A month has gone by since the last earnings report for Pilgrim's Pride (PPC Quick QuotePPC - Free Report) . Shares have added about 6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pilgrim's Pride due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

PPC Q2 Earnings Miss Estimates on Commodity Pricing Pressure

Pilgrim’s Pride reported second-quarter 2026 results, wherein both the top and bottom lines decreased year over year.

Pilgrim’s Pride’s Q2 Metrics in Detail

PPC posted adjusted earnings of 64 cents per share, down 62.4% year over year from $1.70 per share.

Net sales declined 2.8% year over year to $4,626.2 million from $4,757.4 million, missing the consensus estimate of $4,900 million. Lower U.S. commodity pricing weighed on results, while Just Bare retail sales growth of more than 30% offered support.

PPC’s Margin & Cost Performance

Gross profit fell 52.5% year over year to $339.8 million, down from $715.3 million, as cost of sales rose from $4,042.1 million in the prior-year period to $4,286.5 million.

Selling, general and administrative expenses increased 32.9% year over year to $265.1 million, from $199.5 million in the previous year period.

Adjusted EBITDA declined 47.6% year over year to $360 million from $686.9 million. The adjusted EBITDA margin also contracted 660 basis points year over year to 7.8% from 14.4%.

Operating income was $66 million, a year-over-year decline of 87.1% from $512.3 million.

Pilgrim’s U.S. Business Faces Pricing Pressure

U.S. sales decreased 6.1% year over year to $2,649.2 million from $2,820.4 million. Adjusted operating income dropped year over year to $150.2 million from $413.5 million, while the adjusted operating margin narrowed to 5.7% from 14.7% in the prior-year period.

Fresh volumes improved on stronger retail and foodservice demand, but commodity pricing declines hurt profitability. Jumbo cutout values declined more than 25% from the prior year. Margins improved sequentially as plant upgrades were completed and live operations improved.

U.S. Prepared Foods delivered higher sales and margins from the year-ago quarter. Just Bare retail sales increased more than 30%. Just Bare expanded its market position by gaining nearly 300 basis points of market share over the past year. Meanwhile, construction of the prepared foods facility in Walker County, GA, remained on track, and continued investments in Big Bird portioning equipment enhanced the company's value-added production capabilities.

Pilgrim’s Europe Sales Edge Higher

Europe sales rose 1.3% year over year to $1,389.7 million from $1,371.3 million. Adjusted operating income declined year over year to $69.3 million from $73.9 million, and the adjusted operating margin slipped to 5% from 5.4% in the prior-year period.

Retail volumes with key customers continued to outpace growth in the broader grocery channel. Rollover sales delivered double-digit growth, while Fridge Raiders maintained stable performance. However, margins came under pressure due to excess European pork imports into the U.K., higher costs related to the Middle East and weaker foodservice traffic.

PPC’s Mexico Volumes Grow Despite Margin Squeeze

Mexico sales increased 3.8% year over year to $587.3 million from $565.7 million. Adjusted operating income fell year over year to $16.5 million from $86.9 million, with the adjusted operating margin shrinking to 2.8% from 15.4% in the previous-year period.

Mexico volumes increased year over year, supported by improved growing conditions and more than 30% growth in Pilgrim's branded retail fresh volumes. However, margins in the live commodity business came under pressure from higher domestic chicken production, increased imports, greater egg availability and additional pork imports. Meanwhile, the ramp-up of live operations in the Southern Peninsula continued to progress as planned.

Other Financial Aspects of PPC

Pilgrim’s ended the quarter with cash and cash equivalents of $388.8 million, down from $640.2 million at the end of 2025. Long-term debt, excluding current maturities, was $2,861.4 million, while total stockholders’ equity stood at $3,763.4 million.

Cash provided by operating activities totaled $471.8 million for the first six months of 2026. Capital expenditures reached $465.2 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -33.04% due to these changes.

VGM Scores

At this time, Pilgrim's Pride has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Pilgrim's Pride has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.