Shares slide 6.8% as beef-segment loss projection widens
Tyson Foods on Thursday cut its fiscal 2026 revenue growth forecast to a range of 1.5% to 2%, down from a previous range of 2.5% to 3.5%, attributing the change to margin compression from volatile cattle prices and what the company described as one of the most severe U.S. cattle shortages in history.
“The revised outlook is primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history, as well as the expected impact of lower cattle prices on the value of live cattle inventories,” the company said Thursday.
Tyson now projects an adjusted operating loss of $625 million to $775 million in its beef segment for the fiscal year. That widens the company’s earlier guidance, which had projected a loss between $500 million and $650 million.
Tyson also reduced its adjusted operating profit guidance for its other meat segments, though it did not provide the revised ranges in Thursday’s announcement.
In August, Tyson said it was restructuring its beef network around three facilities in the central U.S. to address the cattle shortage. Chief Executive Officer Donnie King said those actions should reduce operating cost pressures in fiscal 2027.
Shares fell 6.8% to $52.00 in premarket trading on Thursday.