Tyson Foods, the Springdale, Arkansas-based meat producer, lowered its fiscal 2026 adjusted operating income forecast to a range of $2.1 billion to $2.3 billion, down from its previous estimate of $2.2 billion to $2.4 billion. The company also projected a deeper loss in its beef segment for the year.
Tyson Foods' beef segment posted an adjusted operating loss for the third quarter ended June 27, versus a $116 million loss a year earlier.
For the third quarter, Tyson Foods reported total sales of $13.87 billion, roughly flat compared to $13.88 billion in the same period a year earlier. Adjusted earnings per share came in at $0.99, missing the consensus estimate of $1.05 by $0.06, according to reports.
The company's beef business weighed on results: beef sales volumes fell 15.9% in the quarter, while prices rose 12.1%. Overall sales volumes dropped 2.8% year-over-year, as reported. The beef segment's adjusted operating loss widened to $138 million from $116 million in the prior-year period.
In contrast, the chicken segment continued to perform well, with adjusted operating income rising to $488 million from $448 million a year earlier and its adjusted operating margin expanding to 11.2% from 10.6%. The segment has now recorded seven consecutive quarters of growth.
Tyson Foods expects full-year sales to grow between 2.5% and 3.5% in fiscal 2026 and projects free cash flow of $1.3 billion to $1.7 billion. The company also forecast an adjusted operating loss of $500 million to $650 million for its beef segment in fiscal 2026, worsening from a previous forecast of a $350 million to $500 million loss.
CEO Donnie King said the company delivered strong third-quarter results, driven by continued strength in its chicken and prepared foods segments. According to Reuters, director Jeff Schomburger will succeed King as chief executive officer in October 2026.
The earnings report comes as the US government halted cattle imports from Mexico more than a year ago to prevent the spread of the flesh-eating New World screwworm.
Tyson Foods stock fell in premarket trading on Monday following the release of the report. Sources report a premarket decline of roughly 4% to about $55.70, while another source indicates a decline of about 3%. Reports on the day of the release describe the stock as sliding, though one headline suggests it was rallying.
In analyst actions, according to reports, Piper Sandler upgraded Tyson Foods to Overweight in April with a $75 price target and raised it to $80 in June. Barclays maintains a Buy rating with a $78 price target, according to reports.
