Tyson Foods (TSN) Q2 2026 earnings summary

Executive summary

• Second quarter sales rose 4.4% year-over-year to $13.7 billion, driven by strong performance in Chicken and Prepared Foods segments and robust demand for protein.

• Adjusted operating income was $497 million, down 3% year-over-year, while GAAP operating income rose to $435 million, up $335 million from the prior year.

• Net income attributable to shareholders was $260 million for Q2 2026, up from $7 million in Q2 2025.

• Free cash flow for the first six months was $432 million, up $50 million year-over-year.

• Returned $445 million to shareholders year-to-date via dividends and share repurchases.

Financial highlights

• Q2 sales reached $13.7 billion, up 4.4% year-over-year; adjusted operating income was $497 million (3.6% margin); adjusted EPS was $0.87, down 5% year-over-year.

• GAAP operating margin for the quarter was 3.2%; gross profit margin was 7.0%, up from 4.6% year-over-year.

• Free cash flow for the first half was $432 million; operating cash flow was $829 million.

• Net leverage improved to 2.2x; gross debt reduced by nearly $1 billion over the past year.

• Capital expenditures for the first six months were $397 million.

Outlook and guidance

• Fiscal 2026 sales expected to increase 2% to 4% over fiscal 2025.

• Adjusted operating income guidance raised to $2.2–$2.4 billion.

• Segment guidance: Chicken $1.9–$2.05 billion, Prepared Foods $1.25–$1.35 billion, Pork $250–$300 million, International $150–$200 million, Beef loss ($500–$350 million).

• Capital expenditures projected at $0.7–$1.0 billion; free cash flow guidance at $1.2–$1.8 billion.

• Adjusted effective tax rate expected to approximate 25%.