Tyson Slashes Profit Outlook as Beef Losses Deepen on Tight Cattle Supply
TSN is trading near its 52-week low of $50.56 (11% above the low).
Summary
Tyson cut its fiscal 2026 adjusted operating income forecast to $2.1B-$2.3B from $2.2B-$2.4B, with beef segment losses now seen at $500M-$650M, up from $350M-$500M. Revenue growth guidance was trimmed to 2.5%-3.5%, below the 4.3% analyst consensus, and the company narrowed its FY26 sales growth outlook range. Q3 sales of $13.87B missed estimates, and beef volumes plunged 15.9% as the smallest U.S. cattle herd in 75 years and a Mexican livestock import ban squeeze supply. Chicken provided a partial offset with 1% volume growth and an 11.2% margin expansion. This follows CFO Calaway's May warning of 'spotty' herd rebuilding and the June screwworm-related border closure. The magnitude of the beef loss revision and the revenue miss signal worsening conditions beyond prior expectations.
Updates
· Dow Jones Newswires — Cattle costs surged $575 million in the quarter, pushing the beef division to a $142 million loss despite a 12% price increase, as volumes dropped 16%. The stock rose 3% midday.
At the time of this announcement, TSN was trading at $55.91 on NYSE in the Trade & Services sector, with a market capitalization of approximately $20B. The 52-week trading range was $50.56 to $69.48. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.