Core Insights - Tyson Foods reported quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $1.01 per share, and down from $1.14 per share a year ago, representing an earnings surprise of -3.96% [1] - The company posted revenues of $14.31 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.36%, and up from $13.62 billion year-over-year [2] - Tyson shares have increased by approximately 11.5% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $13.75 billion, and for the current fiscal year, it is $3.94 on revenues of $55.74 billion [7] - The estimate revisions trend for Tyson was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Food - Meat Products industry, to which Tyson belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Beyond Meat, another company in the same industry, is expected to report a quarterly loss of $0.12 per share, with a year-over-year change of +81.5%, and revenues expected to decline by 19.2% from the previous year [9]

Q1 Fiscal 2026 Supplemental Information February 2, 2026 Forward-Looking Statements Certain information in this presentation constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2026, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt leve ...

Core Viewpoint - Tyson Foods reported better-than-expected Q1 results for FY2026, driven by significant beef price increases and strong chicken demand, highlighting persistent inflation in the U.S. protein market [1][5]. Financial Performance - Tyson Foods achieved total revenue of $14.313 billion in Q1, exceeding Wall Street expectations with a year-over-year growth of 5.1% [2]. - The beef segment revenue grew by 8.2% to $5.771 billion, with beef prices increasing by 17% year-over-year [2]. - Adjusted earnings per share were approximately $0.97, a 15% decline year-over-year but above the analyst consensus of $0.95 [2]. Business Segment Insights - The beef division recorded an adjusted operating loss of $143 million, which was weaker than analyst expectations, despite the price increase supporting sales growth [2]. - Tyson plans to close a beef plant in Nebraska and reduce operations at a Texas facility to address the challenges in the beef segment [2]. Supply Chain Dynamics - The U.S. cattle supply has been significantly reduced due to prolonged drought conditions and high feed costs, leading ranchers to sell cattle early, which impacts future production [3]. - The USDA reported that the U.S. cattle herd is at its lowest level in 75 years, contributing to higher live cattle prices as processors compete for limited supply [4]. Market Trends - Despite supply constraints, the demand for protein remains strong, with consumers increasingly turning to chicken as a more affordable protein option [4]. - Tyson's management indicated that the company is well-positioned to capitalize on the ongoing demand for protein, reflecting a stable market share [5]. Inflationary Context - The strong performance of Tyson Foods is indicative of persistent food inflation in the U.S., particularly in the beef sector, which is a significant component of the Consumer Price Index (CPI) [5]. - The combination of high beef prices, ongoing cattle shortages, and robust chicken demand suggests that food inflation may not decline smoothly, particularly for beef [5].

Market Overview - US stock index futures showed a significant narrowing of declines, with Dow futures down 0.09%, S&P 500 futures down 0.38%, and Nasdaq futures down 0.66% as of the report [1] - European indices performed positively, with Germany's DAX up 0.91%, UK's FTSE 100 up 0.64%, France's CAC 40 up 0.60%, and the Euro Stoxx 50 up 0.47% [2] - WTI crude oil fell by 4.75% to $62.11 per barrel, while Brent crude oil dropped by 4.52% to $66.19 per barrel [3] Strategic Developments - The US government is launching a strategic critical mineral reserve initiative, with President Trump allocating $12 billion to the "Treasury Project" aimed at reducing dependence on Chinese rare earths and other metals. This plan combines $1.67 billion in private capital with $10 billion in loans from the Export-Import Bank of the United States [4] Economic Focus - The upcoming week will focus on the US non-farm payroll report, with additional attention on manufacturing and service sector data, as well as the University of Michigan's consumer sentiment index. Major tech companies, including Google and Amazon, are set to report earnings [5] Commodity Volatility - Gold prices have experienced unprecedented volatility, surpassing that of Bitcoin, with Wall Street maintaining a bullish long-term outlook for gold, predicting prices could reach $6,000 by the end of 2026 [6] Currency Movements - Following the nomination of Kevin Walsh as the next Federal Reserve Chair, the dollar saw its largest increase since May, despite asset managers increasing their bearish positions on the dollar [7] Market Sentiment - Wedbush warns that under Walsh's leadership, liquidity benefits may end, leading to potential turbulence in the US stock market in the coming months [8] Company Earnings - Disney reported Q1 revenue of $26 billion, exceeding analyst expectations, driven by strong performance in its theme park business [9] - Tyson Foods posted Q1 revenue of $14.31 billion, surpassing Wall Street's forecast, aided by robust chicken demand [9] - Tesla announced the upcoming launch of its third-generation humanoid robot, aiming for a production capacity of 1 million units annually by the end of 2026 [10] - Oracle plans to raise $45 to $50 billion to expand its cloud infrastructure, targeting major clients like AMD and Meta [10] - Apple faces challenges as AI companies increasingly dominate the supply chain for critical components, impacting its profit margins [11] - Boeing is under scrutiny from the FAA, which states that the company must take further actions to regain its certification rights [12] Upcoming Economic Data - Key economic data releases include the final manufacturing PMI for January and the ISM manufacturing PMI, along with speeches from Federal Reserve officials [13][14]

