Tyson Foods Lowers 2026 Profit Forecast Amid Beef Losses

Tyson Foods lowered its fiscal 2026 adjusted operating income forecast to between $2.1 billion and $2.3 billion, down from its previous estimate of $2.2 billion to $2.4 billion. The company expects its beef segment to incur an adjusted operating loss of $500 million to $650 million, an increase from the prior forecast of $350 million to $500 million.

Tyson Foods attributes these losses to critical shortages in U.S. cattle supplies. Long-term droughts have reduced herd sizes to their lowest levels in 75 years, and a U.S. government ban on livestock imports from Mexico to prevent the spread of the New World screwworm has further constrained availability. While beef volumes dropped 15.9% in the third quarter ending June 27, the company's chicken segment has grown for seven consecutive quarters as consumers shift toward more affordable proteins.

The company is also undergoing a leadership transition. Director Jeff Schomburger will succeed Donnie King as chief executive officer in October.