Tyson Foods (TSN) Q2 2026 Financial Results Summary

Release Date: May 4, 2026

Tyson Foods, Inc. reported its financial results for the second quarter of 2026, showing a significant financial performance amidst ongoing challenges in the food industry. Below is a summary of the key metrics and insights from the report:

Financial Highlights

• Sales:
  • Second Quarter 2026: $13,653 million, up 4.4% from $13,074 million in Q2 2025.
  • For the first six months of 2026: $27,966 million, up 4.8% from $26,697 million in the same period of 2025.
• Operating Income:
  • GAAP operating income for Q2 2026: $435 million, up 335% from $100 million in Q2 2025.
  • Adjusted operating income for Q2 2026: $497 million, down 3% from $515 million in Q2 2025.
• Net Income:
  • Net income attributable to Tyson for Q2 2026: $260 million, a major increase from $7 million in Q2 2025.
  • Earnings per Share (EPS) for Q2 2026: $0.73, compared to $0.02 in the prior year.
• Adjusted EPS:
  • Adjusted EPS for Q2 2026: $0.87, down 5% from $0.92 in Q2 2025.
• Margins:
  • Total Company GAAP operating margin for Q2 2026: 3.2% compared to 0.8% in Q2 2025.
  • Total Company adjusted operating margin: 3.6%, reflecting improved operational efficiency.

First Half Financial Performance

• Sales Growth:
  • Sales for the first half of 2026 increased by 4.8%, primarily driven by strong performance in Chicken and Prepared Foods segments.
• Operating Metrics:
  • GAAP operating income grew by 8% year-over-year to $737 million.
  • However, adjusted operating income fell to $1,069 million, down 9% year-over-year.
• Earnings Metrics:
  • GAAP EPS decreased by 6% to $0.97 from $1.03 in the first half of 2025.
  • Adjusted EPS dropped by 11% to $1.84 from $2.06 year-over-year.

Cash Flow and Liquidity

• Operating Cash Flow:
  • Cash provided by operating activities was $829 million, which is $17 million lower than the previous year.
• Free Cash Flow:
  • Free cash flow for the period was $432 million, an increase of 50 million from the previous year's $382 million.
• Liquidity:
  • Total liquidity stood at $3.7 billion as of March 28, 2026, confirming a robust liquidity position.

Debt and Shareholder Returns

• Tyson Foods managed to reduce total debt by $747 million during the quarter.
• The company returned $445 million to shareholders in the form of dividends and share repurchases year-to-date:
  • Quarterly dividend declared: $0.510 for Class A shares and $0.459 for Class B shares.

Market Outlook

• The USDA projects an increase in domestic protein production for 2026, with chicken production expected to rise by 2%.
• For fiscal 2026:
  • Expected revenue growth of 2% to 4% compared to 2025.
  • Anticipated segment operating income, as adjusted, for Chicken: $1.9 billion to $2.05 billion.
  • Anticipated total company adjusted operating income: $2.2 billion to $2.4 billion.

Conclusion

Tyson Foods, Inc. reported strong sales growth in Q2 2026 fueled by its focus on Chicken and Prepared Foods. While the overall operating income showed remarkable improvement, adjusted metrics indicated some challenges. The company remains committed to carefully managing its balance sheet while returning value to its shareholders.

Note: The amounts in the following tables are in millions.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

Three Months Ended March 28, 2026	Three Months Ended March 29, 2025	Six Months Ended March 28, 2026	Six Months Ended March 29, 2025
Sales: $13,653	Sales: $13,074	Sales: $27,966	Sales: $26,697
Cost of Sales: $12,691	Cost of Sales: $12,474	Cost of Sales: $26,196	Cost of Sales: $25,002
Gross Profit: $962	Gross Profit: $600	Gross Profit: $1,770	Gross Profit: $1,695
Selling, General and Administrative Expenses: $527	Selling, General and Administrative Expenses: $500	Selling, General and Administrative Expenses: $1,033	Selling, General and Administrative Expenses: $1,015
Operating Income: $435	Operating Income: $100	Operating Income: $737	Operating Income: $680

CONSOLIDATED CONDENSED BALANCE SHEETS

March 28, 2026	September 27, 2025
Current Assets: Cash and cash equivalents: $500	Current Assets: Cash and cash equivalents: $1,229
Accounts receivable, net: $2,399	Accounts receivable, net: $2,524
Inventories: $5,478	Inventories: $5,681
Other current assets: $497	Other current assets: $482

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