Core Insights - The meat processor has exceeded both earnings and revenue estimates for its fiscal first quarter [1] Financial Performance - The company reported earnings that surpassed analyst expectations, indicating strong financial health [1] - Revenue figures also exceeded forecasts, reflecting robust demand and effective operational strategies [1]

Tyson Foods reported first-quarter earnings that slightly beat analyst estimates as higher beef pricing and continued chicken demand offset pressure from limited cattle supplies https://t.co/yZ21wgQyCu ...

Financial Performance - Sales increased by 5% or $690 million in Q1 fiscal 2026, driven by growth in Beef, Chicken, and Prepared Foods segments, while Pork and International segments saw declines [134]. - Operating income for Q1 fiscal 2026 was $302 million, down 48% compared to Q1 fiscal 2025, impacted by $115 million in restructuring charges and $155 million in legal contingency accruals [134]. - Net income attributable to Tyson was $85 million in Q1 fiscal 2026, down from $359 million in Q1 fiscal 2025, resulting in a diluted earnings per share of $0.24 compared to $1.01 [155]. - The effective tax rate for Q1 fiscal 2026 was 29.7%, up from 23.5% in Q1 fiscal 2025, influenced by state taxes and foreign withholding tax on repatriated earnings [151][152]. Segment Performance - The Beef segment reported a sales increase to $5,771 million in Q1 fiscal 2026 from $5,335 million in Q1 fiscal 2025, while the Pork segment saw a slight decline in sales [157]. - Beef segment sales increased by $436 million to $5,771 million, with a sales volume change of -7.3% and an average sales price change of +17.2% [160]. - Pork segment sales decreased by $8 million to $1,609 million, with a sales volume change of +1.6% and an average sales price change of +1.6% [162]. - Chicken segment sales increased by $147 million to $4,212 million, with a sales volume change of +3.7% and an average sales price change of -0.1% [166]. - Prepared Foods segment sales increased by $200 million to $2,673 million, with a sales volume change of +0.2% and an average sales price change of +7.9% [167]. Cost and Expenses - Cost of sales increased by $977 million, with higher input costs per pound contributing approximately $1,017 million, including $850 million in cattle costs for the Beef segment [145]. - Selling, general and administrative expenses decreased to $506 million in Q1 fiscal 2026 from $515 million in Q1 fiscal 2025, representing 3.5% of sales [146]. - Corporate expenses decreased by $13 million to $188 million, while amortization decreased by $10 million to $54 million [174]. Cash Flow and Liquidity - Cash provided by operating activities was $942 million, a decrease of $89 million compared to the prior year [178]. - Total liquidity at December 27, 2025, was $4,528 million, including cash and cash equivalents of $1,278 million [181]. - The company had current debt of $909 million, which it intends to pay with existing cash and cash generated from operating activities [183]. - The revolving credit facility has a committed capacity of $2.5 billion, providing additional liquidity for working capital needs [184]. - The company entered into a $750 million revolving term loan credit facility, maturing in December 2028, with no borrowings under this facility during the three months ended December 27, 2025 [189]. Debt and Interest Rates - The company expects net interest expense to approximate $370 million for fiscal 2026 [189]. - As of December 27, 2025, $654 million of cash was held in international accounts of foreign subsidiaries, which are not relied upon for domestic liquidity needs [189]. - A hypothetical 10% increase in interest rates would increase annualized interest expense by less than $1 million, with variable rate debt of $44 million at a weighted average interest rate of 4.8% [205]. - The company had fixed-rate debt of $8,318 million with a weighted average interest rate of 4.8% [206]. - A hypothetical 10% decrease in interest rates would have increased the fair value of fixed-rate debt by approximately $227 million at December 27, 2025, and $231 million at September 27, 2025 [206]. Risk Management - The company assesses goodwill and indefinite life assets for impairment annually, with one international reporting unit having goodwill of $0.2 billion considered at heightened risk of impairment [196]. - The fair value of livestock and grain positions is sensitive to market price changes, with a 10% change in fair value resulting in potential impacts of $37 million for live cattle and $36 million for corn as of December 27, 2025 [204]. - The company utilizes derivative financial instruments to manage commodity price risks, with significant price fluctuations potentially impacting results of operations [203]. - The company is exposed to interest rate risk related to pension and post-retirement benefit obligations, which could increase cash contribution requirements if plan asset values decline [207]. - The primary foreign currencies the company is exposed to include the Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, European euro, Malaysian ringgit, Mexican peso, and Thai baht [208]. - A hypothetical 10% change in foreign exchange rates would have impacted pretax income by $14 million at December 27, 2025, and $21 million at September 27, 2025 [208]. Compliance and Governance - The company maintains compliance with all debt covenants as of December 27, 2025, and expects to continue doing so [193]. - Detailed discussions on concentration of credit risks are available in the company's Annual Report filed on Form 10-K for the fiscal year ended September 27, 2025 [209].

