Tyson Foods quarterly net income dips 3.5%, revenue up more than 4%

Springdale-based Tyson Foods posted second-quarter earnings of an adjusted 87 cents per share, above the consensus estimate of 79 cents. The per share earnings were 5% less than 92 cents per share earned a year ago.

Net income totaled $497 million, down 3.5% compared with the $515 million reported a year ago, according to the second-quarter report posted early Monday (May 4). Revenue grew 4.4% from a year ago to $13.653 billion.

Tyson CEO Donnie King said the company’s chicken and prepared foods segments provided meaningful momentum in the quarter ended March 28.

“Our disciplined balance sheet management, execution and diversified multi-protein portfolio position us to capitalize on significant growth opportunities ahead,” King said. “We remain focused on continuous improvement, leveraging our scale and operational capabilities to better serve our customers and consumers.”

For the first half of fiscal 2026, Tyson reported revenue of $10.976 billion, up 4.4% from a year ago. Adjusted net income totaled $1.069 billion, down 8.9% from the prior year.

Chicken was the shining star in the quarter with sales totaling $4.286 billion, up 1.7% from a year ago. The segment posted adjusted operating income of $523 million, up 27.2% from a year ago.

It was the sixth consecutive quarter of year-over-year volume and sales gains in chicken. The company said retail demand is strong for chicken products, with volume sales up 1.2% for its fresh chicken and 6.5% for its higher value-added chicken products that are trimmed, deboned, marinated, or pre-cooked. The company expects it will earn between $1.9 billion and $2.05 billion in chicken segment operating income in the full fiscal year.

The prepared foods segment had quarterly revenue of $2.511 billion, up 4.6% from a year ago. The segment benefited from sales prices up 4.4% year over year. The adjusted operating income totaled $352 million, up 6.9% year over year. The biggest gains were seen in the Hillshire Farms combo snacking products, up 24.2% from a year ago. Tyson said it expects the prepared foods segment to return operating income between $1.25 billion and $1.35 billion for the year.

Tyson’s beef segment reported deeper than expected adjusted operating losses of $202 million, more than the $113 million loss posted a year ago. The unadjusted losses in beef for the first half of the year total $559 million, 125% more than a year ago in part because of restructuring charges related to the closure of the Lexington, Neb., beef plant. Tyson expects beef production to be down 2% for the fiscal year, in part because of the tight cattle supplies, which have sent prices higher and hurt processing margins.

Tyson’s pork segment also reported weaker-than-expected results in the quarter. Sales were 26% higher at $1.579 billion from a year ago, behind 4.4% higher volume sales. Prices inched up 1.3% from a year ago. The segment’s adjusted operating income was $41 million, down 40% from a year ago. Tyson said it expects pork production to increase 2%, and it plans to return adjusted operating income between $250 million and $300 million for the year.

Tyson’s international business reported sales of $577 million, up 1.9% from a year ago. Adjusted operating income totaled $37 million, down from $54 million a year ago. The company expects its international business to post adjusted operating income between $150 million and $200 million for the year.

Shares of Tyson Foods (NYSE: TSN) traded higher on the earnings beat. At midday, the stock was trading at $65.42, up 2.7% on the day. For the past 52 weeks, the shares have traded between $50.56 and $66.41. Year-to-date, the share price is up 12.7%.