Item 1. Financial Statements
Item 1. FINANCIAL STATEMENTS
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Quarter Ended Six Months Ended
In thousands, except per share amounts
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Net Sales $ 2,972,600 $ 2,898,810 $ 5,999,917 $ 5,887,623
Cost of Products Sold 2,454,093 2,414,377 5,011,835 4,927,957
Gross Profit 518,507 484,433 988,082 959,666
Selling, General, and Administrative 318,624 251,432 560,322 514,445
Equity in Earnings of Affiliates 17,229 15,350 33,049 31,461
Operating Income 217,112 248,352 460,809 476,682
Interest Income 6,479 6,176 13,007 13,719
Interest Expense 19,822 19,516 39,550 38,977
Other Income (Expense), Net 2,294 ( 4,523 ) 6,109 ( 2,862 )
Earnings Before Income Taxes 206,063 230,489 440,375 448,561
Provision for Income Taxes 48,685 50,747 101,227 98,289
Net Earnings 157,378 179,742 339,147 350,272
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest ( 96 ) ( 275 ) ( 127 ) ( 320 )
Net Earnings Attributable to Hormel Foods Corporation $ 157,474 $ 180,017 $ 339,274 $ 350,592
Net Earnings Per Share:
Basic $ 0.29 $ 0.33 $ 0.62 $ 0.64
Diluted $ 0.29 $ 0.33 $ 0.62 $ 0.64
Weighted-average Shares Outstanding:
Basic 550,562 550,277 550,520 549,868
Diluted 550,915 550,611 550,810 550,233
See accompanying Notes to the Consolidated Financial Statements
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HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited
Quarter Ended Six Months Ended
In thousands
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Net Earnings $ 157,378 $ 179,742 $ 339,147 $ 350,272
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation 1,735 ( 28,120 ) 4,227 ( 55,199 )
Pension and Other Benefits 1,556 2,542 3,044 4,908
Derivatives and Hedging
3,542 ( 3,883 ) 10,490 11,979
Equity Method Investments ( 1,856 ) 1,902 ( 2,066 ) 2,376
Total Other Comprehensive Income (Loss)
4,977 ( 27,559 ) 15,694 ( 35,936 )
Comprehensive Income 162,355 152,183 354,842 314,336
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
( 151 ) ( 497 ) ( 88 ) ( 987 )
Comprehensive Income Attributable to Hormel Foods Corporation
$ 162,506 $ 152,680 $ 354,929 $ 315,323
See accompanying Notes to the Consolidated Financial Statements
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HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
In thousands, except share and per share amounts
April 26, 2026 October 26, 2025
Assets
Cash and Cash Equivalents $ 826,750 $ 670,679
Short-term Marketable Securities 33,107 32,909
Accounts and Other Receivables, Net
760,073 813,989
Inventories 1,750,914 1,747,279
Taxes Receivable 58,760 96,791
Prepaid Expenses and Other Current Assets 64,006 44,010
Total Current Assets 3,493,610 3,405,656
Goodwill 4,871,935 4,924,087
Intangible Assets 1,585,631 1,647,297
Pension Assets 206,699 211,826
Investments in Affiliates 568,549 533,984
Other Assets 451,769 431,500
Property, Plant, and Equipment, Net 2,166,093 2,238,770
Total Assets $ 13,344,286 $ 13,393,119
Liabilities and Shareholders’ Investment
Accounts Payable $ 669,380 $ 731,578
Accrued Expenses 78,726 55,772
Accrued Marketing Expenses 122,512 113,947
Employee-related Expenses 241,533 273,402
Interest and Dividends Payable 182,246 180,700
Taxes Payable 3,059 18,752
Current Maturities of Long-term Debt 505,335 6,646
Total Current Liabilities 1,802,791 1,380,796
Long-term Debt Less Current Maturities 2,351,004 2,850,778
Pension and Postretirement Benefits 353,569 358,984
Deferred Income Taxes 657,431 661,349
Other Long-term Liabilities 215,615 225,397
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 550,301,827 and 550,107,260 Shares, respectively
8,062 8,059
Additional Paid-in Capital 635,677 620,069
Accumulated Other Comprehensive Loss ( 227,991 ) ( 243,646 )
Retained Earnings 7,533,573 7,516,690
Hormel Foods Corporation Shareholders’ Investment 7,949,320 7,901,171
Noncontrolling Interest 14,556 14,644
Total Shareholders’ Investment 7,963,876 7,915,815
Total Liabilities and Shareholders’ Investment $ 13,344,286 $ 13,393,119
See accompanying Notes to the Consolidated Financial Statement s
