Tyson Foods NYSE:TSN, a major U.S. producer of beef, chicken, pork and prepared foods, rose approximately 2.5% in Monday's trading after initially declining as investors assessed stronger chicken results against deeper expected beef losses. Tyson now anticipates an adjusted beef operating loss between $500 million and $650 million during fiscal 2026. Its previous forecast called for a loss between $350 million and $500 million.
Quarterly sales remained approximately unchanged at $13.87 billion, below Wall Street's $14.07 billion expectation, while adjusted earnings reached $0.99 per share and slightly exceeded estimates. Beef revenue declined 3.9% as sales volume fell 16% and prices increased approximately 12%. Tyson reduced its companywide adjusted-operating-income forecast to between $2.1 billion and $2.3 billion. However, chicken volume increased 1%, while the segment's adjusted operating margin reached 11.2%, providing financial support against worsening beef conditions.
The midpoint of Tyson's projected beef loss increased from $425 million to $575 million, representing an additional $150 million of anticipated pressure. U.S. cattle availability remains near a 75-year low following prolonged drought and restrictions on Mexican cattle imports intended to prevent the spread of the New World screwworm. Although those imports are expected to resume gradually, Reuters reported that meaningful financial benefits may not emerge before 2027. Investors may now assess whether chicken and prepared-food profitability can continue absorbing elevated cattle costs and weaker beef volumes.