Smithfield Foods Lowers 2026 Sales and Profit Forecasts

Smithfield Foods lowered its annual total sales and adjusted operating profit forecasts for fiscal 2026, citing high input costs and cautious consumer spending. The company now expects sales to remain roughly flat, a reversal of previous projections that predicted low-single-digit growth. Adjusted operating profit is now forecasted between $1.23 billion and $1.38 billion.

These adjustments follow a second-quarter performance that beat estimates, with $3.7 billion in sales and adjusted earnings of 62 cents per share for the period ending June 28. However, the company's Hog Production unit experienced an 8.2% sales decline to $772 million.

The downward revision mirrors a similar profit forecast cut by Tyson Foods, which attributed its decline to tight U.S. cattle supplies. In response to these broader domestic beef price pressures, President Donald Trump is considering executive actions to reduce producer regulations and beef import tariffs.