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HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
Unaudited
Quarter Ended April 27, 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 January 26, 2025 549,785 $ 8,054 — $ — $ 602,887 $ 7,688,663 $ ( 271,263 ) $ 10,101 $ 8,038,442
Net Earnings (Loss)
180,017 ( 275 ) 179,742
Other Comprehensive Income (Loss)
( 27,338 ) ( 222 ) ( 27,559 )
Stock-based Compensation Expense
54 1 11,079 11,080
Exercise of Stock-based Compensation Awards, Net of Withholding Taxes
48 1 ( 156 ) ( 156 )
Declared Dividends – $ 0.2900 per Share
379 ( 159,987 ) ( 159,609 )
Balance at April 27, 2025 549,888 $ 8,056 — $ — $ 614,189 $ 7,708,693 $ ( 298,601 ) $ 9,604 $ 8,041,941
Quarter Ended April 26, 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 January 25, 2026 550,212 $ 8,061 — $ — $ 625,982 $ 7,537,481 $ ( 233,023 ) $ 14,707 $ 7,953,207
Net Earnings (Loss)
157,474 ( 96 ) 157,378
Other Comprehensive Income (Loss)
5,032 ( 55 ) 4,977
Stock-based Compensation Expense
65 1 9,525 9,526
Exercise of Stock-based Compensation Awards, Net of Withholding Taxes
25 — ( 220 ) ( 220 )
Declared Dividends – $ 0.2925 per Share
390 ( 161,383 ) ( 160,992 )
Balance at April 26, 2026 550,302 $ 8,062 — $ — $ 635,677 $ 7,533,573 $ ( 227,991 ) $ 14,556 $ 7,963,876
See accompanying Notes to the Consolidated Financial Statements
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HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
Unaudited
Six Months Ended April 27, 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)
350,592 ( 320 ) 350,272
Other Comprehensive Income (Loss) ( 35,270 ) ( 666 ) ( 35,936 )
Stock-based Compensation Expense 54 1 16,534 16,535
Exercise of Stock-based Compensation Awards, Net of Withholding Taxes
1,228 18 25,823 25,841
Declared Dividends – $ 0.5800 per Share
654 ( 319,436 ) ( 318,782 )
Balance at April 27, 2025 549,888 $ 8,056 — $ — $ 614,189 $ 7,708,693 $ ( 298,601 ) $ 9,604 $ 8,041,941
Six Months Ended April 26, 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)
339,274 ( 127 ) 339,147
Other Comprehensive Income (Loss) 15,655 40 15,694
Stock-based Compensation Expense 65 1 16,444 16,445
Exercise of Stock-based Compensation Awards, Net of Withholding Taxes
129 2 ( 1,328 ) ( 1,326 )
Declared Dividends – $ 0.5850 per Share
492 ( 322,391 ) ( 321,899 )
Balance at April 26, 2026 550,302 $ 8,062 — $ — $ 635,677 $ 7,533,573 $ ( 227,991 ) $ 14,556 $ 7,963,876
See accompanying Notes to the Consolidated Financial Statements
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HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
Six Months Ended
In thousands
April 26, 2026 April 27, 2025
Operating Activities
Net Earnings $ 339,147 $ 350,272
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization 135,921 129,835
Equity in Earnings of Affiliates ( 33,049 ) ( 31,461 )
Distributions Received from Equity Method Investees 19,301 26,144
Provision for Deferred Income Taxes ( 7,696 ) ( 286 )
Non-cash Investment Activities ( 5,249 ) 1,265
Stock-based Compensation Expense 16,445 16,535
Operating Lease Cost 21,608 19,107
Loss (Gain) on Sale of Business 36,706 10,800
Other Non-cash, Net 2,733 2,602
Changes in Operating Assets and Liabilities, Net of Divestitures:
Decrease (Increase) in Accounts Receivable 63,996 70,566
Decrease (Increase) in Inventories ( 23,110 ) ( 155,901 )
Decrease (Increase) in Prepaid Expenses and Other Assets ( 1,653 ) ( 4,905 )
Increase (Decrease) in Pension and Postretirement Benefits 3,685 20,635
Increase (Decrease) in Accounts Payable and Accrued Expenses ( 59,398 ) ( 77,321 )
Increase (Decrease) in Net Income Taxes Payable 18,765 ( 12,239 )
Net Cash Provided by (Used in) Operating Activities 528,153 365,646
Investing Activities
Net Sale (Purchase) of Securities ( 126 ) ( 4,735 )
Proceeds from Sale of Business 100,035 13,139
Purchases of Property, Plant, and Equipment ( 151,167 ) ( 147,250 )
Proceeds from Sales of Property, Plant, and Equipment 367 82
Proceeds from (Purchases of) Affiliates and Other Investments ( 5,316 ) ( 2,699 )
Proceeds from Company-owned Life Insurance 5,466 2,795
