Tyson Foods Inc. (NYSE:TSN) stock traded higher Monday after the company reported mixed third-quarter results and narrowed its full-year sales outlook.
Earnings Snapshot
Adjusted earnings were 99 cents per share, matching Wall Street estimates. Revenue totaled $13.87 billion, missing the consensus estimate of $14.12 billion.
Sales were essentially flat year over year at $13.9 billion. Excluding a $98 million legal contingency accrual recorded as a reduction to sales, revenue increased 0.6%.
Adjusted operating income rose 8% year over year to $547 million. Adjusted operating margin expanded to 3.9% from 3.6% a year earlier.
As of June 27, Tyson had liquidity of $4.0 billion. Operating cash flow totaled $1.5 billion during the first nine months of fiscal 2026, while free cash flow reached $913 million.
Segment Performance
Beef sales declined to $5.39 billion from $5.60 billion. A 12.1% increase in pricing was offset by a 15.9% decline in volume. The segment posted an adjusted operating loss of $138 million, compared with a loss of $116 million a year earlier.
Pork sales increased to $1.58 billion from $1.51 billion, driven by a 5.2% increase in volume. Adjusted operating income rose to $60 million from $50 million.
Chicken sales rose to $4.26 billion from $4.22 billion, reflecting a 2.2% increase in pricing and 1.0% volume growth. Adjusted operating income increased to $488 million from $448 million.
Prepared Foods sales increased to $2.56 billion from $2.52 billion. Adjusted operating income declined to $321 million from $334 million.
International sales rose to $601 million from $557 million. Adjusted operating income increased to $48 million from $45 million.
Outlook
Tyson narrowed its fiscal 2026 sales outlook to a range of $55.80 billion to $56.35 billion, compared with its prior forecast of $55.53 billion to $56.62 billion. The updated guidance remains below the analyst consensus estimate of $56.76 billion.
The U.S. Department of Agriculture expects total U.S. protein production, including beef, pork, chicken and turkey, to increase about 1% in fiscal 2026 from fiscal 2025 levels.
Tyson reaffirmed its expectation for fiscal 2026 adjusted operating income of $2.1 billion to $2.3 billion. The company expects Prepared Foods adjusted operating income of $1.3 billion to $1.35 billion.
Tyson said the phased reopening of the U.S.-Mexico border for cattle imports could improve long-term cattle availability and provide some relief to its struggling beef business beginning in 2027.
However, management cautioned the move will not materially affect results in the remainder of fiscal 2026 and “will not solve the entire gap of beef losses” caused by tight cattle supplies and margin pressure.
TSN Price Action: Tyson Foods shares were up 1.90% at $59.06 at the time of publication on Monday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment