Tyson Foods reduced its annual profit forecast due to widening losses in its beef segment amid tight cattle supplies and elevated costs.
Tyson Foods slashed its fiscal 2026 adjusted operating income forecast to $2.1 billion to $2.3 billion from $2.2 billion to $2.4 billion. The revision reflects deeper losses in its beef business, now expected to range from $500 million to $650 million, up from a prior $350 million to $500 million loss estimate.
Cattle inventories have fallen to 75-year lows after prolonged drought and high feed costs forced U.S. ranchers to reduce herd sizes. Beef prices surged, squeezing margins for meatpackers and dampening consumer demand amid inflation. Tyson’s beef volumes dropped 15.9% in the third quarter ended June 27.
The company also trimmed its revenue growth outlook to 2.5% to 3.5%, below analysts’ expectations of 4.3%. Supplies remain constrained after the USDA suspended livestock imports from Mexico over disease concerns, further tightening the market.