Net Cash Provided by (Used in) Investing Activities ( 50,742 ) ( 138,668 )
Financing Activities
Repayments of Long-term Debt and Finance Leases ( 3,652 ) ( 4,245 )
Dividends Paid on Common Stock ( 320,437 ) ( 314,225 )
Proceeds from Stock-based Compensation Plans, Net of Withholding Taxes ( 1,326 ) 25,841
Net Cash Provided by (Used in) Financing Activities ( 325,416 ) ( 292,629 )
Effect of Exchange Rate Changes on Cash 4,076 ( 6,542 )
Increase (Decrease) in Cash and Cash Equivalents 156,072 ( 72,193 )
Cash and Cash Equivalents at Beginning of Year 670,679 741,881
Cash and Cash Equivalents at End of Period $ 826,750 $ 669,688
Supplemental Non-cash Investing and Financing Activities:
Purchases of Property, Plant, and Equipment Included in Accounts Payable
$ 24,250 $ 20,383
See accompanying Notes to the Consolidated Financial Statements
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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: Certain amounts within Prepaid Expenses and Other Current Assets were reclassified to Accounts and Other Receivables, Net.
• Consolidated Condensed Statements of Cash Flows: Due to the reclassification noted above on the Consolidated Statements of Financial Position, there was an associated reclassification between Decrease (Increase) in Accounts Receivable and Decrease (Increase) in Prepaid Expenses and Other Assets.
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 Company expects to adopt the ASU in connection with its Annual Report on Form 10-K for the fiscal year ending October 25, 2026. While the standard will require additional disclosures related to the Company's income taxes, the Company does not expect the adoption to have a material effect on the Company’s financial condition or results of operations.
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,
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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 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 and transition approach. The adoption is not expected to have a material effect on the Company’s financial condition or results of operations.
In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) . The update is intended to improve the accounting for and disclosure of environmental credits and related obligations by establishing consistent guidance for recognition, measurement, presentation, and disclosure. The ASU introduces a comprehensive model and requires enhanced disclosures to improve transparency and comparability. The guidance is effective for interim and annual reporting for the Company's fiscal year ending October 28, 2029, on a retrospective basis with early adoption permitted. The Company is currently assessing the impact of adopting the updated guidance.
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
Whole-bird Turkey Transaction: On April 24, 2026, the Company completed the sale of its whole-bird turkey business to Willmar Poultry Innovations, LLC, a subsidiary of Life-Science Innovations, for $ 61.2 million including cash proceeds of $ 21.2 million and a secured promissory note with a face value of $ 40.0 million. Refer to Note F - Notes Receivable for additional information on the secured promissory note. The divestiture resulted in an estimated pre-tax loss of $ 61.0 million, including transaction costs, which was recognized in Selling, General, and Administrative. The transaction is subject to customary working capital adjustments, which the Company expects to finalize by the end of fiscal 2026.
The sale included the whole-bird production facility in Melrose, Minnesota, a feed mill in Swanville, Minnesota, and associated transportation assets. The Company continues to own and use the Jennie-O ® brand name. The buyer has assumed certain supply contracts with dedicated third-party hen growers and is contracted to provide co-manufacturing services to the Company in the future. There was a nominal impact to the Company's future commitments. Results of operations for the whole-bird turkey business were primarily reflected in the Retail segment.
