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3mo ago

Tyson Lifts Profit Outlook After Q2 Beat as Chicken Outperforms and Beef Slumps

Poultry strength prompted a higher profit target despite beef losses tied to scarce cattle.

An employee at a Tyson Foods meatpacking plant wears a jacket with the company logo at a job fair organized by the Nebraska Department of Labor in Lexington, Nebraska, U.S. January 15, 2026. REUTERS/Carlos Barria/File Photo
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Overview

  • Tyson, which reported results Monday, posted adjusted EPS of $0.87 on about $13.65–$13.7 billion in sales and raised full‑year adjusted operating income guidance to $2.2–$2.4 billion.
  • The company lifted its chicken profit outlook to $1.9–$2.05 billion after the segment earned $523 million with a 12.2% margin in the quarter, and Prepared Foods contributed $352 million.
  • Beef remained a drag with a $202 million adjusted operating loss and a 13.1% drop in volume, and Tyson now expects a fiscal‑year beef loss of $350–$500 million as tight cattle supplies push prices up 11.5%.
  • Management is right‑sizing beef capacity to match lower cattle availability, closing its Lexington, Nebraska plant and scaling back operations in Amarillo, Texas.
  • Tyson improved its finances with about $3.7 billion in liquidity, first‑half free cash flow of $432 million, and roughly $747 million less gross debt year over year.