Tyson Foods Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.44%.
Did TSN Beat Earnings? Q2 2026 Results
Tyson Foods delivered a stronger-than-expected second fiscal quarter, posting adjusted EPS of $0.87 against a consensus estimate of $0.78, a beat of 11.60%, as its Chicken segment carried the load amid persistent weakness in Beef. Revenue rose 4.4% year-over-year to $13.65 billion, edging past the $13.61 billion estimate, though the company noted that stripping out prior-year legal contingency accruals of $343 million, underlying sales growth was a more modest 1.8%. The Chicken segment was the clear engine of the quarter, generating $523 million in adjusted operating income at a 12.2% margin, while Beef continued to drag with an adjusted operating loss of $202 million on $5.21 billion in sales, reflecting tight cattle supply conditions. Tyson also reduced total debt by $747 million in the first half and returned $445 million to shareholders year-to-date. A pending $48 million pork antitrust settlement has drawn investor attention to the company's litigation exposure. Looking ahead, Tyson narrowed its fiscal 2026 adjusted operating income guidance to $2.20 billion to $2.40 billion, with revenue expected to grow 2% to 4%.
- Chicken segment drove meaningful momentum with 12.2% adjusted operating margin and $523M adjusted operating income
- Prepared Foods delivered strong 14.0% adjusted operating margin with $352M adjusted operating income
- Sales growth of 4.4% year-over-year, or 1.8% excluding legal contingency accrual impacts
- Gross profit margin expanded to 7.0% from 4.6% in the prior year quarter
- Beef segment average prices increased 11.5% partially offsetting 13.1% volume decline
- Pork segment returned to reported profitability from a loss of $181M a year ago
“We delivered strong results in the second quarter, with our Chicken and Prepared Foods segments driving meaningful momentum. Our disciplined balance sheet management, execution and diversified, multi-protein portfolio position us to capitalize on significant growth opportunities ahead.”
Tyson Foods CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Tyson expects total company adjusted operating income of $2.2 billion to $2.4 billion. By segment: Chicken $1.9B–$2.05B; Prepared Foods $1.25B–$1.35B; Pork $250M–$300M; International $150M–$200M; Beef operating loss of ($500M)–($350M). Corporate expenses and amortization, as adjusted, expected at $950M–$975M. Revenue expected up 2%–4% vs. fiscal 2025. Capital expenditures of $0.7B–$1.0B. Net interest expense approximately $365M. Free cash flow of $1.2B–$1.8B. Adjusted effective tax rate approximately 25%. Liquidity expected to remain above $1.0B minimum target. USDA projects domestic protein production up approximately 1%, with beef down ~2%, pork up ~2%, and chicken up ~2%.
TSN YoY Financials
TSN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.