Core Insights - Tyson Foods reported larger-than-expected quarterly earnings driven by strong demand for chicken products, despite significant losses in its beef business [1][3] - The U.S. cattle herd has reached a 75-year low, impacting beef supply and prices, while shifting demand towards more affordable chicken options [2] Financial Performance - Tyson's net sales increased by 5.1% to $14.31 billion in the first quarter, surpassing analyst expectations of $14.09 billion [3] - Adjusted earnings per share were reported at 97 cents, exceeding the forecast of 94 cents [3] Sales and Segment Performance - Chicken unit sales rose by 3.7% for the quarter, while beef sales volumes declined by 7.3% as beef prices surged by 17.2% [2] - The company anticipates a sales increase of 2% to 4% in fiscal 2026, with the midpoint exceeding analysts' estimates of 2.8% [3] Outlook and Adjustments - Tyson raised its adjusted income outlook for chicken, pork, and prepared foods for fiscal 2026, while reducing the projected loss for beef [4] - The company expects chicken segment operating income to range from $1.65 billion to $1.90 billion on an adjusted basis for fiscal 2026, an increase from the previous expectation of $1.25 billion to $1.5 billion [4] Operational Changes - Tyson initiated mass layoffs in January at a major beef plant in Lexington, Nebraska, which previously employed around 3,200 people, and plans to reduce operations at a beef plant in Amarillo, Texas [5]

