Tyson Foods IncTSN
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Tyson raised its beef loss forecast due to tight cattle supply from drought and import restrictions, hurting margins.
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Tyson Foods IncTyson Foods increased its projected adjusted beef operating loss for fiscal 2026 to a range of $500 million to $650 million, up from a prior forecast of $350 million to $500 million. The company also lowered its companywide adjusted operating income guidance to between $2.1 billion and $2.3 billion. Quarterly sales were roughly flat at $13.87 billion, missing the $14.07 billion Wall Street estimate, while adjusted earnings of $0.99 per share slightly beat expectations. Beef revenue fell 3.9% as volume dropped 16%, though prices rose about 12%, while the chicken segment provided support with a 1% volume increase and an adjusted operating margin of 11.2%. U.S. cattle availability remains near a 75-year low due to prolonged drought and restrictions on Mexican cattle imports, and meaningful financial benefits from a gradual resumption of those imports may not emerge before 2027.
Tyson Foods IncTyson raised its beef loss forecast due to tight cattle supply from drought and import restrictions, hurting margins.