and more. The diversified food giant is expected to announce its fiscal second-quarter earnings for 2026 in the near future.

Ahead of the event, analysts expect HRL to report a profit of $0.35 per share on a diluted basis, unchanged from the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.

For the full year, analysts expect HRL to report EPS of $1.42, up 3.7% from $1.37 in fiscal 2025. Its EPS is expected to rise 7.8% year over year to $1.53 in fiscal 2027. 

HRL stock has significantly underperformed the S&P 500 Index’s ($SPX) 30.6% gains over the past 52 weeks, with shares down 28.6% during this period. Similarly, it notably underperformed the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 2.7% gains over the same time frame.

Hormel’s recent performance has been weighed down by external setbacks, including a chicken recall and plant fire. Its combination of established brands and private-label products provides a hedge as consumers navigate persistent inflation. Organic sales in the retail segment declined year over year, largely due to the planned exit from non-core private-label snack nut products and continued softness in packaged deli, across both branded and private-label, which appears to be the concern for investors.

Analysts’ consensus opinion on HRL stock is cautious, with an overall “Hold” rating. Out of 10 analysts covering the stock, two advise a “Strong Buy” rating, and eight give a “Hold.” HRL’s average analyst price target is $26.57, indicating a potential upside of 23.3% from the current levels.