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 expected to be settled in fiscal 2026. 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, L.P., and will account for this interest as an equity method investment. The Company recorded the remaining 49 % equity interest in Joy Topco, L.P. 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, L.P. 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.
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NOTE C - GOODWILL AND INTANGIBLE ASSETS
Goodwill: The change in the carrying amount of goodwill for the six months ended April 26, 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)
( 53,086 ) ( 1,330 ) — ( 54,416 )
Foreign Currency Translation — — 2,264 2,264
Balance at April 26, 2026
$ 2,863,709 $ 1,747,025 $ 261,200 $ 4,871,935
(1) Goodwill sold during fiscal 2026 was due to the sale of the Company's controlling equity interest in Justin's, LLC ($ 34.9 million) and the divestiture of the whole-bird turkey business ($ 19.5 million). See Note B - Acquisitions and Divestitures for additional information.
Intangible Assets: The Company's intangible assets by type are:
April 26, 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 $ ( 58,980 ) $ 48,668 $ 134,328 $ ( 78,565 ) $ 55,763
Other Definite-lived Intangibles 59,095 ( 26,390 ) 32,704 59,445 ( 24,620 ) 34,824
Trade Names/Trademarks — — — 6,210 ( 6,210 ) —
Foreign Currency Translation — ( 2,867 ) ( 2,867 ) — ( 4,476 ) ( 4,476 )
Total Definite-lived Intangible Assets $ 166,742 $ ( 88,237 ) $ 78,505 $ 199,982 $ ( 113,872 ) $ 86,111
Indefinite-lived Intangible Assets
Brands/Trade Names/Trademarks (1)
$ 1,513,306 $ 1,567,623
Foreign Currency Translation ( 6,180 ) ( 6,437 )
Total Indefinite-lived Intangible Assets 1,507,126 1,561,186
Total Intangible Assets $ 1,585,631 $ 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 in the first quarter of fiscal 2026. See Note B - Acquisitions and Divestitures for additional information.
Amortization expense on intangible assets is as follows:
Quarter Ended Six Months Ended
In thousands April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Amortization Expense $ 3,014 $ 3,588 $ 6,084 $ 7,418
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
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NOTE D - INVESTMENTS IN AFFILIATES
Ownership: As of April 26, 2026, the Company's equity method investments include:
Segment Ownership Percentage
MegaMex Foods, LLC Retail 50 %
Joy Topco, L.P. (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, L.P. 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 Q - Segment Reporting. Equity in earnings from corporate venturing investments is not included in any of the reportable segments' measure of segment profit.
Distributions: Distributions received from equity method investees consists of:
In thousands Quarter Ended Six Months Ended
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Distributions $ 6,250 $ 6,250 $ 19,301 $ 26,144
Basis Difference: The initial and unamortized basis differences as of April 26, 2026, are:
In thousands
Initial Basis Difference Unamortized Basis Difference
Garudafood (1)
$ 324,828 $ 132,283
MegaMex Foods, LLC 21,273 7,184
(1) The Garudafood remaining unamortized basis difference includes the impact of foreign currency translation and impairment.
Fair Value: The fair value of the common stock held in Garudafood was $ 224.2 million as of April 24, 2026, based on the closing market price on the Indonesia Stock Exchange (IDX) and converted to U.S. dollars. The Company's other equity method investments do not have readily determinable fair values.
As of April 26, 2026, and in accordance with the Company's accounting procedures and internal controls, the Company evaluated whether an other‑than‑temporary impairment existed for its investment in Garudafood, which had a carrying value of $ 247.4 million. This evaluation included consideration of the severity and duration of the carrying value in excess of Garudafood’s quoted market value, performance of Garudafood's stock price, Garudafood's operating performance and outlook, and the Company's strategic intent and ability to hold the investment. The Company considers Garudafood a long-term strategic partner, maintains representation on Garudafood’s Board of Commissioners, and has the intent and ability to retain its investment for a period of time sufficient to allow for recovery in market value. Based on the evaluation of the factors above, the Company does not consider the investment to be other‑than‑temporarily impaired as of April 26, 2026. The Company will continue to assess the value of its investment in Garudafood, which may result in the recognition of an other‑than‑temporary impairment in the future.
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 $ 55.5 million and $ 38.8 million as of April 26, 2026, and October 26, 2025, respectively. The amounts due from equity method investees were $ 7.8 million and $ 11.9 million as of April 26, 2026, and October 26, 2025, respectively.
