Tyson Foods, Inc. TSN reported solid second-quarter fiscal 2026 results, with the top line increasing year over year while missing the Zacks Consensus Estimate. The bottom line declined year over year but beat the consensus mark.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 87 cents per share, which beat the Zacks Consensus Estimate of 76 cents. The bottom line declined 5% from the year-ago quarter’s reported figure of 92 cents.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote
Total sales of $13,653 million rose 4.4% year over year. The top line missed the Zacks Consensus Estimate of $13,799 million. Average price changes had a 4.1% positive impact on the top line, while total volumes dipped 2.3% year over year.
The gross profit in the quarter was $962 million, up from $600 million reported in the year-ago period. Tyson Foods’ adjusted operating income decreased 3% to $497 million. The adjusted operating margin decreased 20 basis points year over year to 3.6%.
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,205 million from $5,196 million reported in the year-ago quarter. Volumes fell 13.1% and the average price jumped 11.5% in the segment.
Pork: Sales in the segment increased to $1,579 million from $1,244 million reported in the year-ago quarter. Volumes grew 4.4% and the average price increased 1.3%.
Chicken: Sales in the segment improved to $4,286 million from $4,141 million reported in the year-ago quarter. Volumes grew 1.7% and the average price was up 1.8%.
Prepared Foods: Sales in the segment came in at $2,511 million, up from $2,396 million reported in the year-ago quarter. Volumes grew 0.4% and the average price rose 4.4%.
International/Other: Sales in the segment were $577 million compared with $566 million reported in the year-ago quarter. Volumes fell 1%, whereas the average sales price increased 2.9%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $500 million, long-term debt of $7,942 million and total shareholders’ equity (including non-controlling interests) of $18,201 million. For the six months ended March 28, 2026, cash provided by operating activities amounted to $829 million.
Liquidity was $3.7 billion as of March 28, 2026. Management expects total liquidity to stay above the company’s minimum target of $1 billion in fiscal 2026.
Tyson Foods projects capital expenditures in the range of $700 million to $1 billion for fiscal 2026, involving investments in profit-improvement, and maintenance and repair projects.
Adjusted free cash flow amounted to $432 million in the first six months. In fiscal 2026, free cash flow is expected to be in the range of $1.2-$1.8 billion.
What to Expect From TSN in FY26?
For fiscal 2026, the United States Department of Agriculture (“USDA”) anticipates domestic protein production (beef, pork, chicken and turkey) to rise around 1% compared with the level of fiscal 2025.
For the Beef segment, the USDA projects domestic protein production to dip nearly 2% year over year. The company expects an adjusted operating loss of $350-$500 million in fiscal 2026, compared with its earlier guidance of a $250-$500 million loss.
For Pork, the USDA projects domestic production to rise nearly 2%. The company expects adjusted operating income of $250-$300 million.
For Chicken, the USDA anticipates domestic production to grow about 2% year over year. The company now expects adjusted operating income of $1.9-$2.05 billion, up from its previous forecast of $1.65-$1.9 billion.
For Prepared Foods, management projects adjusted operating income of $1.25-$1.35 billion for fiscal 2026.
For International/Other, management projects adjusted operating income of $150-$200 million for fiscal 2026.
The company’s total revenue growth is anticipated in the range of 2-4% in fiscal 2026 compared with the fiscal 2025 level. Adjusted operating income is envisioned in the $2.2-$2.4 billion band, compared with its earlier guidance of $2.1-$2.3 billion.
This Zacks Rank #3 (Hold) company’s shares have fell 2% in the past three months compared with the industry’s decline of 8.4%.
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