Tyson Foods Sees Mexico Border Reopening Helping Beef Recovery—But Not This Year

Tyson Foods Inc. (NYSE: TSN ) stock traded higher Monday after the company reported mixed third-quarter results and narrowed its full-year sales outlook.

Earnings Snapshot Adjusted earnings were 99 cents per share, matching Wall Street estimates.

Revenue totaled $13.87 billion, missing the consensus estimate of $14.12 billion.

Sales were essentially flat year over year at $13.9 billion.

Excluding a $98 million legal contingency accrual recorded as a reduction to sales, revenue increased 0.6%.

Adjusted operating income rose 8% year over year to $547 million.

Adjusted operating margin expanded to 3.9% from 3.6% a year earlier.

As of June 27, Tyson had liquidity of $4.0 billion.

Operating cash flow totaled $1.5 billion during the first nine months of fiscal 2026, while free cash flow reached $913 million.

Segment Performance Beef sales declined to $5.39 billion from $5.60 billion.

A 12.1% increase in pricing was offset by a 15.9% decline in volume.

The segment posted an adjusted operating loss of $138 million, compared with a loss of $116 million a year earlier.

Pork sales increased to $1.58 billion from $1.51 billion, driven by a 5.2% increase in volume.

Adjusted operating income rose to $60 million from $50 million.

Chicken sales rose to $4.26 billion from $4.22 billion, reflecting a 2.2% increase in pricing and 1.0% volume growth.

Adjusted operating income increased to $488 million from $448 million.

Prepared Foods sales increased to $2.56 billion from $2.52 billion.

Adjusted operating income declined to $321 million from $334 million.

International sales rose to $601 million from $557 million.

Adjusted operating income increased to $48 million from $45 million.

Outlook Tyson narrowed its fiscal 2026 sales outlook to a range of $55.80 billion to $56.35 billion, compared with its prior forecast of $55.53 billion to $56.62 billion.

The updated guidance remains below the analyst consensus estimate of $56.76 billion.

The U.S.

Department of Agriculture expects total U.S. protein production, including beef, pork, chicken and turkey, to increase about 1% in fiscal 2026 from fiscal 2025 levels.

Tyson reaffirmed its expectation for fiscal 2026 adjusted operating income of $2.1 billion to $2.3 billion.

The company expects Prepared Foods adjusted operating income of $1.3 billion to $1.35 billion.

Chief Executive Officer Donnie King said the U.S. decision to resume cattle imports from Mexico is not expected to have a material impact on the company’s fiscal year ending in September 2026.

TSN Price Action: Tyson Foods shares were up 1.90% at $59.06 at the time of publication on Monday, according to Pro data.

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