HORMEL FOODS CORP /DE/ 10-Q

Item 1. FINANCIAL STATEMENTS HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Quarter Ended In thousands, except per share amounts January 25, 2026 January 26, 2025 Net Sales $ 3,027,317 $ 2,988,813 Cost of Products Sold 2,557,742 2,513,581 Gross Profit 469,575 475,232 Selling, General, and Administrative 241,698 263,013 Equity in Earnings of Affiliates 15,820 16,111 Operating Income 243,697 228,330 Interest Income 6,528 7,543 Interest Expense 19,728 19,462 Other Income (Expense), Net 3,815 1,661 Earnings Before Income Taxes 234,312 218,073 Provision for Income Taxes 52,542 47,543 Net Earnings 181,769 170,530 Less: Net Earnings (Loss) Attributable to Noncontrolling Interest ( 32 ) ( 45 ) Net Earnings Attributable to Hormel Foods Corporation $ 181,801 $ 170,575 Net Earnings Per Share: Basic $ 0.33 $ 0.31 Diluted $ 0.33 $ 0.31 Weighted-average Shares Outstanding: Basic 550,477 549,460 Diluted 550,706 549,854 See accompanying Notes to the Consolidated Financial Statements 3 Table of Contents HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited Quarter Ended In thousands January 25, 2026 January 26, 2025 Net Earnings $ 181,769 $ 170,530 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation 2,492 ( 27,078 ) Pension and Other Benefits 1,487 2,366 Derivatives and Hedging 6,948 15,862 Equity Method Investments ( 210 ) 473 Total Other Comprehensive Income (Loss) 10,718 ( 8,377 ) Comprehensive Income 192,487 162,153 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest 63 ( 490 ) Comprehensive Income Attributable to Hormel Foods Corporation $ 192,423 $ 162,643 See accompanying Notes to the Consolidated Financial Statements 4 Table of Contents HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Unaudited In thousands, except share and per share amounts January 25, 2026 October 26, 2025 Assets Cash and Cash Equivalents $ 867,906 $ 670,679 Short-term Marketable Securities 33,302 32,909 Accounts Receivable (Net of Allowance of $ 3,778 and $ 3,743 , respectively) 696,252 784,812 Inventories 1,647,271 1,747,279 Taxes Receivable 58,808 96,791 Prepaid Expenses and Other Current Assets 84,702 73,187 Total Current Assets 3,388,240 3,405,656 Goodwill 4,888,532 4,924,087 Intangible Assets 1,588,104 1,647,297 Pension Assets 209,262 211,826 Investments in Affiliates 577,058 533,984 Other Assets 423,755 431,500 Property, Plant, and Equipment, Net 2,241,482 2,238,770 Total Assets $ 13,316,433 $ 13,393,119 Liabilities and Shareholders’ Investment Accounts Payable $ 670,938 $ 731,578 Accrued Expenses 60,350 55,772 Accrued Marketing Expenses 129,824 113,947 Employee-related Expenses 224,470 273,402 Interest and Dividends Payable 175,868 180,700 Taxes Payable 4,983 18,752 Current Maturities of Long-term Debt 6,485 6,646 Total Current Liabilities 1,272,917 1,380,796 Long-term Debt Less Current Maturities 2,851,007 2,850,778 Pension and Postretirement Benefits 356,108 358,984 Deferred Income Taxes 663,854 661,349 Other Long-term Liabilities 219,340 225,397 Shareholders’ Investment Preferred Stock, Par Value $ 0.01 a Share — Authorized 160,000,000 Shares; Issued — None — — Common Stock, Nonvoting, Par Value $ 0.01 a Share — Authorized 400,000,000 Shares; Issued — None — — Common Stock, Par Value $ 0.01465 a Share — Authorized 1,600,000,000 Shares; Issued 550,211,704 and 550,107,260 Shares, respectively 8,061 8,059 Additional Paid-in Capital 625,982 620,069 Accumulated Other Comprehensive Loss ( 233,023 ) ( 243,646 ) Retained Earnings 7,537,481 7,516,690 Hormel Foods Corporation Shareholders’ Investment 7,938,500 7,901,171 Noncontrolling Interest 14,707 14,644 Total Shareholders’ Investment 7,953,207 7,915,815 Total Liabilities and Shareholders’ Investment $ 13,316,433 $ 13,393,119 See accompanying Notes to the Consolidated Financial Statement s 5 Table of Contents HORMEL FOODS CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT Unaudited Quarter Ended January 26, 2025 Hormel Foods Corporation Shareholders Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Total Shareholders’ Investment In thousands, except per share amounts Shares Amount Shares Amount Balance at October 27, 2024 548,605 $ 8,037 — $ — $ 571,178 $ 7,677,537 $ ( 263,331 ) $ 10,590 $ 8,004,011 Net Earnings (Loss) 170,575 ( 45 ) 170,530 Other Comprehensive Income (Loss) ( 7,932 ) ( 445 ) ( 8,377 ) Stock-based Compensation Expense 5,454 5,454 Exercise of Stock-based Compensation Awards, Net of Withholding Taxes 1,180 17 25,980 25,997 Declared Dividends – $ 0.2900 per Share 275 ( 159,448 ) ( 159,173 ) Balance at January 26, 2025 549,785 $ 8,054 — $ — $ 602,887 $ 7,688,663 $ ( 271,263 ) $ 10,101 $ 8,038,442 Quarter Ended January 25, 2026 Hormel Foods Corporation Shareholders Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interest Total Shareholders’ Investment In thousands, except per share amounts Shares Amount Shares Amount Balance at October 26, 2025 550,107 $ 8,059 — $ — $ 620,069 $ 7,516,690 $ ( 243,646 ) $ 14,644 $ 7,915,815 Net Earnings (Loss) 181,801 ( 32 ) 181,769 Other Comprehensive Income (Loss) 10,623 95 10,718 Stock-based Compensation Expense 6,919 6,919 Exercise of Stock-based Compensation Awards, Net of Withholding Taxes 104 2 ( 1,108 ) ( 1,106 ) Declared Dividends – $ 0.2925 per Share 102 ( 161,009 ) ( 160,907 ) Balance at January 25, 2026 550,212 $ 8,061 — $ — $ 625,982 $ 7,537,481 $ ( 233,023 ) $ 14,707 $ 7,953,207 See accompanying Notes to the Consolidated Financial Statements 6 Table of Contents HORMEL FOODS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Unaudited Quarter Ended In thousands January 25, 2026 January 26, 2025 Operating Activities Net Earnings $ 181,769 $ 170,530 Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization 67,095 65,872 Equity in Earnings of Affiliates ( 15,820 ) ( 16,111 ) Distributions Received from Equity Method Investees 13,051 19,894 Provision for Deferred Income Taxes 139 ( 70 ) Non-cash Investment Activities ( 3,237 ) ( 2,547 ) Stock-based Compensation Expense 6,919 5,454 Operating Lease Cost 10,821 9,580 Loss (Gain) on Sale of Business ( 23,508 ) 10,800 Other Non-cash, Net 1,465 1,140 Changes in Operating Assets and Liabilities, Net of Divestitures: Decrease (Increase) in Accounts Receivable 90,901 57,194 Decrease (Increase) in Inventories 91,293 55,606 