Tyson Foods Cuts Profit Forecast Due to Beef Segment Struggles
Tyson Foods (TSN) has revised its fiscal 2026 profit forecast downward for the second time in a month, citing severe cattle shortages and volatile prices impacting its beef business. The company now expects adjusted operating income between $1.85 billion to $2.05 billion — down from earlier projections of $2.1 billion to $2.3 billion — with revenue growth expectations also reduced. Tyson anticipates an adjusted operating loss in the beef segment ranging from $625 million to $775 million, driven by margin compression and inventory valuation challenges. Despite these headwinds, Tyson's Chicken and Prepared Foods segments remain strong performers, offering some offset for losses in beef. The company is restructuring its beef operations around three key facilities while exiting less efficient locations, aiming to reduce costs over time. Management also highlighted the potential for long-term margin improvement if cattle supplies normalize. However, concerns persist about how long the current downturn may last. Tyson described the cattle shortage as one of the most severe in U.S. history and warned that continued tight supply could delay a recovery.
Tickers: $TSN
Topics: beef industry cattle prices profit guidance restructuring