Tyson Foods reported quarterly results that exceeded analyst expectations, supported by increased demand for chicken products even as its beef business recorded substantial losses. The company said chicken sales rose modestly while beef volumes declined and beef prices jumped, a dynamic shaped in part by a reduced U.S. cattle herd.
Net sales for the first quarter climbed 5.1% to $14.31 billion, topping the average analyst estimate of $14.09 billion. Tyson reported adjusted earnings per share of $0.97, above the $0.94 analysts had expected.
Tyson highlighted divergent trends across its protein businesses. The chicken segment posted a 3.7% increase in sales for the quarter. By contrast, beef sales volumes dropped 7.3% while beef prices rose 17.2% as ranchers pared back cattle inventories following sustained drought conditions that depleted pastures and raised feeding costs. The U.S. Department of Agriculture said the national cattle herd had shrunk to a 75-year low as of January 1.
While higher prices can lift revenue for meatpackers, the company noted that limited cattle supplies have led to higher purchase costs for animals destined for slaughter, weighing on profitability in beef operations.
Looking ahead to fiscal 2026, Tyson said it expects sales to grow between 2% and 4% compared with the prior year. The midpoint of that range is above the 2.8% sales growth projection compiled from analysts by LSEG. The company raised its adjusted operating income outlook for its chicken, pork and prepared foods segments and lowered its projected loss for beef.
Specifically for chicken, Tyson now anticipates adjusted segment operating income of $1.65 billion to $1.90 billion in fiscal 2026, up from a prior expectation of $1.25 billion to $1.5 billion.
Separately, the company has moved to reduce labor and operations at beef facilities. In January, Tyson began mass layoffs at a major beef plant in Lexington, Nebraska, a facility that once employed about 3,200 people, as part of its plan to close that plant. The company also said it would reduce operations at a beef plant in Amarillo, Texas.
Context and implications
The quarter underscores the sensitivity of Tyson's business to commodity supplies and price swings across protein categories. Stronger chicken demand and a revised outlook for several segments helped the company surpass expectations, while the beef business continues to face pressure from constrained cattle supplies and higher procurement costs. Tyson's operational moves at beef plants highlight ongoing adjustments as the company responds to shifting market conditions.