Decrease (Increase) in Prepaid Expenses and Other Assets 833 ( 8,101 ) Increase (Decrease) in Pension and Postretirement Benefits 1,728 10,167 Increase (Decrease) in Accounts Payable and Accrued Expenses ( 97,026 ) ( 56,325 ) Increase (Decrease) in Net Income Taxes Payable 22,791 ( 13,877 ) Net Cash Provided by (Used in) Operating Activities 349,214 309,206 Investing Activities Net Sale (Purchase) of Securities ( 323 ) ( 1,387 ) Proceeds from Sale of Business 78,853 13,643 Purchases of Property, Plant, and Equipment ( 68,993 ) ( 72,167 ) Proceeds from Sales of Property, Plant, and Equipment 5 35 Proceeds from (Purchases of) Affiliates and Other Investments ( 1,593 ) ( 1,393 ) Proceeds from Company-owned Life Insurance — 936 Net Cash Provided by (Used in) Investing Activities 7,948 ( 60,333 ) Financing Activities Repayments of Long-term Debt and Finance Leases ( 1,825 ) ( 2,202 ) Dividends Paid on Common Stock ( 159,501 ) ( 154,980 ) Proceeds from Stock-based Compensation Plans, Net of Withholding Taxes ( 1,106 ) 14,120 Net Cash Provided by (Used in) Financing Activities ( 162,433 ) ( 143,063 ) Effect of Exchange Rate Changes on Cash 2,498 ( 7,294 ) Increase (Decrease) in Cash and Cash Equivalents 197,228 98,516 Cash and Cash Equivalents at Beginning of Year 670,679 741,881 Cash and Cash Equivalents at End of Period $ 867,906 $ 840,398 Supplemental Non-cash Investing and Financing Activities: Purchases of Property, Plant, and Equipment Included in Accounts Payable $ 26,207 $ 20,090 See accompanying Notes to the Consolidated Financial Statements 7 Table of Contents HORMEL FOODS CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Unaudited NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year. These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2025. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 26, 2025. Rounding: Certain amounts in the consolidated financial statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts. Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation. • Consolidated Statements of Operations: Interest and Investment Income has been separated into Interest Income and Other Income (Expense), Net. • Consolidated Statements of Financial Position: The major classes of Property, Plant, and Equipment are now disclosed in Note F - Property, Plant, and Equipment. Accounting Changes and Recent Accounting Pronouncements: New Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of annual income tax disclosures. The ASU updates income tax disclosure requirements by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The ASU is effective for the Company's fiscal year ending October 25, 2026. The Company is currently assessing the impact of adopting the updated provisions. In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Subsequently, in January 2025, the FASB issued ASU 2025-01 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Dat e. The new guidance is intended to provide investors more detailed disclosures around specific types of expenses. The new disclosures require certain details for expenses presented on the face of the Consolidated Statements of Operations as well as selling expenses to be presented in the notes to the financial statements. As clarified by ASU 2025-01, the guidance is effective for the Company's fiscal year ending October 29, 2028, and subsequent interim periods thereafter. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently assessing the impact of adopting the updated guidance. In September 2025, the FASB issued ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The new guidance is intended to modernize the accounting for internal-use software costs and better align recognition practices. The update introduces principles-based criteria entities must consider to begin capitalizing costs based on management authorization and project completion probability. The guidance is effective for the Company's fiscal year ending October 28, 2029, and subsequent interim periods thereafter, with early adoption permitted. Several transition approaches are available including prospective, retrospective, and a modified transition approach. The Company is currently assessing the impact, transition approach, and timing of adoption. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements . The update is intended to improve the navigability of interim disclosure requirements and provide additional guidance about disclosures 8 Table of Contents to be provided in interim reporting periods, including a requirement to disclose events since the end of the last annual reporting period that have a material impact on the entity. The update is effective for interim reporting periods within the Company’s fiscal year beginning October 30, 2028. Early adoption is permitted and the guidance may be applied prospectively or retrospectively. The Company is currently assessing the impact of adopting the updated provisions. The adoption is not expected to have a material effect on the Company’s financial condition or results of operations. Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company. NOTE B - ACQUISITIONS AND DIVESTITURES Justin's, LLC Transaction: On December 15, 2025, the Company sold 51 % of its equity interest in Justin's, LLC and related assets to Forward Consumer Partners, LLC for cash proceeds of $ 77.3 million, net of estimated working capital adjustments. As a result of the transaction, the Company no longer holds a controlling financial interest in Justin's, LLC, resulting in deconsolidation. The sale resulted in a pre-tax gain of $ 23.5 million, which was recognized in Selling, General, and Administrative. Results of operations for Justin's, LLC were primarily reflected in the Retail segment prior to deconsolidation. The Company maintained the ability to exercise significant influence over the entity in its new structure, Joy Topco LP (f/k/a Justin's, LLC), and will account for this interest as an equity method investment. The Company recorded the remaining 49 % equity interest in Joy Topco LP at its estimated fair value of $ 46.3 million plus $ 1.1 million in capitalized deal costs in Investment in Affiliates. The Company engaged a third-party specialist to assist with the valuation, which reflected a combination of observable data and