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Tyson Foods Q1 Earnings Miss Estimates, Sales Grow 5.1% Y/Y
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Key Takeaways
TSN posted Q1 adjusted EPS of 97 cents, missing estimates and falling 15% Y/Y despite higher sales.
TSN's sales rose 5.1% to $14.3B, driven by pricing gains, while total volumes slipped 0.3% from last year.
TSN saw lower profits as gross profit, operating income and margins declined from the prior-year quarter.
Tyson Foods, Inc. (TSN - Free Report) reported solid first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and showed year-over-year growth, while the bottom line missed the same and declined from the prior year.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 97 cents per share, which missed the Zacks Consensus Estimate of $1.01. The bottom line declined 15% from the year-ago quarter’s reported figure of $1.14.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Total sales of $14,313 million rose 5.1% year over year. The top line beat the Zacks Consensus Estimate of $14,122 million. Excluding the impact of a $150 million increase in legal contingency accruals, recognized as a reduction to sales, sales rose 6.2%. Average price changes had a 6.5% positive impact on the top line, while total volumes dipped 0.3% year over year.
The gross profit in the quarter was $808 million, down from the $1,095 million reported in the year-ago period. Tyson Foods’ adjusted operating income decreased 13% to $572 million. The adjusted operating margin decreased 80 basis points year over year to 4%.
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,771 million from $5,335 million reported in the year-ago quarter. Volumes fell 7.3% and the average price jumped 17.2% in the segment.
Pork: Sales in the segment declined to $1,609 million from $1,617 million reported in the year-ago quarter. Volumes grew 1.6% and the average price increased 1.6%.
Chicken: Sales in the segment improved to $4,212 million from $4,065 million reported in the year-ago quarter. Volumes grew 3.7%, but the average price was down 0.1%.
Prepared Foods: Sales in the segment came in at $2,673 million, up from $2,473 million reported in the year-ago quarter. Volumes grew 0.2% and the average price rose 7.9%.
International/Other: Sales in the segment were $582 million compared with $584 million reported in the year-ago quarter. Volumes fell 0.8%, whereas the average sales price increased 0.5%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1,278 million, long-term debt of $7,453 million and total shareholders’ equity (including non-controlling interests) of $18,163 million. For the three months ended Dec. 27, 2025, cash provided by operating activities amounted to $942 million.
Liquidity was $4.5 billion as of Dec. 27, 2025. 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 projects and projects for maintenance and repair.
Adjusted free cash flow amounted to $690 million in the fiscal first quarter. In fiscal 2026, free cash flow is expected to be in the range of $1.1-$1.7 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 $250-$500 million in fiscal 2026, an improvement from its earlier guidance of a $400-$600 million loss.
For Pork, the USDA projects domestic production to rise nearly 2%. The company expects adjusted operating income of $250-$300 million, compared with its prior outlook of $150-$250 million and domestic production growth of nearly 3%.
For Chicken, the USDA anticipates domestic production to grow about 1% year over year. The company now expects adjusted operating income of $1,650-$1,900 million, up from its previous forecast of $1,250-$1,500 million.
For Prepared Foods, management projects adjusted operating income of $1,250-$1,350 million for fiscal 2026, significantly higher than its earlier guidance of $950-$1,050 million.
For International/Other, management projects adjusted operating income of $150-$200 million for fiscal 2026.
Total company’s 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 $2.1-$2.3 billion band.
The Zacks Rank #3 (Hold) company’s shares have gained 26.6% in the past three months compared with the industry’s growth of 14.2%.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
The Hershey Company (HSY - Free Report) engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It flaunts a Zacks Rank #1 at present. HSY delivered a trailing four-quarter earnings surprise of 15%, on average.
The Zacks Consensus Estimate for Hershey’s current fiscal-year sales implies growth of 3.6%, from the year-ago figures.
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Tyson Foods Q1 Earnings Miss Estimates, Sales Grow 5.1% Y/Y
Key Takeaways
Tyson Foods, Inc. (TSN - Free Report) reported solid first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and showed year-over-year growth, while the bottom line missed the same and declined from the prior year.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 97 cents per share, which missed the Zacks Consensus Estimate of $1.01. The bottom line declined 15% from the year-ago quarter’s reported figure of $1.14.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote
Total sales of $14,313 million rose 5.1% year over year. The top line beat the Zacks Consensus Estimate of $14,122 million. Excluding the impact of a $150 million increase in legal contingency accruals, recognized as a reduction to sales, sales rose 6.2%. Average price changes had a 6.5% positive impact on the top line, while total volumes dipped 0.3% year over year.
The gross profit in the quarter was $808 million, down from the $1,095 million reported in the year-ago period. Tyson Foods’ adjusted operating income decreased 13% to $572 million. The adjusted operating margin decreased 80 basis points year over year to 4%.
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,771 million from $5,335 million reported in the year-ago quarter. Volumes fell 7.3% and the average price jumped 17.2% in the segment.
Pork: Sales in the segment declined to $1,609 million from $1,617 million reported in the year-ago quarter. Volumes grew 1.6% and the average price increased 1.6%.
Chicken: Sales in the segment improved to $4,212 million from $4,065 million reported in the year-ago quarter. Volumes grew 3.7%, but the average price was down 0.1%.
Prepared Foods: Sales in the segment came in at $2,673 million, up from $2,473 million reported in the year-ago quarter. Volumes grew 0.2% and the average price rose 7.9%.
International/Other: Sales in the segment were $582 million compared with $584 million reported in the year-ago quarter. Volumes fell 0.8%, whereas the average sales price increased 0.5%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1,278 million, long-term debt of $7,453 million and total shareholders’ equity (including non-controlling interests) of $18,163 million. For the three months ended Dec. 27, 2025, cash provided by operating activities amounted to $942 million.
Liquidity was $4.5 billion as of Dec. 27, 2025. 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 projects and projects for maintenance and repair.
Adjusted free cash flow amounted to $690 million in the fiscal first quarter. In fiscal 2026, free cash flow is expected to be in the range of $1.1-$1.7 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 $250-$500 million in fiscal 2026, an improvement from its earlier guidance of a $400-$600 million loss.
For Pork, the USDA projects domestic production to rise nearly 2%. The company expects adjusted operating income of $250-$300 million, compared with its prior outlook of $150-$250 million and domestic production growth of nearly 3%.
For Chicken, the USDA anticipates domestic production to grow about 1% year over year. The company now expects adjusted operating income of $1,650-$1,900 million, up from its previous forecast of $1,250-$1,500 million.
For Prepared Foods, management projects adjusted operating income of $1,250-$1,350 million for fiscal 2026, significantly higher than its earlier guidance of $950-$1,050 million.
For International/Other, management projects adjusted operating income of $150-$200 million for fiscal 2026.
Total company’s 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 $2.1-$2.3 billion band.
The Zacks Rank #3 (Hold) company’s shares have gained 26.6% in the past three months compared with the industry’s growth of 14.2%.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
The Hershey Company (HSY - Free Report) engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It flaunts a Zacks Rank #1 at present. HSY delivered a trailing four-quarter earnings surprise of 15%, on average.
The Zacks Consensus Estimate for Hershey’s current fiscal-year sales implies growth of 3.6%, from the year-ago figures.