Hormel Foods Corporation (NYSE: HRL) shares gained 3% intra-day on Thursday after the packaged foods producer reported fourth-quarter earnings in line with expectations and issued a more optimistic fiscal 2026 outlook that helped overshadow sizable impairment charges in the period.

The maker of Spam, Skippy and Planters reported fourth-quarter adjusted earnings of $0.32 per share, matching analyst forecasts. Revenue rose 1.5% year over year to $3.2 billion, slightly below the $3.24 billion consensus estimate. On a GAAP basis, the company recorded a quarterly loss of $0.10 per share, reflecting $234 million in non-cash impairment charges related mainly to a minority investment in its International segment and certain intangible assets in the Retail segment.

Despite the challenging quarter, investors focused on Hormel's forward guidance. The company projected fiscal 2026 earnings of $1.43 to $1.51 per share on revenue of $12.2 billion to $12.5 billion, ahead of analyst expectations of $1.37 per share.

Organic net sales in the fourth quarter increased 2%. The Foodservice segment was a standout, delivering 6.5% organic growth. However, adjusted segment profit declined across all divisions, with Retail segment profit down 23% despite a 1% increase in sales, underscoring ongoing margin pressures in that business.