TSN earnings analysis
What we found in TSN'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
Tyson delivered $13.868 billion of fiscal Q3 revenue, essentially unchanged year over year, while GAAP diluted EPS rose to $0.52 from $0.17 and operating income increased to $362 million from $260 million. The earnings improvement was driven principally by the absence of the prior-year Beef goodwill impairment and a much narrower Beef loss, but gross margin contracted 160 basis points year over year to 6.6% as cattle, freight and other costs rose. Pork was the clearest operating bright spot, whereas Chicken, Prepared Foods and International profits declined; management continues to expect $0.7 billion to $0.9 billion of fiscal-2026 capex and sufficient liquidity.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Year-over-year EPS increased sharply
- GAAP diluted EPS increased to $0.52 from $0.17 in the prior-year quarter, and net income attributable to Tyson rose to $182 million from $61 million. EPS was lower than $0.73 in fiscal Q2 2026.
- Operating profit improved year over year
- Operating income increased $102 million year over year to $362 million, lifting operating margin to 2.6% from approximately 1.9%. This occurred despite $98 million of legal-contingency accruals and $73 million of executive-transition charges.
- Pork growth and margin expansion
- Pork sales grew $74 million year over year to $1.580 billion, while operating income rose $10 million to $60 million and margin expanded to 3.8% from 3.3%. Higher head harvested and carcass weights drove a 5.2% volume increase.
- Beef loss narrowed materially
- Beef operating loss narrowed $317 million year over year to $142 million, with margin improving to negative 2.6% from negative 8.2%. The improvement reflected the absence of the prior-year $343 million goodwill impairment and network-optimization benefits.
- Positive year-to-date cash generation
- Nine-month operating cash flow remained substantial at $1.469 billion, while capital expenditures were $556 million, implying $913 million of cash flow after capex on this year-to-date basis. Capex was lower than $691 million in the prior-year nine-month period.
- Liquidity remains ample
- Liquidity totaled $3.990 billion at June 27, including $740 million of cash and $3.250 billion of undrawn revolving and term-loan capacity. Management reported compliance with all debt covenants.
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.
- Volume contraction limits top-line growth
- Quarterly revenue was essentially flat at $13.868 billion versus $13.884 billion a year earlier, as a 2.8% volume decline offset a 3.4% increase in average price. Revenue was also down from $13.650 billion in fiscal Q2 only because Q2 had a lower base; profitability weakened sequentially.
- Input inflation compressed gross margin
- Gross profit declined $220 million to $921 million and gross margin fell to 6.6% from 8.2% a year ago and 7.1% in fiscal Q2. Cost of sales increased $204 million, including approximately $525 million of higher cattle costs and $105 million of higher freight and transportation costs.
- Beef remains loss-making amid cattle shortage
- Beef remains structurally pressured: sales fell $212 million to $5.391 billion, volume declined 15.9%, and the segment posted a $142 million operating loss. Management cites limited market-ready cattle supply and uncertainty around the timing of herd rebuilding.
- Three profitable segments saw earnings decline
- Chicken operating income fell $86 million to $389 million, Prepared Foods income fell $78 million to $312 million, and International income fell $17 million to $48 million. Respective margins declined to 9.1%, 12.2%, and 8.0%.
- Legal and restructuring costs remain elevated
- The quarter included $98 million of legal-contingency accruals, $73 million of executive leadership-transition charges, and $14 million of restructuring charges. Management also expects additional network-optimization charges beyond the $241 million total pretax net charges approved through June 27, 2026.
- No formal risk-factor update; litigation persists
- Risk factors were stated to have not changed materially from the fiscal-2025 10-K. Separately, the July 2026 Oklahoma settlement calls for an aggregate environmental-relief fund of approximately $41.7 million, including approximately $18 million from Tyson, plus approximately $1 million for an auditor fund.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.52
- Gross margin
- 6.6%
- Operating margin
- 2.6%
- Segment
- Beef revenue: $5.391 billion; segment operating loss: $142 million; operating margin: (2.6)%
- Segment
- Pork revenue: $1.580 billion; segment operating income: $60 million; operating margin: 3.8%
- Segment
- Chicken revenue: $4.255 billion; segment operating income: $389 million; operating margin: 9.1%
- Segment
- Prepared Foods revenue: $2.557 billion; segment operating income: $312 million; operating margin: 12.2%
- Segment
- International revenue: $601 million; segment operating income: $48 million; operating margin: 8.0%
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. Management expects fiscal-2026 capital expenditures of $0.7 billion to $0.9 billion and net interest expense of approximately $365 million; it states liquidity should be sufficient to operate the business.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- In Q2 2026, Tyson Foods reported revenues of $13.653 billion, up 4% from Q2 2025's $13.074 billion, driven by increased sales across all segments. The operating income significantly improved to $435 million from $100…
- 10-K · November 10, 2025
- Tyson Foods positions itself as a diversified, scale leader in protein with four reportable segments (Beef, Pork, Chicken, Prepared Foods), a vertically integrated chicken value chain and a portfolio of national brands.…
- 10-Q · February 3, 2025
- Tyson Foods reported sequentially and year-over-year improvement in profitability for the quarter ended December 28, 2024: revenue rose to $13,623 million from $13,319 million a year earlier, gross profit increased to…
- 10-Q · February 5, 2024
- Tyson reported essentially flat sales of $13,319 million in the quarter (vs. $13,260 million a year ago) but experienced material margin and earnings compression: gross profit declined to $823 million and operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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