NOTE E - ACCOUNTS AND OTHER RECEIVABLES, NET
The components of accounts and other receivables, net are:
In thousands
April 26, 2026 October 26, 2025
Trade Accounts
$ 728,472 $ 788,514
Other
35,420 29,218
Total Receivables
763,892 817,731
Less: Allowance for Credit Losses 3,819 3,743
Accounts and Other Receivables, Net
$ 760,073 $ 813,989
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Trade accounts receivable represents amounts billed and outstanding from customers in the ordinary course of business. Other receivables consists of miscellaneous amounts due to the Company such as insurance and other contractual proceeds or reimbursements. As of April 26, 2026, other receivables also includes the current portion of a secured promissory note related to the divestiture of the whole-bird turkey business.
Concentration of Credit Risk: The Company is exposed to credit risk from its customers. The Company regularly assesses the credit worthiness of its customers. As of April 26, 2026, one customer accounted for more than 10 percent of net accounts receivable.
NOTE F - NOTES RECEIVABLE
In connection with the sale of the whole-bird turkey business on April 24, 2026, the Company entered into a $ 40.0 million secured promissory note receivable that matures on December 31, 2030, and bears interest at a rate of 6 % per annum. Principal and interest payments are to be made in equal annual installments beginning December 31, 2026. The Company determined the fair value of the note approximated face value at inception and no premium or discount was recognized. The note is accounted for at amortized cost and interest income is recognized using the effective interest method. The Company evaluated the note for expected credit losses and concluded that the allowance was immaterial as of April 26, 2026. The current and long-term portions of the note were reflected in Accounts and Other Receivables, Net and Other Assets, respectively.
NOTE G - INVENTORIES
Principal components of inventories are:
In thousands
April 26, 2026 October 26, 2025
Finished Products $ 1,053,750 $ 1,055,472
Raw Materials and Work-in-Process 419,661 414,436
Operating Supplies 138,549 142,643
Maintenance Materials and Parts 138,953 134,729
Total Inventories
$ 1,750,914 $ 1,747,279
NOTE H - PROPERTY, PLANT, AND EQUIPMENT
Property, plant, and equipment consists of the following:
In thousands
April 26, 2026 October 26, 2025
Land
$ 75,054 $ 74,710
Buildings
1,482,010 1,537,276
Equipment
3,001,672 3,014,677
Construction in Progress
284,959 286,466
Less: Allowance for Depreciation
( 2,677,603 ) ( 2,674,359 )
Property, Plant, and Equipment, Net
$ 2,166,093 $ 2,238,770
NOTE I - 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
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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 N - 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 quarter and six months ended April 26, 2026, and April 27, 2025.
Volume: The Company’s outstanding contracts related to its commodity hedging programs include:
In millions
April 26, 2026 October 26, 2025
Corn 31.0 bushels
27.4 bushels
Lean Hogs 210.0 pounds
188.6 pounds
Natural Gas 3.8 MMBtu
3.6 MMBtu
Diesel Fuel
7.7 gallons
7.5 gallons
Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are:
April 26, 2026 October 26, 2025
In thousands
Assets
Liabilities
Assets
Liabilities
Gross Fair Value of Commodity Contracts
$ 22,516 $ ( 3,394 ) $ 9,862 $ ( 4,243 )
Counterparty and Collateral Netting Offset (1)
( 6,986 ) 3,394 304 4,243
Amounts Recognized in Prepaid Expenses and Other Current Assets
$ 15,530 $ — $ 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 $ 3.6 million (including cash payable of $ 10.7 million and $ 7.1 million of realized gain) as of April 26, 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
April 26, 2026 October 26, 2025
Commodity Contracts
Accounts Payable (1)
$ 696 $ ( 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 April 26, 2026, the Company included in AOCL pre-tax hedging gains of $ 19.8 million on commodity contracts and gains of $ 10.0 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 Six Months Ended
In thousands April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Commodity Contracts
$ 10,830 $ ( 6,135 ) $ 22,461 $ 13,000
Excluded Component (1)
( 25 ) ( 96 ) ( 15 ) ( 183 )
(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.