Financial Performance - Sales for Q1 2026 were $14,313 million, a 5.1% increase from $13,623 million in Q1 2025[1] - GAAP operating income decreased by 48% to $302 million, while adjusted operating income fell by 13% to $572 million[4] - Net income per share attributable to Tyson was $0.24, down 76% from $1.01 in the prior year[4] - Net income for the three months ended December 27, 2025, was $90 million, down 75.5% from $366 million for the same period in 2024[26] - EBITDA for the three months ended December 27, 2025, was $591 million, compared to $918 million for the same period in 2024, reflecting a decline of approximately 35.5%[39] - Total adjusted EBITDA for the twelve months ended December 27, 2025, was $3.632 billion, up from $3.550 billion in the previous year[39] Liquidity and Capital Expenditures - Total liquidity as of December 27, 2025, was $4.5 billion, with a minimum liquidity target of $1.0 billion[4][18] - The company expects capital expenditures of $0.7 billion to $1.0 billion in fiscal 2026[16] - Cash provided by operating activities was $942 million, a decrease of 8.6% compared to $1,031 million in the prior year[26] - Cash and cash equivalents at the end of the period were $1,278 million, down from $2,292 million, a decline of 44.3%[26] - Free cash flow for the three months ended December 27, 2025, was $690 million, down from $760 million for the same period in 2024[41] - Free cash flow is anticipated to be between $1.1 billion and $1.7 billion for fiscal 2026[19] Debt and Equity - Total assets decreased to $36,019 million from $36,658 million, a decline of 1.75%[24] - Total current liabilities decreased to $6,203 million from $6,389 million, a reduction of 2.9%[24] - Long-term debt decreased to $7,453 million from $7,921 million, a decline of 5.9%[24] - Total gross debt as of December 27, 2025, was $8.830 billion, an increase from $8.362 billion in the previous year[39] - Total shareholders' equity decreased to $18,163 million from $18,227 million, a decline of 0.35%[24] - Net debt/Adjusted EBITDA ratio improved to 2.1x for the twelve months ended December 27, 2025, compared to 2.0x in the previous year[39] Future Outlook - The company anticipates total adjusted operating income of $2.1 billion to $2.3 billion for fiscal 2026[14] - Sales are expected to grow by 2% to 4% in fiscal 2026 compared to fiscal 2025[15] - Segment operating income for Chicken is projected to be between $1.65 billion and $1.90 billion in fiscal 2026[10] - The effective tax rate is expected to approximate 25% in fiscal 2026[20] - The company plans to continue optimizing operations and exploring acquisition opportunities to enhance growth[44] - Forward-looking statements indicate potential impacts from global pandemics, commodity price fluctuations, and changes in consumer preferences[44] Cash Flow Activities - Cash used for investing activities was $183 million, a decrease from $233 million in the previous year, reflecting a reduction of 21.5%[26] - Cash used for financing activities increased to $718 million from $195 million, an increase of 268.2%[26] - Cash provided by operating activities for the three months ended December 27, 2025, was $942 million, compared to $1.031 billion for the same period in 2024[41] Workforce - The company had approximately 133,000 team members as of September 27, 2025[42]

Core Insights - Tyson Foods, Inc. reported a sales increase of 5.1% year-over-year, reaching $14,313 million in the first quarter of fiscal 2026, despite a $150 million increase in legal contingency accruals impacting sales [5][6] - The company experienced a significant decline in operating income, with GAAP operating income down 48% to $302 million and adjusted operating income down 13% to $572 million compared to the previous year [5][6] - Net income per share attributable to Tyson decreased by 76% to $0.24, while adjusted net income per share fell 15% to $0.97 [5][6] Financial Performance - Sales for the first quarter of fiscal 2026 were $14,313 million, compared to $13,623 million in fiscal 2025, marking a 5.1% increase [5][6] - GAAP operating income was $302 million, down from $580 million in the prior year, resulting in a GAAP operating margin of 2.1% [5][6] - Adjusted operating income was $572 million, down from $659 million, with an adjusted operating margin of 4.0% [5][6] Segment Performance - Beef segment sales decreased by 7.3% to $5,771 million, while the average price increased by 17.2% [4][6] - Pork segment sales were $1,609 million, up 1.6%, with both volume and average price increasing by 1.6% [4][6] - Chicken segment sales rose by 3.7% to $4,212 million, with a slight decrease in average price by 0.1% [4][6] - Prepared Foods segment sales increased by 0.2% to $2,673 million, with an average price increase of 7.9% [4][6] Outlook for Fiscal 2026 - The USDA projects a 1% increase in domestic protein production for fiscal 2026 compared to fiscal 2025 [11] - Tyson anticipates total company adjusted operating income between $2.1 billion and $2.3 billion for fiscal 2026 [18] - Sales are expected to grow by 2% to 4% in fiscal 2026 compared to fiscal 2025 [19] - Capital expenditures are projected to be between $0.7 billion and $1.0 billion, focusing on profit improvement and maintenance projects [20] Liquidity and Cash Flow - As of December 27, 2025, the company reported liquidity of $4.5 billion, expected to remain above the minimum target of $1.0 billion [22] - Free cash flow is anticipated to be between $1.1 billion and $1.7 billion for fiscal 2026 [23]