significant unobservable, or Level 3, inputs to determine the estimated fair value of the investment. Results of Joy Topco LP are reported as Equity in Earnings of Affiliates within the Retail segment. See Note D - Investments in Affiliates for additional information. Mountain Prairie, LLC Divestiture: On November 18, 2024, the Company sold its equity interests in a non-core sow operation, Mountain Prairie, LLC, and related assets to Chaparral Ranches, LLC for cash proceeds of $ 13.6 million. The divestiture resulted in a pre-tax loss of $ 11.3 million, including transaction costs, which was recognized in Selling, General, and Administrative. Results of operations for Mountain Prairie, LLC were primarily reflected within the Retail segment through the date of divestiture. Whole-bird Turkey Transaction: On February 13, 2026, subsequent to the end of the quarter, the Company entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations (LSI). LSI will acquire the Melrose, Minnesota, whole-bird production facility; Swanville, Minnesota, feed mill; and associated transportation assets. LSI will also assume supply contracts with certain third-party turkey growers and provide co-manufacturing services to the Company through the end of fiscal 2026. The purchase price consists of cash at closing and a secured promissory note payable over time. The transaction is expected to close by the end of the second quarter of fiscal 2026, subject to customary closing conditions. The Company is evaluating the accounting implications of the planned sale. NOTE C - GOODWILL AND INTANGIBLE ASSETS Goodwill: The change in the carrying amount of goodwill for the quarter ended January 25, 2026, is: In thousands Retail Foodservice International Total Balance at October 26, 2025 $ 2,916,796 $ 1,748,355 $ 258,936 $ 4,924,087 Goodwill Sold (1) ( 33,570 ) ( 1,330 ) — ( 34,900 ) Foreign Currency Translation — — ( 655 ) ( 655 ) Balance at January 25, 2026 $ 2,883,226 $ 1,747,025 $ 258,281 $ 4,888,532 (1) Goodwill sold during fiscal 2026 was due to the sale of the Company's controlling equity interest in Justin's, LLC. See Note B - Acquisitions and Divestitures for additional information. 9 Table of Contents Intangible Assets: The Company's intangible assets by type are: January 25, 2026 October 26, 2025 In thousands Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived Intangible Assets Customer Relationships $ 107,648 $ ( 57,026 ) $ 50,622 $ 134,328 $ ( 78,565 ) $ 55,763 Other Definite-lived Intangibles 59,095 ( 25,330 ) 33,764 59,445 ( 24,620 ) 34,824 Trade Names/Trademarks — — — 6,210 ( 6,210 ) — Foreign Currency Translation — ( 2,885 ) ( 2,885 ) — ( 4,476 ) ( 4,476 ) Total Definite-lived Intangible Assets $ 166,742 $ ( 85,241 ) $ 81,501 $ 199,982 $ ( 113,872 ) $ 86,111 Indefinite-lived Intangible Assets Brands/Trade Names/Trademarks (1) $ 1,513,306 $ 1,567,623 Foreign Currency Translation ( 6,703 ) ( 6,437 ) Total Indefinite-lived Intangible Assets 1,506,603 1,561,186 Total Intangible Assets $ 1,588,104 $ 1,647,297 (1) Includes the removal of a $ 54.3 million indefinite‑lived trade name following the sale of the Company's controlling equity interest in Justin's, LLC. See Note B - Acquisitions and Divestitures for additional information. Amortization expense on intangible assets is as follows: Quarter Ended In thousands January 25, 2026 January 26, 2025 Amortization Expense $ 3,070 $ 3,830 Estimated annual amortization expense on intangible assets for the five fiscal years after October 26, 2025, is as follows: In thousands Amortization Expense 2026 $ 12,042 2027 11,685 2028 10,773 2029 9,511 2030 9,326 NOTE D - INVESTMENTS IN AFFILIATES Ownership: As of January 25, 2026, the Company's equity method investments include: Segment Ownership Percentage MegaMex Foods, LLC Retail 50 % Joy Topco LP (1) Retail 49 % The Purefoods - Hormel Company, Inc. International 40 % PT Garudafood Putra Putri Jaya Tbk. (Garudafood) International 30 % Okinawa Hormel Ltd. International 26 % Corporate Venturing Investments n/a 26 % - 43 % (1) In the first quarter of fiscal 2026, the Company recorded a 49 % ownership interest in Joy Topco LP in connection with the sale of its controlling equity interest in Justin’s, LLC. See Note B - Acquisitions and Divestitures for additional information. Equity in Earnings: The Company's share of earnings from its equity method investments is recorded as Equity in Earnings of Affiliates and further disclosed in Note O - Segment Reporting. Equity in earnings from corporate venturing investments is not included in any of the reportable segments' measure of segment profit. 10 Table of Contents Distributions: Distributions received from equity method investees consists of: In thousands Quarter Ended January 25, 2026 January 26, 2025 Distributions $ 13,051 $ 19,894 Basis Difference: The initial and unamortized basis differences as of January 25, 2026, are: In thousands Initial Basis Difference Unamortized Basis Difference Garudafood (1) $ 324,828 $ 135,545 MegaMex Foods, LLC 21,273 7,397 (1) The Garudafood remaining unamortized basis difference includes the impact of foreign currency translation and impairment. Fair Value: Based on quoted market prices, the fair value of the common stock held in Garudafood was $ 233.7 million as of January 23, 2026. The Company's other equity method investments do not have readily determinable fair values. Transactions: The Company has agreements with its equity method investments which, in some cases, result in amounts due to or due from these parties. The amounts due to equity method investees were $ 44.8 million and $ 38.8 million as of January 25, 2026, and October 26, 2025, respectively. The amounts due from equity method investees were $ 9.3 million and $ 11.9 million as of January 25, 2026, and October 26, 2025, respectively. NOTE E - INVENTORIES Principal components of inventories are: In thousands January 25, 2026 October 26, 2025 Finished Products $ 952,510 $ 1,055,472 Raw Materials and Work-in-Process 413,015 414,436 Operating Supplies 141,220 142,643 Maintenance Materials and Parts 140,526 134,729 Total Inventories $ 1,647,271 $ 1,747,279 NOTE F - PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consists of the following: In thousands January 25, 2026 October 26, 2025 Land $ 