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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 Six Months Ended
In thousands April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Commodity Contracts
Cost of Products Sold
$ 5,910 $ ( 1,326 ) $ 8,104 $ ( 3,467 )
Interest Rate Contracts Interest Expense
247 247 494 494
See Note K - 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 Six Months Ended
In thousands
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Net Earnings Attributable to Hormel Foods Corporation $ 157,474 $ 180,017 $ 339,274 $ 350,592
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL 5,910 ( 1,326 ) 8,104 ( 3,467 )
Amortization of Excluded Component from Options ( 221 ) ( 211 ) ( 447 ) ( 419 )
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures (1)
215 ( 571 ) 123 1,133
Total Gain (Loss) on Commodity Contracts
5,904 ( 2,107 ) 7,780 ( 2,753 )
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL 247 247 494 494
Total Gain (Loss) on Interest Rate Contracts
247 247 494 494
Total Gain (Loss) Recognized in Earnings $ 6,152 $ ( 1,860 ) $ 8,274 $ ( 2,259 )
(1) Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and six months ended April 26, 2026, and April 27, 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 J - PENSION AND OTHER POSTRETIREMENT BENEFITS
Net periodic cost of defined benefit plans consists of:
Pension Benefits
Quarter Ended Six Months Ended
In thousands
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Service Cost $ 10,034 $ 11,973 $ 20,068 $ 23,947
Interest Cost 18,066 17,646 36,131 35,292
Expected Return on Plan Assets ( 22,351 ) ( 21,737 ) ( 44,701 ) ( 43,474 )
Amortization of Prior Service Cost (Credit)
128 319 256 639
Recognized Actuarial Loss (Gain)
2,190 3,014 4,380 6,027
Net Periodic Cost
$ 8,067 $ 11,215 $ 16,134 $ 22,431
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Postretirement Benefits
Quarter Ended Six Months Ended
In thousands
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Service Cost $ 35 $ 41 $ 70 $ 83
Interest Cost 2,202 2,479 4,403 4,959
Amortization of Prior Service Cost (Credit)
( 7 ) ( 14 ) ( 14 ) ( 12 )
Recognized Actuarial Loss (Gain)
( 307 ) ( 40 ) ( 614 ) ( 80 )
Net Periodic Cost
$ 1,922 $ 2,466 $ 3,845 $ 4,950
NOTE K - 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 January 25, 2026
$ ( 112,033 ) $ ( 141,530 ) $ 18,985 $ 1,554 $ ( 233,023 )
Unrecognized Gains (Losses) — —
Gross 1,790 46 10,805 ( 530 ) 12,111
Tax Effect — — ( 2,618 ) — ( 2,618 )
Reclassification into Net Earnings — — — —
Gross — 2,004 (1)
( 6,157 ) (2)
( 1,326 ) (3)
( 5,480 )
Tax Effect — ( 493 ) 1,512 — 1,018
Change Net of Tax 1,790 1,556 3,542 ( 1,856 ) 5,032
Balance at April 26, 2026
$ ( 110,243 ) $ ( 139,973 ) $ 22,527 $ ( 303 ) $ ( 227,991 )
Balance at October 26, 2025
$ ( 114,431 ) $ ( 143,017 ) $ 12,038 $ 1,763 $ ( 243,646 )
Unrecognized Gains (Losses)
Gross 4,188 22 22,446 149 26,805
Tax Effect — — ( 5,475 ) — ( 5,475 )
Reclassification into Net Earnings
Gross — 4,008 (1)
( 8,599 ) (2)
( 2,215 ) (3)
( 6,806 )
Tax Effect — ( 987 ) 2,117 — 1,130
Change Net of Tax 4,188 3,044 10,490 ( 2,066 ) 15,655
Balance at April 26, 2026
$ ( 110,243 ) $ ( 139,973 ) $ 22,527 $ ( 303 ) $ ( 227,991 )
(1) Included in computation of net periodic cost. See Note J - Pension and Other Postretirement Benefits for additional information.
(2) Included in Cost of Products Sold and Interest Expense. See Note I - Derivatives and Hedging for additional information.
(3) Included in Equity in Earnings of Affiliates.
NOTE L - 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.
