Tyson Foods Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.03%.
Did TSN Beat Earnings? Q1 2026 Results
Tyson Foods delivered a broad beat in fiscal Q1 2026, with adjusted EPS of $0.97 clearing the $0.94 consensus by 3.08% and revenue of $14.31 billion topping estimates by 2.11% on 5.1% year-over-year growth, though the results carried meaningful complexity beneath the headline numbers. The single most consequential drag was the Beef segment, which swung to an adjusted operating loss of $143 million from income of $6 million a year ago, as tight domestic cattle supply and elevated livestock costs overwhelmed a 17.2% average price increase, a dynamic management expects to persist with Beef guided to an adjusted operating loss of $250 million to $500 million for the full fiscal year. Chicken remained the company's engine, generating $459 million in adjusted segment income while posting its fifth consecutive quarter of volume growth at 3.7%, and full-year Chicken guidance of $1.65 billion to $1.90 billion anchors the company's total adjusted operating income outlook of $2.1 billion to $2.3 billion. The strength in poultry mirrors favorable demand trends visible across the broader chicken industry. Tyson also reduced net debt leverage to 2.0x and guided free cash flow of $1.1 billion to $1.7 billion for fiscal 2026.
- Prepared Foods delivered top and bottom-line growth
- Chicken reported fifth consecutive quarter of year-over-year volume gains (3.7% volume increase)
- Beef segment average price increased 17.2% but volumes declined 7.3%
- Pork segment adjusted operating income grew to $111 million from $73 million year-over-year
- Legal contingency accruals of $150 million recognized as reduction to sales impacted GAAP results
- Restructuring and related charges of $115 million impacted operating income
- Impairment of equity investments of $73 million impacted net income
“Our first quarter results reflect solid execution across our portfolio. Prepared Foods delivered top and bottom-line growth while Chicken reported its fifth consecutive quarter of year-over-year volume gains. As protein demand continues to increase, our consistent share gains demonstrate we are well-positioned to capture this momentum. I'm encouraged by the progress we've made and confident we will drive continued improvement across the controllable aspects of our business in fiscal 2026.”
Tyson Foods CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Tyson expects total company adjusted operating income of $2.1 billion to $2.3 billion. Segment-level guidance: Beef adjusted operating loss of ($500) million to ($250) million; Pork adjusted operating income of $250 million to $300 million; Chicken adjusted operating income of $1.65 billion to $1.90 billion; Prepared Foods adjusted operating income of $1.25 billion to $1.35 billion; International adjusted operating income of $150 million to $200 million. Corporate expenses and amortization (as adjusted) of $950 million to $975 million. Sales expected to grow 2-4% year-over-year. Capital expenditures of $0.7 billion to $1.0 billion. Net interest expense approximately $370 million. Free cash flow of $1.1 billion to $1.7 billion. Adjusted effective tax rate approximately 25%. USDA projects domestic protein production to increase approximately 1%, with beef production declining ~2%, pork production increasing ~2%, and chicken production increasing ~1%. Fiscal 2026 is a 53-week year.
TSN YoY Financials
TSN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.