How does Hormel Foods (HRL) make money?

Hormel Foods (HRL) generates revenue primarily from Retail Segment, which accounted for 60.9% of total revenue in TTM through Q2 2026. The company reported $12.22B in revenue and converted 3.8% of it into net profit, equivalent to roughly $466.82M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Hormel Foods (HRL)?

Hormel Foods (HRL) reported a gross profit margin of 15.7% in TTM through Q2 2026, equivalent to $1.92B in gross profit on $12.22B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Hormel Foods (HRL)?

Hormel Foods (HRL) reported an operating profit margin of 5.8% in TTM through Q2 2026, equivalent to $702.73M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Hormel Foods (HRL)?

Hormel Foods (HRL) reported a net profit margin of 3.8% in TTM through Q2 2026, equivalent to $466.82M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Hormel Foods (HRL) profitable?

Yes. Hormel Foods (HRL) reported $466.82M in net income for TTM through Q2 2026, with a net profit margin of 3.8%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Hormel Foods (HRL) spend on capital expenditures?

Hormel Foods (HRL) spent $314.82M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Hormel Foods (HRL) generate?

Hormel Foods (HRL) generated $692.94M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 5.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Hormel Foods (HRL)?

Hormel Foods (HRL) had an effective tax rate of 28.8% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Hormel Foods (HRL)?

Hormel Foods (HRL) reports revenue across 3 reportable product segments, led by Retail Segment at 60.9% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Hormel Foods Makes Money: 2026 Visual Revenue Map

Hormel Foods (HRL) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 26, 2026 (reported May 28, 2026).

Hormel Foods discloses geographic revenue only in annual filings. to view the full breakdown.

Hormel Foods (HRL) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Hormel Foods (HRL) in TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Retail Segment	$7.44B	60.9%
Foodservice Segment	$4.06B	33.2%
International Segment	$718.11M	5.9%
Total	$12.22B	100%

Retail Segment$7.44B
Foodservice Segment$4.06B
International Segment$718.11M
Total$12.22B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Hormel Foods (HRL) reports revenue across 3 operating segments; the largest segment was Retail Segment at 60.9%, followed by Foodservice Segment (33.2%) and International Segment (5.9%).

Frequently asked questions

Data & methodology

Hormel Foods (HRL) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation