Hormel Foods Corporation (NYSE:HRL) reported fourth-quarter results on Thursday that met expectations but were weighed down by sizable impairment charges. Still, shares rose 4% in pre-market trading as investors focused on the company’s stronger-than-expected fiscal 2026 guidance.
The producer of Spam, Skippy, and Planters posted adjusted earnings of $0.32 per share, matching consensus estimates. Revenue increased 1.5% year-over-year to $3.2 billion, just shy of the $3.24 billion analysts had projected. GAAP results showed a quarterly loss of $0.10 per share, reflecting $234 million in non-cash impairment charges tied primarily to a minority investment in the International segment and certain Retail intangible assets.
Despite the headline challenges, the company’s outlook impressed the market. Hormel expects fiscal 2026 earnings between $1.43 and $1.51 per share on revenue of $12.2 billion to $12.5 billion, outpacing expectations of $1.37 per share.
“We finished fiscal 2025 with another quarter of solid top-line growth, driven by the continued relevance of our brands and the strength of our value-added portfolio,” said Jeff Ettinger, interim chief executive officer. “Despite this momentum, profitability remained challenged due to persistent input cost inflation and discrete items.”
Organic net sales grew 2% in the quarter, with Foodservice standing out thanks to 6.5% organic growth. However, adjusted segment profit declined across all divisions. Retail segment profit fell 23% even as revenue in that segment rose 1%.
Hormel also announced its 60th consecutive annual dividend increase, lifting the quarterly payout by 1% to an annualized $1.17 per share.
“Hormel Foods is entering fiscal 2026 with a clear strategic compass and a commitment to reshape our earnings trajectory,” said John Ghingo, president. “Our focus is on meeting the evolving needs of consumers through convenient, protein-centric offerings, brand leadership, and operational excellence.”
Looking ahead, Hormel expects commodity markets to show modest improvement in the back half of fiscal 2026. The company also anticipates benefits from its Transform and Modernize initiative and its administrative cost-reduction program, though it cautioned that earnings pressure may persist in the first quarter.