The company lowered fiscal 2026 guidance after soaring cattle costs added $575 million in the quarter, underscoring how tight U.S. supply is pressuring beef margins and demand.
Tyson Foods cut its annual profit outlook, saying losses in its beef business are set to widen as tight cattle supplies keep livestock costs elevated. Shares of the Springdale, Arkansas-based company fell 4.44%. A shortage of cattle in the U.S. has been driving up costs for meatpackers such as Tyson and JBS in recent years, leading to steep financial losses. Tyson said its cattle costs climbed by $575 million in the quarter from a year earlier. Higher livestock costs are pushing retail beef prices to record levels and curbing demand as consumers remain under pressure. Tyson now expects fiscal 2026 adjusted operating income of $2.1 billion to $2.3 billion, down from a prior forecast of $2.2 billion to $2.4 billion, and sees annual revenue growth of 2.5% to 3.5%, below analysts’ expectation of 4.3% and its earlier view of 2% to 4%, according to LSEG data. The beef segment is now forecast to post an adjusted operating loss of $500 million to $650 million, wider than the prior $350 million to $500 million loss estimate. Beef volumes fell 15.9% in the third quarter ended June 27, while chicken demand and margins improved as some consumers traded down to a cheaper protein. Quarterly sales were $13.87 billion versus analysts’ estimates of $14.12 billion.