74,971 $ 74,710 Buildings 1,538,947 1,537,276 Equipment 3,055,464 3,014,677 Construction in Progress 283,249 286,466 Less: Allowance for Depreciation ( 2,711,149 ) ( 2,674,359 ) Property, Plant, and Equipment, Net $ 2,241,482 $ 2,238,770 NOTE G - DERIVATIVES AND HEDGING The Company uses hedging programs to manage risk associated with various commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. Cash Flow Commodity Hedges: The Company uses futures, swaps, and options contracts to offset price fluctuations in the Company’s future purchases of grain, lean hogs, natural gas, and diesel fuel. These contracts are designated as cash flow hedges; therefore, the related gains or losses are reported in Accumulated Other Comprehensive Loss (AOCL) and reclassified into earnings, through Cost of Products Sold, in the periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain, natural gas, or diesel fuel exposure beyond two fiscal years and its lean hog exposure beyond one fiscal year. Fair Value Commodity Hedges: The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s lean hog and grain suppliers as fair value hedges. The programs are 11 Table of Contents intended to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts and the offsetting gain or loss on the hedged purchase commitment are marked-to-market through earnings and recorded as a Current Asset and Current Liability, respectively. Gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings. Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with anticipated debt transactions. The total notional amount of the Company’s locks was $ 1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with tenors of seven and 30 years and both locks were lifted (See Note L - Long-term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the period in which the hedged transactions affect earnings. Other Derivatives: The Company holds certain futures and swap contracts to manage the Company’s exposure to fluctuations in grain and pork commodity markets for which it has not applied hedge accounting. Activity related to derivatives not designated for hedge accounting was immaterial to the consolidated financial statements during the quarters ended January 25, 2026, and January 26, 2025. Volume: The Company’s outstanding contracts related to its commodity hedging programs include: In millions January 25, 2026 October 26, 2025 Corn 28.3 bushels 27.4 bushels Lean Hogs 201.4 pounds 188.6 pounds Natural Gas 3.6 MMBtu 3.6 MMBtu Diesel Fuel 8.3 gallons 7.5 gallons Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are: January 25, 2026 October 26, 2025 In thousands Assets Liabilities Assets Liabilities Gross Fair Value of Commodity Contracts $ 19,482 $ ( 4,336 ) $ 9,862 $ ( 4,243 ) Counterparty and Collateral Netting Offset (1) ( 6,854 ) 4,336 304 4,243 Amounts Recognized in Prepaid Expenses and Other Current Assets $ 12,629 $ — $ 10,166 $ — (1) Per the terms of the Company’s master netting arrangements, the gross fair value of the Company’s commodity contracts was offset by the obligation to return net cash collateral of $ 2.5 million (including cash payable of $ 4.4 million and $ 1.9 million of realized gain) as of January 25, 2026, and the right to reclaim net cash collateral of $ 4.5 million (including cash payable of $ 5.5 million and $ 10.1 million of realized gain) as of October 26, 2025. Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company’s fair value hedged assets (liabilities) are: In thousands Location on Consolidated Statements of Financial Position January 25, 2026 October 26, 2025 Commodity Contracts Accounts Payable (1) $ ( 288 ) $ ( 157 ) (1) Represents the carrying amount of fair value hedged assets and liabilities, which are offset by other assets included in master netting arrangements described above. Accumulated Other Comprehensive Loss Impact: As of January 25, 2026, the Company included in AOCL pre-tax hedging gains of $ 14.9 million on commodity contracts and gains of $ 10.3 million related to interest rate settled positions. The Company expects to recognize the majority of the gains on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the associated debt instruments. The pre-tax gains (losses) recognized in AOCL related to the Company’s derivative instruments are: Quarter Ended In thousands January 25, 2026 January 26, 2025 Commodity Contracts $ 11,631 $ 19,134 Excluded Component (1) 10 ( 87 ) (1) Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL. 12 Table of Contents The pre-tax gains (losses) reclassified from AOCL into earnings related to the Company’s derivative instruments are: Location on Consolidated Statements of Operations Quarter Ended In thousands January 25, 2026 January 26, 2025 Commodity Contracts Cost of Products Sold $ 2,194 $ ( 2,141 ) Interest Rate Contracts Interest Expense 247 247 See Note I - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings. Consolidated Statements of Operations Impact: The effect of pre-tax gains (losses) related to the Company’s derivative instruments are: Quarter Ended In thousands January 25, 2026 January 26, 2025 Net Earnings Attributable to Hormel Foods Corporation $ 181,801 $ 170,575 Cash Flow Hedges - Commodity Contracts Gain (Loss) Reclassified from AOCL 2,194 ( 2,141 ) Amortization of Excluded Component from Options ( 227 ) ( 208 ) Fair Value Hedges - Commodity Contracts Gain (Loss) on Commodity Futures (1) ( 92 ) 1,704 Total Gain (Loss) on Commodity Contracts 1,876 ( 645 ) Cash Flow Hedges - Interest Rate Contracts Gain (Loss) Reclassified from AOCL 247 247 Total Gain (Loss) on Interest Rate Contracts 247 247 Total Gain (Loss) Recognized in Earnings $ 2,123 $ ( 398 ) (1) Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarters ended January 25, 2026, and January 26, 2025, which were offset by a corresponding gain or loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis. NOTE H - PENSION AND OTHER POSTRETIREMENT BENEFITS Net periodic cost of defined benefit plans consists of: Pension Benefits Quarter Ended In thousands January 25, 2026 January 26, 2025 Service Cost $ 10,034 $ 11,973 Interest Cost 18,066 17,646 Expected Return on Plan Assets ( 22,351 ) ( 21,737 ) Amortization of Prior Service Cost (Credit) 128 319 Recognized Actuarial Loss (Gain) 2,190 3,014 Net Periodic Cost $ 