Hormel Foods Q1 Net Income Rises 7% to $181.8M on Improved Operating Margin

Hormel Foods Corporation (NYSE: HRL), a global branded food company, reported net income of $181.8 million for the quarter ended January 25, 2026, up from $170.6 million in the same quarter last year. The company posted diluted earnings per share of $0.33, compared with $0.31 in the year-ago period. Read more earnings reports.

Operating income rose to $243.7 million from $228.3 million in the prior-year quarter, a gain of 7%. Gross profit declined modestly to $469.6 million from $475.2 million, as cost of goods sold increased to $2.56 billion from $2.51 billion.

Selling, general and administrative expenses fell to $241.7 million from $263.0 million, a decline of $21.3 million or 8%. The decrease in SG&A contributed to the improved operating margin despite the higher cost base.

Cash from operations strengthened to $349.2 million for the quarter, compared with $309.2 million in the prior-year period. The company ended the quarter with $867.9 million in cash and cash equivalents, up from $670.7 million at the end of fiscal year 2025.

Total assets declined slightly to $13.32 billion as of January 25, 2026, from $13.39 billion at the end of October 2025. Inventory decreased to $1.65 billion from $1.75 billion during the same period. Accounts receivable fell to $696.3 million from $784.8 million.

Long-term debt held steady at $2.85 billion. Total stockholders' equity increased to $7.94 billion from $7.90 billion at the prior quarter-end. Retained earnings rose to $7.54 billion from $7.52 billion, reflecting the quarter's net income.

Cash used in financing activities totaled $162.4 million, compared with $143.1 million in the year-ago quarter. Cash from investing activities generated $7.9 million, a reversal from the $60.3 million used in the prior-year period.

Quarterly Financial Summary

Balance Sheet Highlights