Tyson annual revenue tops $54.44 billion, beef segment posts big loss

Tyson Foods surprised analysts with better-than-expected results for its fourth-quarter ending Sept. 30. The meat giant reported revenue of $13.86 billion, up 2.2% from a year ago. On an adjusted basis, revenue climbed 4.8% for the period.

Tyson’s quarterly net earnings per share were 13 cents after adjustments of $355 million in costs to settle price-fixing lawsuits. The net income of $47 million represents an 86.83% decline from the same period last year. On an adjusted basis, operating income increased 19% in the quarter to $608 million. Adjusted earnings per share came in at $1.15, up 25% and better than the consensus estimate of 88 cents.

Total annual operating income topped $2.287 billion, up 26% from the prior year. Higher returns in Tyson’s chicken business helped to fuel the adjusted growth numbers. The beef and prepared foods segment weighed on the overall results.

For fiscal 2025, Tyson revenue topped $54.44 billion, up 2.1% from prior year. Excluding the impact of $653 million in legal charges, annual sales increased 3.3%. Net operating income fell 22% to $1.098 billion. After adjustments, operating income rose 26% from the prior year. Net earnings per share tumbled 41% to $1.33 before the adjustments. Non-GAAP earnings per share totaled $4.12, up 33% from a year ago.

“We delivered year-over-year growth in sales, adjusted operating income and adjusted earnings per share, reflecting the strength of our multi-protein, multi-channel portfolio,” said Donnie King, president and CEO of Tyson Foods.

Tyson executives are optimistic for 2026 growth because of historically high chicken prices and low feed costs. Beef challenges are expected to worsen in the year, but Tyson said its prepared foods business continues to grow market share in several branded categories like deli meats and frozen entrees despite more consumers chasing lower-cost private brands.

Tyson expects continued volatility in its beef segment, but said growth opportunities in its chicken segment should lift sales between 2% and 4% compared to 2025. King said Tyson chicken should be favored with consumers because of affordability compared to beef.

“We are a great place operationally with our chicken business,” King said. “Efficiency plays put into place over the past three years are now paying off. We have shifted our mix to more branded, higher value products, and we continue to grow share. We are managing our costs as well as I have ever seen in this business from top to bottom.”

SEGMENT RESULTS
Tyson Foods reported adjusted operating income of $457 million in chicken for the quarter. up 8.4% from a year ago. Chicken sales totaled $4.411 billion, down from $4.251 billion. Tyson reported volume sales fell 4.2%, but prices increased 11.6% from a year ago.

For the year, chicken revenue totaled $16.837 billion, up from $16.424 billion in 2024. Looking to 2026, Tyson expects U.S. chicken production will increase by about 1%. The company expects adjusted operating income of around $1.35 billion for the year.

Tyson’s large beef business continues to struggle with a limited supply of cattle. The segment lost $94 million in the quarter on an adjusted basis. Sales totaled $5.489 billion, up from $5.261 billion a year ago. Tyson sold 8.4% fewer pounds of beef in the quarter, but prices were up 17%. Annually, beef sales rose to $21.623 billion, up from $20.479 billion. The adjusted operating loss for the year was $426 million, and the unadjusted loss was $1.135 billion.

Tyson expects beef losses will total around $500 million in fiscal 2026. Sales are expected to decline 2% compared to 2025.

The pork business posted sales of $1.414 billion in the quarter, up from $1.438 billion a year ago. Tyson sold 4.2% fewer pounds of pork, but prices rose 11.6% from the same period in 2024. Annually, pork sales totaled $5.781 billion, down from $5.903 billion a year ago. The segment posted an adjusted operating income gain of $31 million in the quarter, up from $19 million a year ago. Tyson expects domestic production to increase 3% in fiscal 2026, and adjusted operating income to range between $150 million and $250 million.

The prepared foods business grew quarterly sales to $2.546 billion, up from $2.472 billion a year ago. While sales volume declined 1.7%, the segment was helped by price increases of 4.7% year over year. The segment posted annual sales of $9.93 billion, up from $9.851 billion in 2024. The business posted adjusted operating income of $189 million in the quarter, down from $205 million a year ago. For the year, operating income totaled $913 million, up from $905 million in 2024.

Tyson said the international segment is more efficient, with adjusted operating income of $25 million in the quarter, up from $3 million a year ago. For the year, the segment’s adjusted operating margin totaled $137 million, up from $49 million in 2024. The segment posted sales of $584 million, down from $609 million a year ago. For the year, international sales totaled $2.291 billion, down from $2.353 billion in 2024. Tyson expects similar results in 2026.

ANALYST NOTES
Tyson said it expects 2026 to look similar to 2025, with slightly better results. The company has budgeted between $700 million and $1 billion on capital expenditures for fiscal 2026, which began Oct. 1 for Tyson Foods.

Interest expense is expected to be $390 million for the year. Tyson forecasts liquidity to remain above $1 billion. The company’s total liquidity was $3.7 billion at the end of September. While Tyson expects beef losses to expand, the company still projects free cash flow between $800 million and $1.3 billion for 2026.

Analysts on the earnings call congratulated Tyson on the improved quarter and earnings beat on an adjusted basis. While they were encouraged by the results, most of them, including Pooran Sharma of Stephens Inc., have a neutral rating for the stock.

Analysts with Quad 7 Capital have a slightly more bullish opinion. They said Tyson has an upside price potential of around $60 as market dynamics shift. They note that operational improvements and cost controls are evident, with chicken and prepared foods segments showing resilience despite volatility among shifting consumer behaviors.

Tyson Foods shares (NYSE: TSN), battered for most of the year, were by mid-day trading at around $53.48, up 1.46%. Over the past 52 weeks, Tyson shares have traded between $50.56 and $65.95. Year to date, the share price is down 6.41%.