Quarterly Results
Profitability:
- GAAP operating income: $302 million, down 48% from prior year.
- Adjusted operating income: $572 million, down 13%.
- GAAP EPS: $0.24, a 76% decline.
- Adjusted EPS: $0.97, down 15%.
- Total GAAP operating margin: 2.1%.
- Adjusted operating margin: 4.0%.
Liquidity remained robust at $4.5 billion, while operating cash flow was $942 million and free cash flow $690 million, both lower year-over-year. Tyson reduced its total debt by $468 million in the quarter.
Segment Performance
Chicken: Sales of $4.21 billion, volume up 3.7%, modest price change, with adjusted operating income of $459 million.
Prepared Foods: Sales up and contributed positively to both top and bottom lines.
Beef: Sales grew to $5.77 billion driven by a 17.2% price increase, but volumes fell 7.3%, resulting in a $143 million adjusted operating loss.
Pork & International: Mixed results with modest growth in pork income.
Full-Year Context & Guidance
Tyson reiterated fiscal 2026 guidance targeting 2%–4% sales growth and adjusted operating income of $2.1 billion to $2.3 billion. Beef faces continued pressure with projected full-year segment losses, while chicken and prepared foods remain key profit drivers.
Analyst Activity
Analysts reported no major upgrades or price-target changes. Adjusted EPS met consensus estimates as expected.
Year-Over-Year Trend
The results mark sequential moderation in profit growth compared with fiscal Q1 2025, where adjusted EPS and operating income had risen sharply year-over-year from a lower base. Financials primarily reflect a diversified protein portfolio offset by cost pressures in beef, keeping overall performance mixed but broadly in line with company guidance.