8,067 $ 11,215 13 Table of Contents Postretirement Benefits Quarter Ended In thousands January 25, 2026 January 26, 2025 Service Cost $ 35 $ 42 Interest Cost 2,202 2,480 Amortization of Prior Service Cost (Credit) ( 7 ) 2 Recognized Actuarial Loss (Gain) ( 307 ) ( 40 ) Net Periodic Cost $ 1,922 $ 2,484 NOTE I - ACCUMULATED OTHER COMPREHENSIVE LOSS Components of Accumulated Other Comprehensive Loss are as follows: In thousands Foreign Currency Translation Pension & Other Benefits Derivatives & Hedging Equity Method Investments Accumulated Other Comprehensive Loss Balance at October 26, 2025 $ ( 114,431 ) $ ( 143,017 ) $ 12,038 $ 1,763 $ ( 243,646 ) Unrecognized Gains (Losses) Gross 2,398 ( 24 ) 11,641 679 14,694 Tax Effect — — ( 2,857 ) — ( 2,857 ) Reclassification into Net Earnings Gross — 2,004 (1) ( 2,441 ) (2) ( 889 ) (3) ( 1,327 ) Tax Effect — ( 493 ) 606 — 112 Change Net of Tax 2,398 1,487 6,948 ( 210 ) 10,623 Balance at January 25, 2026 $ ( 112,033 ) $ ( 141,530 ) $ 18,985 $ 1,554 $ ( 233,023 ) (1) Included in computation of net periodic cost. See Note H - Pension and Other Postretirement Benefits for additional information. (2) Included in Cost of Products Sold and Interest Expense. See Note G - Derivatives and Hedging for additional information. (3) Included in Equity in Earnings of Affiliates. NOTE J - FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of three levels based on the inputs used in the valuation. The three levels are defined as follows: Level 1 Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets. Level 3 Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances. 14 Table of Contents The Company’s financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below. Fair Value Measurements at January 25, 2026 In thousands Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets at Fair Value Short-term Marketable Securities $ 33,302 $ 7,229 $ 26,073 $ — Other Trading Securities 222,364 — 222,364 — Commodity Derivatives 19,483 18,528 955 — Total Assets at Fair Value $ 275,149 $ 25,757 $ 249,392 $ — Liabilities at Fair Value Deferred Compensation $ 63,036 $ — $ 63,036 $ — Commodity Derivatives 4,360 3,837 523 — Total Liabilities at Fair Value $ 67,396 $ 3,837 $ 63,559 $ — Fair Value Measurements at October 26, 2025 In thousands Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets at Fair Value Short-term Marketable Securities $ 32,909 $ 6,944 $ 25,965 $ — Other Trading Securities 219,197 — 219,197 — Commodity Derivatives 9,888 9,212 676 — Total Assets at Fair Value $ 261,994 $ 16,156 $ 245,838 $ — Liabilities at Fair Value Deferred Compensation $ 63,582 $ — $ 63,582 $ — Commodity Derivatives 4,291 3,436 855 — Total Liabilities at Fair Value $ 67,873 $ 3,436 $ 64,437 $ — The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above: Short-term Marketable Securities: The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset-backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2. Deferred Compensation and Other Trading Securities: The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. These funds are maintained under a third-party insurance policy, and the funds' values represent their cash surrender value based on the fair value of the underlying investments in the account. These policies are classified as Level 2. The majority of the funds held in the rabbi trust relate to supplemental executive retirement plans and are invested in fixed income investments. The declared rate on these investments is set based on a formula using the yield of the general account investment portfolio supporting the fund, as adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may be reset annually on the policy anniversary, subject to a guaranteed minimum rate. During the quarter ended January 25, 2026, investments held by the rabbi trust generated gains of $ 3.2 million compared to gains of $ 2.7 million for the quarter ended January 26, 2025. Under the Company’s deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options, which include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percent of 15 Table of Contents the U.S. Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The Company's funding in the rabbi trust related to deferred compensation plans generally mirrors the investment selections within the plans. Commodity Derivatives: The Company’s commodity derivatives represent futures, swaps, and options contracts used in its hedging or other programs to offset price fluctuations associated with purchases of grain, natural gas, diesel fuel, lean hogs, and pork, and to minimize the price risk assumed when forward-priced contracts are offered to the Company’s commodity suppliers. The Company’s futures and options contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. The Company holds natural gas, diesel fuel, and pork swap contracts that are over-the-counter instruments classified as Level 2. The value of the natural gas and diesel fuel swap contracts is calculated using quoted prices from the New York Mercantile Exchange, and the value of the pork swap contracts are calculated using a futures implied U.S. Department of Agriculture estimated pork cut-out value. All derivatives are reviewed for potential credit risk and risk of nonperformance. The Company’s financial assets and liabilities also include cash and cash equivalents, accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value due to their short-term maturities. The Company does not carry its long-term debt at fair value on the Consolidated Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $ 2.5 billion as of January 25, 2026, and $ 2.6 billion as of October 26, 2025. See Note L - Long-term Debt and Other Borrowing Arrangements for additional information. Nonrecurring Fair Value Measurements: The Company may be required to measure certain nonfinancial assets and liabilities including goodwill, intangible assets, equity method investments, and property, plant, and equipment at fair value on a nonrecurring basis. There were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the quarters ended January 25, 2026, and January 26, 2025. NOTE K - COMMITMENTS AND CONTINGENCIES During the quarter ended January 25, 2026, there were no material changes outside the ordinary course of business to the purchase commitments