Tyson Foods Misses Sales Estimates. Why the Stock Is Rising Anyway.

Tyson Foods said it expects chicken volumes to rise in fiscal 2026, driving adjusted operating income in the range of $1.25 billion to $1.5 billion. (Photograph by Daniel Acker/Bloomberg)

Key Points

• Tyson Foods reports adjusted earnings of $1.15 a share, exceeding analysts’ forecasts of 84 cents.
• Tyson’s chicken sales increase to $4.411 billion, with volumes up 3.7%, despite overall volume declines.
• Tyson projects fiscal 2026 sales growth between 2% and 4%, with operating income of $2.1 billion to $2.3 billion.

Tyson Foods , the largest meat supplier in the U.S., posted mixed results in its fiscal fourth quarter quarter but one bright spot caught Wall Street’s attention.

Tyson reported adjusted earnings of $1.15 a share, handily beating the 84 cents analysts had forecast, according to FactSet. While sales grew 2.2% to $13.86 billion, they missed the $14.11 billion Wall Street had expected.

While volumes fell across beef, pork, and prepared foods, one category bucked the trend. Chicken sales rose to $4.411 billion from $4.251 billion last year as volumes increased by 3.7% and prices mostly remained flat.

J.P. Morgan analysts noted Monday that record-high results in the chicken business drove much of Tyson’s strength in the quarter, writing that it was “probably the main positive surprise today.”

Shares rose 4.4% in premarket trading Monday. Futures tracking the benchmark S&P 500 index were up 1%.

The meat supplier guided for higher sales in fiscal 2026, saying it expects them to grow between 2% and 4%. Analysts polled by FactSet have been looking for sales of $56.21 billion, or a roughly 3% increase from last year.

Tyson also expects operating income in the range of $2.1 billion to $2.3 billion, versus Wall Street’s call for $2.1 billion.

The company noted that domestic production of pork and beef was set to fall 3% and 2%, respectively, in fiscal 2026, citing data from the Department of Agriculture. Tyson expects to post an adjusted operating loss between $400 million and $600 million in fiscal 2026 within its beef business.

Chicken production, meanwhile, is expected to increase 1%. The company sees adjusted operating income of $1.25 billion to $1.5 billion in 2026.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com