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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 April 26, 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
$ 33,107 $ 7,411 $ 25,696 $ —
Other Trading Securities
224,374 — 224,374 —
Commodity Derivatives
22,516 15,188 7,328 —
Total Assets at Fair Value $ 279,997 $ 22,599 $ 257,398 $ —
Liabilities at Fair Value
Deferred Compensation
$ 62,734 $ — $ 62,734 $ —
Commodity Derivatives
3,410 1,398 2,012 —
Total Liabilities at Fair Value $ 66,144 $ 1,398 $ 64,746 $ —
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 equities, 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.
Other Trading Securities and Deferred Compensation: Other trading securities includes life insurance policies held in a rabbi trust maintained by the Company to fund certain supplemental executive retirement plans and deferred compensation plans. The rabbi trust is valued based on the insurance policies' cash surrender value and the fair value of the underlying investments. These policies are classified as Level 2. The majority of the policies 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 and six months ended April 26, 2026, investments held by the rabbi trust generated gains of $ 2.0 million and $ 5.2 million, respectively, compared to losses of $ 3.7 million and $ 1.1 million, respectively, for the quarter and six months ended April 27, 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 the U.S. Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The portion of the
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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 and other receivables, accounts payable, and other liabilities, for which carrying value approximates fair value as they are generally short‑term in nature or otherwise expected to be settled at amounts that would not differ materially from fair value. 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 April 26, 2026, and $ 2.6 billion as of October 26, 2025. See Note N - 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.
During the quarter ended April 26, 2026, the Company recorded a $ 40.0 million secured promissory note receivable associated with the sale of the whole-bird turkey business. The Company determined the fair value of the note approximated face value at inception. Fair value was determined using discounted cash flows (Level 2).
There were no other material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the quarter and six months ended April 26, 2026, and April 27, 2025.
NOTE M - COMMITMENTS AND CONTINGENCIES
Commitments: During the quarter and six months ended April 26, 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 legal claims against the Company when losses become probable and reasonably estimable. The Company does not reduce these liabilities for potential insurance or third-party recoveries; the Company accrues for insurance or other third-party recoveries when applicable. Future developments or settlements are uncertain and may require the Company to change such accruals as proceedings progress.
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 summary judgment motions remain pending. On May 20, 2026, the court ordered that the first trial related to these matters (if required) will involve only the class of direct purchaser plaintiffs and commence on October 8, 2026. The Company has not recorded any liability for these
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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.
Other Proceedings: While we cannot predict with certainty the results of other currently known legal proceedings against the Company, resolution of such matters, 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.
NOTE N - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
Long-term Debt consists of:
In thousands
April 26, 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 ( 5,428 ) ( 5,848 )
Unamortized Debt Issuance Costs ( 11,348 ) ( 12,775 )
Finance Lease Liabilities 20,444 23,122
Other Financing Arrangements 2,671 2,924
Total Debt
2,856,339 2,857,424
Less: Current Maturities of Long-term Debt 505,335 6,646
Long-term Debt Less Current Maturities $ 2,351,004 $ 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. During the second quarter of fiscal 2026, the notes were reclassified to Current Maturities of Long-term Debt.
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 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 I - 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.
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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 April 26, 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 April 26, 2026, the Company was in compliance with all covenants.
NOTE O - 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 23.6 % and 22.0 % for the quarter ended April 26, 2026, and April 27, 2025, respectively. The Company’s effective tax rate was 23.0 % and 21.9 % for the six months ended April 26, 2026, and April 27, 2025, respectively. The increase in the effective tax rate in fiscal 2026 was primarily due to the impact of the whole-bird turkey transaction in the quarter ended April 26, 2026.
Unrecognized tax benefits, if recognized as of April 26, 2026, would impact the Company’s effective tax rate by $ 17.4 million compared to $ 16.4 million as of April 27, 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 April 26, 2026, and April 27, 2025. The amount of accrued interest and penalties associated with unrecognized tax benefits was $ 3.2 million at April 26, 2026, and $ 2.8 million at April 27, 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 April 26, 2026, it was not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.
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 M - 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
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tax provision, and does not expect the provisions to have 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 six months ended April 26, 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 P - 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 Six Months Ended
In thousands
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Basic Weighted-average Shares Outstanding
550,562 550,277 550,520 549,868
Dilutive Potential Common Shares 353 334 291 365
Diluted Weighted-average Shares Outstanding
550,915 550,611 550,810 550,233
Antidilutive Potential Common Shares 18,123 22,394 17,928 21,086
NOTE Q - 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 equity method investments in MegaMex Foods, LLC and Joy Topco, L.P.