and other commitments and guarantees last disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2025. Legal Proceedings: The Company is a party to various legal proceedings related to the ongoing operation of its business, including claims both by and against the Company. At any time, such proceedings typically involve claims related to product liability, labeling, contracts, antitrust regulations, intellectual property, competition laws, employment practices, or other actions brought by employees, customers, consumers, competitors, regulators, or suppliers. The Company establishes accruals for its potential exposure, as appropriate, for claims against the Company when losses become probable and reasonably estimable. However, future developments or settlements are uncertain and may require the Company to change such accruals as proceedings progress. Resolution of any currently known matter, either individually or in the aggregate, is not expected to have a material effect on the Company’s financial condition, results of operations, or liquidity. Pork Antitrust Litigation Beginning in June 2018, a series of class action complaints were filed against the Company, as well as several other pork-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the District of Minnesota styled In re Pork Antitrust Litigation (the Pork Antitrust Litigation). The Class Plaintiffs alleged, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products—including through the use of Agri Stats—in violation of federal antitrust laws. Since the original filing, certain plaintiffs opted out of class treatment and began proceeding with individual direct actions making similar claims (Non-Class Direct-Action Plaintiffs), including claims of violations of state antitrust laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Although the Company strongly denies liability, continues to deny the allegations asserted, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the Company executed settlement agreements providing for payments by the Company to the Class Plaintiffs and one Non-Class Direct-Action Plaintiff. For the Class Plaintiffs, the total settlement amount of $ 11.8 million was recorded as Accrued Expenses in the second quarter of fiscal 2024 and was paid during the second half of fiscal 2024. For the one Non-Class Direct-Action Plaintiff, the settlement amount of $ 0.2 million was recorded as Accrued Expenses in the first quarter of fiscal 2025 and was paid in the second quarter of fiscal 2025. All settlement amounts were recorded in Selling, General, and Administrative. In the second quarter of fiscal 2025, the U.S. District Court for the District of Minnesota granted the Company’s Motion for Summary Judgment and dismissed the Company from the federal litigation. Certain defendants challenged the summary 16 Table of Contents judgment decision, but the District Court largely denied the various motions. In November 2025, the Eighth Circuit Court of Appeals denied the defendants' petition to order the District Court to vacate its summary judgment decision. The Company settled the only pending matter that involved state claims brought by one Non-Class Direct Action Plaintiff for non-monetary terms in November 2025. Turkey Antitrust Litigation Beginning in December 2019, a series of class action complaints were filed against the Company, as well as several other turkey-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the Northern District of Illinois styled In re Turkey Antitrust Litigation . The plaintiffs allege, among other things, that from at least 2010 to 2017, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of turkey products—including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain direct-action plaintiffs have opted out of class treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future. The defendants' motions for summary judgment were submitted in January 2026. The Company has not recorded any liability for these matters as it does not believe a loss is probable. The Company cannot reasonably estimate any reasonably possible loss. The Company believes that it has valid and meritorious defenses against the allegations. Tax Proceedings: Two current Company subsidiaries organized in Brazil, Clean Field Comércio de Produtos de Alimentícios LTDA and Omamori Indústria de Alimentos LTDA, along with a former subsidiary, Talis Distribuidora de Alimentos LTDA, which are reported in the International segment, have received tax deficiency notices from the State of São Paulo Tax Authority Office alleging underpayment of ICMS and ICMS-ST taxes, which are similar to value added taxes, for multiple tax years. The subsidiaries have filed objections to appeal these notices, and the proceedings are in various stages of the administrative review process. Any adverse outcomes at the administrative level are expected to be eligible for further appeal through judicial processes. The Company has not recorded any liability relating to these assessments and cannot reasonably estimate any reasonably possible loss at this time. NOTE L - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS Long-term Debt consists of: In thousands January 25, 2026 October 26, 2025 Senior Unsecured Notes with Interest at 3.050 % Interest Due Semi-annually through June 2051 Maturity Date $ 600,000 $ 600,000 Senior Unsecured Notes with Interest at 1.800 % Interest Due Semi-annually through June 2030 Maturity Date 1,000,000 1,000,000 Senior Unsecured Notes with Interest at 1.700 % Interest Due Semi-annually through June 2028 Maturity Date 750,000 750,000 Senior Unsecured Notes with Interest at 4.800 % Interest Due Semi-annually through March 2027 Maturity Date 500,000 500,000 Unamortized Discount on Senior Notes ( 5,638 ) ( 5,848 ) Unamortized Debt Issuance Costs ( 12,062 ) ( 12,775 ) Finance Lease Liabilities 22,378 23,122 Other Financing Arrangements 2,814 2,924 Total Debt 2,857,492 2,857,424 Less: Current Maturities of Long-term Debt 6,485 6,646 Long-term Debt Less Current Maturities $ 2,851,007 $ 2,850,778 Senior Unsecured Notes: On March 8, 2024, the Company issued senior notes in an aggregate principal amount of $ 500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800 % per annum. Interest accrues on the notes from March 8, 2024, and is payable semi-annually in arrears on March 30 and September 30 of each year, commencing September 30, 2024. