Tyson Foods lowered its fiscal 2026 adjusted operating income forecast on Monday, as losses in its beef segment worsened amid tight U.S. cattle supplies that have kept livestock costs elevated.
The Springdale, Arkansas-based company now expects full-year adjusted operating income of $2.1 billion to $2.3 billion, down from a prior forecast of $2.2 billion to $2.4 billion, the company said
For its beef segment, Tyson now projects an adjusted operating loss of $500 million to $650 million, compared with an earlier forecast of a loss of $350 million to $500 million. Tyson stock fell about 3% in premarket trading on Monday. In the third quarter ended June 27, the beef segment posted an adjusted operating loss of $138 million, compared with a loss of $116 million a year earlier.
Beef sales volumes dropped 15.9% in the quarter while prices rose 12.1%, the company said. According to Reuters, a years-long drought drove up feed costs and pushed American ranchers to pare down the national cattle herd to a size not seen in three-quarters of a century. Cattle procurement costs have climbed faster than what meatpackers can recover through higher beef prices, eroding their margins.