Tyson Foods cut its fiscal 2026 profit forecast on Thursday for the second time in roughly a month, as worsening losses in its beef segment continued to weigh on the company.
The Springdale, Arkansas-based meatpacker now expects full-year adjusted operating income of $1.85 billion to $2.05 billion, down from the $2.1 billion to $2.3 billion it forecast on August 3. Revenue growth guidance was also trimmed, to a range of 1.5% to 2.0% for the fiscal year, pulling back from the 2.5% to 3.5% range the company had projected previously.
The beef segment's expected adjusted operating loss for the fiscal year widened to a range of $625 million to $775 million. "The revised outlook is primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history," Tyson said, adding that lower cattle prices also reduced the value of live cattle inventories the company had already purchased.
President Donald Trump signed a proclamation last week intended to increase U.S. imports of ground beef, a move that drove down domestic cattle prices, according to Reuters . In July, lean and extra lean ground beef averaged $8.41 per pound, a figure more than 38% higher than it was five years earlier.
"The beef pressures that have intensified this quarter reflect industry-wide cattle-cycle dynamics that required decisive action," CEO Donnie King said in a statement.
Tyson also noted that pullback in consumer spending on discretionary items has weighed on demand at foodservice outlets.
Tyson's Chicken and Prepared Foods segments provided some offset. The company raised its chicken segment adjusted operating income outlook to $1.85 billion to $1.95 billion for the fiscal year, while maintaining its previous guidance for Prepared Foods and International segments.
Tyson has been restructuring its beef operations throughout the year. The company announced plans in August to close its Joslin, Illinois, beef processing plant and its Eagle Mountain, Utah, case-ready facility, and to pursue the sale of its Pasco, Washington, beef plant — consolidating its beef business around three facilities in the central United States. Those closures followed the earlier shutdown of a large beef plant in Lexington, Nebraska, and a cutback at a facility in Amarillo, Texas. Together, the moves represent Tyson stepping away from roughly a third of its former beef-processing capacity.
King said the restructuring actions should begin reducing operating cost pressures as Tyson enters fiscal year 2027. Incoming CEO Jeff Schomburger and Chief Financial Officer Curt Calaway are scheduled to speak at the Barclays Global Consumer Conference in Boston on September 10, the company said.