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101 % of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. On June 3, 2021, the Company issued $ 750.0 million aggregate principal amount of its 1.700 % notes due June 2028 (2028 Notes) and $ 600.0 million aggregate principal amount of its 3.050 % notes due June 2051 (2051 Notes). The notes may be redeemed in whole or in part at any time at the applicable redemption price. Interest accrues per annum at the stated rates and is paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was 17 Table of Contents hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. See Note G - Derivatives and Hedging for additional information. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101 % of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $ 1.0 billion due June 2030. The notes bear interest at a fixed rate of 1.800 % per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101 % of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. Unsecured Revolving Credit Facility: On March 25, 2025, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association, as administrative agent, swing line lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A., and BofA Securities, Inc., as syndication agents, and the lenders party thereto. The revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $ 750.0 million with an uncommitted increase option of an additional $ 375.0 million upon the satisfaction of certain conditions. Interest on funds borrowed under the revolving credit agreement will be charged, depending on the applicable currency, at either a risk-free rate, as defined in the revolving credit agreement (with borrowings in U.S. dollars at the Term Secured Overnight Financing Rate) or a Eurocurrency rate for certain foreign currencies or a base rate with respect to U.S. dollars to be selected by the Company at the time of borrowing plus an applicable margin of 0.575 % to 1.160 % for Eurocurrency rate loans and 0.0 % to 0.160 % for base rate loans, depending on the Company’s debt rating issued by S&P and Moody’s. A variable fee of 0.050 % to 0.090 % is paid for the availability of this credit line. Extensions of credit under the facility may be made in the form of revolving loans, swing line loans, and letters of credit. The lending commitments under the agreement are scheduled to expire on March 25, 2030, at which time the Company will be required to pay in full all obligations then outstanding. The Company had no outstanding borrowings from this facility as of January 25, 2026, and October 26, 2025. Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position, including maintaining a minimum interest coverage ratio. As of January 25, 2026, the Company was in compliance with all covenants. NOTE M - INCOME TAXES The Company’s tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse. The Company’s effective tax rate was 22.4 % and 21.8 % for the quarters ended January 25, 2026, and January 26, 2025, respectively. The change was primarily due to increased stock option expirations in the quarter ended January 25, 2026. Unrecognized tax benefits, if recognized as of January 25, 2026, would impact the Company’s effective tax rate by $ 16.8 million compared to $ 16.7 million as of January 26, 2025. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with immaterial expenses included during the quarters ended January 25, 2026, and January 26, 2025. The amount of accrued interest and penalties associated with unrecognized tax benefits was $ 2.9 million at January 25, 2026, and $ 2.6 million at January 26, 2025. Tax Examinations: The Company is regularly audited by federal, state, and foreign taxing authorities. The Company has elected to participate in the IRS Compliance Assurance Process (CAP) through fiscal 2027. The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. Current fiscal years under IRS CAP examination are 2025 and 2026. The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2019. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, as of January 25, 2026, it was not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions. 18 Table of Contents The Company is subject to various examinations by foreign tax authorities. With limited exceptions, the Company is no longer subject to foreign tax examinations for fiscal years prior to 2018. See Note K - Commitments and Contingencies for additional information. Tax Legislation: On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. OBBBA includes income tax provisions such as a permanent extension of certain provisions of the Tax Cuts and Jobs Act, elective deductions for domestic research and development, reinstatement of 100% first-year bonus depreciation, and modifications to the international tax framework. The Company assessed the provisions of OBBBA and determined the changes were not material to the Company's tax provision, and does not expect a material impact on the Company's consolidated financial statements in future reporting periods. The Organization for Economic Cooperation and Development published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which is designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum tax of 15%. Many countries have enacted, or begun the process of enacting, laws based on the Pillar Two framework. The Company considered the applicable tax laws in relevant jurisdictions and concluded the impact of Pillar Two was not material to the Company's tax provision for the quarter ended January 25, 2026. The Company will continue to evaluate the impact of such legislative changes but does not expect the new tax laws to have a material impact on the Company’s consolidated financial statements in future reporting periods. NOTE N - EARNINGS PER SHARE DATA The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. Diluted earnings per share was calculated using the treasury stock method. The shares used as the denominator for those computations are as follows: Quarter Ended In thousands January 25, 2026 January 26, 2025 Basic Weighted-average Shares Outstanding 550,477 549,460 Dilutive Potential Common Shares 229 395 Diluted Weighted-average Shares Outstanding 