Smithfield Foods reported record first-half operating and adjusted operating profit for fiscal 2026 and beat analysts' second-quarter sales and earnings estimates, even as it trimmed its full-year outlook to reflect a tougher consumer and cost environment. For the quarter ended June 28, 2026, net sales fell 2.3% year over year to $3.7 billion, slightly above analysts' estimate of $3.68 billion, while adjusted diluted earnings per share came in at 62 cents, ahead of expectations for 60 cents. Operating profit rose 11.6% to $290 million and adjusted operating profit reached a record $300 million for a fiscal second quarter. Net income attributable to Smithfield increased 26.6% to $238 million, with diluted earnings per share of $0.60. For the first six months, sales edged down 0.8% to $7.5 billion, while operating profit climbed 7.1% to $623 million and adjusted operating profit rose 2.3% to a record $638 million. The company said lower sales largely reflected non-recurring sales to its Hog Production joint ventures in 2025, while margins improved at the consolidated level. Smithfield now expects fiscal 2026 sales to be roughly flat, versus prior expectations for low-single-digit percentage growth, and adjusted operating profit of $1.23 billion to $1.38 billion, down from its earlier forecast of $1.33 billion to $1.48 billion. Sales in its Hog Production unit fell 8.2% to $772 million in the quarter. The outlook cut comes as shoppers remain budget-conscious and trade down to smaller packs or cheaper products, while higher livestock and other input costs continue to weigh on the meat industry. Peer Tyson Foods also lowered its annual profit forecast last week, citing widening beef losses tied to tight U.S. cattle supplies. Smithfield shares were down 3% in premarket trading.