Hormel Foods (HRL) stock fell 9.1% to $21.57 on Thursday after the company lowered its fiscal 2026 sales outlook and reported third-quarter revenue below Wall Street expectations.

The Austin, Minnesota-based company — founded in 1891 and known for brands including SPAM, Skippy, Jennie-O and Planters — now expects fiscal 2026 net sales of $12.1 billion to $12.2 billion, down from its prior forecast of $12.2 billion to $12.5 billion. Hormel's fiscal year ends in late October, so the revision covers a year that is already three-quarters complete.

For the third quarter, Hormel reported revenue of $2.96 billion, a 2.4% decline from a year earlier and below analyst estimates of $3.04 billion. Adjusted earnings per share came in at 37 cents, ahead of the 35-cent estimate.

CEO-elect John Ghingo said the quarter reflected portfolio changes, lower commodity-based pricing in parts of the business, and continued pressure on consumers.

“The results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure,” Ghingo said.

The retail segment, Hormel’s largest revenue contributor, was a major source of weakness. Sales in the segment fell 4% during the quarter, while volumes dropped 9%. The company said lower prices for commodity turkey and private-label snack nuts were the main drivers of the decline. Snack nuts are a relatively recent pillar for Hormel, which acquired the Planters brand from Kraft Heinz in 2021 in a deal valued at roughly $3.35 billion.

Packaged food demand remained soft more broadly, as higher living costs continued to weigh on consumers. That pressure is sector-wide, with major packaged-food makers reporting shoppers trading down to store brands and buying fewer branded items as cumulative inflation strains household budgets. Hormel also completed the sale of its Brazilian CERATTI business during the quarter as part of its effort to focus on higher-growth markets.

Despite the weaker sales performance, Hormel raised its full-year adjusted EPS guidance to $1.45 to $1.51, from a previous range of $1.43 to $1.51. The company also narrowed its organic sales growth forecast to 1% to 2%, compared with 1% to 4% previously.

Oppenheimer analysts described the quarter as mixed and said they expect the stock to trade lower. They added that they will be watching whether Hormel can return to its long-term targets of 2% to 3% net sales growth and 5% to 7% operating profit growth.

Earlier this week, Hormel named former Tyson Foods executive Ash Bhumbla as chief financial officer, effective in September. Ghingo was appointed CEO last month after previously leading Hormel's Applegate natural-meats business.

HRL closed Thursday at $21.57, down 9.1% on the session. Hormel has raised its annual dividend for more than 50 consecutive years, one of the longest streaks among U.S. companies, and its next scheduled report — the fiscal fourth quarter — typically arrives in early December.