550,706 549,854 Antidilutive Potential Common Shares 17,733 19,778 NOTE O - SEGMENT REPORTING Segment Results: The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International. The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels, including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the U.S. This segment also includes the results from the Company’s MegaMex Foods joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S. The International segment processes, markets, and sells the Company's products through retail and foodservice channels internationally. This segment also includes the results from the Company’s international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil. The results of each segment are regularly provided to the Company's Interim Chief Executive Officer, who is the chief operating decision maker (CODM). The CODM primarily uses net sales and segment profit to compare results to the prior year, annual operating plan, and periodic forecasts when evaluating segment performance and allocating resources. The accounting policies of the segments are generally the same as those presented in Note A - Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the fiscal year ended October 26, 2025 . Intersegment sales are eliminated in consolidation and are not reviewed when evaluating segment performance. Segment profit also excludes unallocated general corporate expenses, deferred compensation, non-recurring expenses associated with the Transform and 19 Table of Contents Modernize initiative, corporate restructuring plan costs, and interest and other income and expense. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. Segment results, including the significant expense categories regularly provided to the CODM, are provided below. Certain portions of these expenses are retained at the corporate level and are presented in Net Unallocated Expense. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. The Company does not represent that these segments, if operated independently, would report the profit and other financial information shown. Quarter Ended January 25, 2026 In thousands Retail Foodservice International Total Net Sales $ 1,847,806 $ 998,227 $ 181,284 Cost of Products Sold 1,619,712 794,438 142,885 Selling, General, and Administrative 140,846 47,248 22,345 Equity in Earnings of Affiliates 8,942 — 6,824 Noncontrolling Interest (Earnings) Loss — — 32 Segment Profit $ 96,190 $ 156,541 $ 22,910 $ 275,641 Net Unallocated Expense 41,298 Noncontrolling Interest Earnings (Loss) ( 32 ) Earnings Before Income Taxes $ 234,312 Quarter Ended January 26, 2025 In thousands Retail Foodservice International Total Net Sales $ 1,890,133 $ 930,185 $ 168,495 Cost of Products Sold 1,640,761 743,519 129,053 Selling, General, and Administrative 139,528 47,840 25,170 Equity in Earnings of Affiliates 9,303 — 6,527 Noncontrolling Interest (Earnings) Loss — — 45 Segment Profit $ 119,147 $ 138,826 $ 20,845 $ 278,818 Net Unallocated Expense 60,700 Noncontrolling Interest Earnings (Loss) ( 45 ) Earnings Before Income Taxes $ 218,073 The Company’s CODM reviews assets and capital expenditures at a consolidated level and does not use assets by segment to evaluate performance or allocate resources. Therefore, the Company does not disclose these measures by segment. Depreciation and amortization expense is included in the measure of segment profit and disclosed below. In thousands Quarter Ended January 25, 2026 January 26, 2025 Depreciation and Amortization Retail $ 35,563 $ 36,210 Foodservice 20,797 19,952 International 4,566 4,332 Corporate 6,168 5,379 Total Depreciation and Amortization $ 67,095 $ 65,872 Disaggregated Revenues: The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar products are: Quarter Ended In thousands January 25, 2026 January 26, 2025 Perishable $ 2,238,330 $ 2,151,822 Shelf-stable 788,987 836,991 Total Net Sales $ 3,027,317 $ 2,988,813 20 Table of Contents Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. NOTE P - RESTRUCTURING The Company is undertaking a corporate restructuring plan designed to reduce administrative expenses, improve efficiencies, and align its workforce to the Company’s future needs, while enabling continued investment in the Company’s growth. The restructuring includes a voluntary early retirement program for certain groups of employees, the closing of certain open roles, involuntary role reductions, and making select changes to benefit programs. The Company expects to incur restructuring charges of approximately $ 22.0 million for one-time pension benefits, cash severance payments, other employee benefit costs, and professional fees. The charges were primarily recognized in the fourth quarter of fiscal 2025 and the first quarter of fiscal 2026. Of the estimated charges, the Company expects that approximately $ 9.0 million will be cash expenditures during fiscal 2026. The Company recognized $ 8.5 million of costs associated with restructuring activities during the first quarter of fiscal 2026. There were no restructuring costs recognized during the first quarter of fiscal 2025. All costs are unallocated corporate expenses which are not included in any of the reportable segments' measure of segment profit. A summary of these costs by type is as follows: In thousands Location on Consolidated Statements of Operations Quarter Ended January 25, 2026 Total Plan Costs Cash Severance Selling, General, and Administrative $ 6,721 $ 6,721 Employee Benefits Selling, General, and Administrative 1,342 1,342 Professional Fees Selling, General, and Administrative 413 1,007 Pension Benefits Other Income (Expense), Net — 12,696 Total Restructuring Costs $ 8,476 $ 21,767 The liability for cash severance and employee benefits was recorded in Employee-related Expenses and the liability for professional fees was recorded in Accounts Payable. The reconciliation of the beginning and ending liability balances showing activity during the year is as follows: In thousands Cash Severance Employee Benefits Professional Fees Total Liability Balances at October 26, 2025 $ — $ — $ 594 $ 594 Costs Incurred and Charged to Expense 6,721 1,342 413 8,476 Costs Paid or Otherwise Settled ( 6,282 ) ( 1,034 ) ( 794 ) ( 8,110 ) Liability Balances at January 25, 2026 $ 440 $ 308 $ 213 $ 961