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Tyson Cuts 2026 Profit Forecast and Widens Beef Loss Outlook

Rising livestock costs from multiyear herd declines forced the company to lower full-year profit guidance while USDA plans to start lifting Mexico livestock-import limits this month could offer limited supply relief.

Overview

  • Tyson disclosed Monday that it trimmed fiscal 2026 adjusted operating income guidance to $2.1 billion–$2.3 billion, narrowing its previous range and lowering full-year expectations.
  • The company now expects its beef division to post an adjusted operating loss of $500 million–$650 million, larger than the prior $350 million–$500 million forecast.
  • Beef volumes fell 15.9% in the quarter ended June 27, which combined with higher cattle costs squeezed margins and reduced total sales to $13.87 billion.
  • Tyson’s chicken business showed modest strength with a 1% rise in volumes and an 11.2% improvement in segment margin, helping offset some beef weakness.
  • The U.S. Department of Agriculture plans to begin lifting its suspension on Mexican livestock imports this month, a move that could modestly ease tight U.S. cattle supplies but leave broader herd-rebuilding and price pressures in place.