For its second fiscal quarter, Tyson Foods reported adjusted earnings of 87 cents per share, outpacing the average analyst estimate of 78 cents, Reuters reported. Tyson stock was up about 2% in premarket trading.
At $13.65 billion, quarterly revenue was up 4.4% and came in just above the $13.61 billion analysts had anticipated, the company said.
Chicken drove the outperformance. On the chicken side, volumes grew 1.7% during the quarter and the segment's adjusted operating margin reached 12.2%. Tyson raised its fiscal 2026 chicken income forecast to $1.9 billion to $2.05 billion, up from a prior projection of $1.65 billion to $1.9 billion.
The beef business continued to deteriorate. Pricing in the beef segment jumped 11.5% even as sales volumes contracted by 13.1%. The division's adjusted operating loss deepened to $202 million from $113 million in the prior-year quarter. The updated full-year guidance now calls for a beef operating loss between $350 million and $500 million, steeper on the low end than the $250 million to $500 million range the company had previously projected.
An extended stretch of drought has thinned the domestic cattle herd, according to Reuters, driving beef prices to record levels and eroding processor margins because the surge in livestock costs has outrun what higher selling prices can recover. Consumers have responded by shifting toward more affordable proteins such as chicken and pork.
