We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TSN posted Q2 sales growth of 4.4%, despite lower overall volumes, with mixed performance across segments.
Tyson Foods saw gross profit rise to $962M, while adjusted operating income dipped 3% year over year.
TSN expects FY26 revenue growth of 2-4% and raised its adjusted operating income outlook.
Tyson Foods, Inc. (TSN - Free Report) 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
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%.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Smithfield Foods, Inc. (SFD - Free Report) produces packaged meats and fresh pork in the United States and internationally. It carries a Zacks Rank #2 at present. Smithfield Foods delivered a trailing four-quarter earnings surprise of 12%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year levels.
Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently has a Zacks Rank #2. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales indicates growth of 8.1%, from the prior-year reported levels.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
Tyson Foods Q2 Earnings Beat Estimates, Sales Grow 4.4% Y/Y
Key Takeaways
Tyson Foods, Inc. (TSN - Free Report) 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%.
Image Source: Zacks Investment Research
Stocks to Consider
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Smithfield Foods, Inc. (SFD - Free Report) produces packaged meats and fresh pork in the United States and internationally. It carries a Zacks Rank #2 at present. Smithfield Foods delivered a trailing four-quarter earnings surprise of 12%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year levels.
Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently has a Zacks Rank #2. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales indicates growth of 8.1%, from the prior-year reported levels.