Tyson Foods Lowered Profit Forecast

American food company Tyson Foods has lowered its profit forecast for fiscal year 2026 as limited cattle supply and increased procurement costs continue to weigh heavily on the company's beef business.

The company now expects adjusted operating income in the range of $2.1–2.3 billion, compared to its previous forecast of $2.2–2.4 billion.

Revenue growth forecast for the year has been set at 2.5%–3.5%, which is below analysts' expectations of 4.3%.

The biggest challenge continues to be in the beef segment. Tyson now expects adjusted operating losses in this segment to reach $500–650 million, compared to its earlier forecast of $350–500 million.

In the third quarter, beef sales volume declined by 15.9%.

The number of cattle in the United States is at its lowest level in the past 75 years, a result of years of drought and rising feed costs. This has significantly increased livestock prices and squeezed profit margins for meat processing companies.

Additional pressure was created by the U.S. Department of Agriculture's decision to temporarily halt cattle imports from Mexico due to the risk of parasitic disease spread. Although partial removal of restrictions is planned for the current month, supply remains limited.

Against this backdrop, some consumers are switching to a cheaper alternative — poultry. Tyson's sales volume in the poultry segment increased by 1%, while operating margin reached 11.2%.

The company's third-quarter revenue was $13.87 billion, falling short of analysts' forecast of $14.12 billion.