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 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.
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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 April 26, 2026
In thousands Retail Foodservice International Total
Net Sales $ 1,789,665 $ 996,711 $ 186,225
Cost of Products Sold 1,513,835 792,010 146,904
Selling, General, and Administrative 131,364 48,917 23,686
Equity in Earnings of Affiliates 11,174 — 6,404
Noncontrolling Interest (Earnings) Loss — — 96
Segment Profit $ 155,640 $ 155,784 $ 22,135 $ 333,559
Net Unallocated Expense 127,400
Noncontrolling Interest Earnings (Loss) ( 96 )
Earnings Before Income Taxes $ 206,063
Quarter Ended April 27, 2025
In thousands Retail Foodservice International Total
Net Sales $ 1,783,835 $ 936,442 $ 178,533
Cost of Products Sold 1,518,585 748,234 144,136
Selling, General, and Administrative 136,588 47,574 23,167
Equity in Earnings of Affiliates 8,473 — 6,902
Noncontrolling Interest (Earnings) Loss — — 275
Segment Profit $ 137,135 $ 140,633 $ 18,407 $ 296,175
Net Unallocated Expense 65,411
Noncontrolling Interest Earnings (Loss) ( 275 )
Earnings Before Income Taxes $ 230,489
Six Months Ended April 26, 2026
In thousands Retail Foodservice International Total
Net Sales $ 3,637,471 $ 1,994,937 $ 367,509
Cost of Products Sold 3,133,547 1,586,448 289,789
Selling, General, and Administrative 272,210 96,164 46,031
Equity in Earnings of Affiliates 20,116 — 13,229
Noncontrolling Interest (Earnings) Loss — — 127
Segment Profit $ 251,829 $ 312,325 $ 45,046 $ 609,200
Net Unallocated Expense 168,698
Noncontrolling Interest Earnings (Loss) ( 127 )
Earnings Before Income Taxes $ 440,375
Six Months Ended April 27, 2025
In thousands Retail Foodservice International Total
Net Sales $ 3,673,968 $ 1,866,627 $ 347,028
Cost of Products Sold 3,159,346 1,491,753 273,189
Selling, General, and Administrative 276,116 95,414 48,337
Equity in Earnings of Affiliates 17,776 — 13,429
Noncontrolling Interest (Earnings) Loss — — 320
Segment Profit $ 256,281 $ 279,459 $ 39,252 $ 574,992
Net Unallocated Expense 126,111
Noncontrolling Interest Earnings (Loss) ( 320 )
Earnings Before Income Taxes $ 448,561
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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 Six Months Ended
April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Depreciation and Amortization
Retail $ 35,501 $ 34,955 $ 71,064 $ 71,165
Foodservice 21,008 19,527 41,806 39,479
International 4,937 4,194 9,504 8,525
Corporate 7,379 5,287 13,547 10,666
Total Depreciation and Amortization $ 68,826 $ 63,963 $ 135,921 $ 129,835
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 Six Months Ended
In thousands April 26, 2026 April 27, 2025 April 26, 2026 April 27, 2025
Perishable $ 2,218,854 $ 2,076,241 $ 4,457,184 $ 4,228,063
Shelf-stable 753,746 822,569 1,542,733 1,659,560
Total Net Sales $ 2,972,600 $ 2,898,810 $ 5,999,917 $ 5,887,623
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 R - 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 $ 0.1 million and $ 8.5 million of costs associated with restructuring activities during the second quarter and first six months of fiscal 2026. There were no restructuring costs recognized during the second quarter and first six months 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 April 26, 2026
Six Months Ended April 26, 2026
Total Plan Costs
Cash Severance Selling, General, and Administrative $ 6 $ 6,727 $ 6,727
Employee Benefits Selling, General, and Administrative 44 1,386 1,386
Professional Fees Selling, General, and Administrative 5 418 1,012
Pension Benefits Other Income (Expense), Net — — 12,696
Total Restructuring Costs $ 55 $ 8,531 $ 21,821
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 6,727 1,386 418 8,531
Costs Paid or Otherwise Settled ( 6,639 ) ( 1,359 ) ( 1,006 ) ( 9,004 )
Liability Balances at April 26, 2026
$ 87 $ 27 $ 7 $ 121
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.