Tyson Foods, Inc. (NYSE:TSN) shares rose Monday after the company reported second-quarter fiscal 2026 results that topped Wall Street expectations.
Earnings Snapshot
Sales were $13.653 billion, up 4.4% from a year earlier and above the consensus estimate of $13.611 billion. Excluding the impact of a $343 million legal contingency accrual recorded in the prior year, sales increased 1.8%.
Adjusted earnings were 87 cents per share, down 5% year over year but ahead of analysts’ estimates of 78 cents.
Adjusted operating income totaled $497 million, down 3% from a year earlier, while adjusted operating margin narrowed to 3.6% from 3.8%.
Segment Performance
Beef sales edged up to $5.205 billion from $5.196 billion, as pricing gains of 11.5% offset a 13.1% decline in volume. The segment reported an operating loss of $240 million and an adjusted operating loss of $202 million.
Pork sales rose to $1.579 billion from $1.244 billion a year earlier. Operating income and adjusted operating income were both $41 million.
Chicken sales increased to $4.286 billion from $4.141 billion. Segment operating income was $505 million, with adjusted operating income of $523 million.
Prepared Foods sales climbed to $2.511 billion from $2.396 billion. Segment operating income was $348 million, and adjusted operating income was $352 million.
International sales were $577 million, compared with $566 million a year earlier. Segment operating income was $38 million, and adjusted operating income was $37 million.
Cash Flow And Balance Sheet
Cash provided by operating activities was $829 million in the first six months, while free cash flow was $432 million.
Cash and cash equivalents totaled $500 million, with total liquidity of $3.7 billion as of March 28, 2026.
Outlook
For fiscal 2026, Tyson expects sales to grow 2% to 4% year over year. The company raised its adjusted operating income outlook to $2.2 billion to $2.4 billion, an increase of about $100 million at the midpoint.
Free cash flow is projected at $1.2 billion to $1.8 billion.
Tyson increased its chicken operating income forecast to $1.9 billion to $2.05 billion. The beef segment is expected to post a loss of $350 million to $500 million due to ongoing cattle cycle pressures, though management said losses should improve in the second half of the year.
Prepared Foods operating income is projected at $1.25 billion to $1.35 billion, while pork is expected to generate $250 million to $300 million.
Capital expenditures are forecast at $700 million to $1 billion for the fiscal year.
The United States Department of Agriculture expects U.S. protein production, including beef, pork, chicken and turkey, to rise about 1% compared with fiscal 2025.
TSN Price Action: Tyson Foods shares were up 2.37% at $65.19 at the time of publication on Monday. The stock is approaching its 52-week high of $66.41, according to Benzinga Pro data.
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