Tyson Slashes Profit Outlook as Beef Losses Deepen to $650M
TSN sits 17% above its 52-week low of $50.56.
Summary
Tyson lowered its fiscal 2026 adjusted operating income forecast to $2.1B-$2.3B from $2.2B-$2.4B, driven by a worsening beef segment where losses are now expected to reach $500M-$650M, up from a prior $300M-$500M estimate. 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 company is leaning on its chicken business, which is more insulated from industry oversupply due to its focus on branded retail products. The USDA's plan to lift the Mexican cattle import ban offers long-term relief, but executives say benefits won't materialize for about a year. This follows a series of supply-chain warnings and leadership changes, including a new CEO set for October. The stock rose 3% midday, possibly on the EPS beat, but the guidance cut and beef deterioration are material negatives.
At the time of this announcement, TSN was trading at $59.33 on NYSE in the Trade & Services sector, with a market capitalization of approximately $20.5B. 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: Dow Jones Newswires.