PPC earnings analysis
What we found in PPC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Pilgrim's Pride (PPC) reported Q1 2026 results with revenue of $4.53 billion, slightly beating estimates but EPS of $0.51 fell short of projections. While revenue showed resilience with a modest increase from the prior year's first quarter, the operating margin declined significantly, reflecting increased costs and pressures on profitability.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Actual revenue reached $4.53 billion, surpassing estimates of $4.43 billion, reflecting a y/y increase from $4.46 billion in Q1 2025.
- Worsening Operating Margin
- Operating margin decreased to 3.6% from 9.1% in Q1 2025, indicating heightened cost pressures.
- Strong Cash Flow from Operations
- Generated $140.8 million in cash provided by operating activities, improving from $126.9 million a year earlier.
- Rising SG&A Costs
- SG&A expenses increased by $40.8 million or 59.3% year-over-year, driven by legal and marketing costs.
- Stable Cash Reserves
- Cash and cash equivalents stood at $542.4 million, maintaining a strong liquidity position despite profits decline.
- EBITDA and Adjusted EBITDA
- Reported EBITDA of $281.3 million with an Adjusted EBITDA of $308.1 million, highlighting ongoing operational challenges.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Higher Costs Impacting Profitability
- Increased SG&A expenses rose by 59.3%, impacting overall profitability.
- Inflationary Pressures
- Global inflation trends, especially rising energy prices, remain a significant risk to cost management.
- Commodity Pricing Volatility
- Pricing for key ingredients like corn and soybean meal is under pressure, affecting margins and operational costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.51
- Gross margin
- 12.7%
- Operating margin
- 3.6%
What they said about what is next.
No specific forward guidance was provided; profitability expectations were noted as decreased.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing PPC makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever