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…
Earnings analysis · 10-Q
TSN earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.52
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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%.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.