Tyson Foods Inc. reduced its fiscal 2026 adjusted operating income forecast for the second time in a month, citing persistent margin pressure in the beef segment amid volatile cattle prices.
The company now expects adjusted operating income of $1.85 billion to $2.05 billion, down from a prior range of $2.1 billion to $2.3 billion issued on Aug. 3. Revenue growth for the year is projected at 1.5% to 2.0%, compared with the previous 2.5% to 3.5% range.
Tyson said the revisions reflect "significant margin compression amid cattle price volatility," as beef prices reached record levels this year due to a severe cattle supply shortage driven by drought and wildfires. The company also announced in August that it would close or sell three beef slaughtering, processing, and packaging facilities in response to persistent livestock shortages.
Shares of Tyson fell about 8% in early trading on the day of the announcement. The company did not provide an updated outlook for its poultry segment, which includes brands such as Tyson brand chicken nuggets.
The U.S. beef market has faced sustained pressure from tight cattle supplies, prompting the Trump administration to sign a proclamation last week temporarily increasing imports of lean beef trimmings under a lower tariff rate. The move aims to alleviate domestic supply constraints while beef prices remain elevated.
