Tyson Foods has reported first quarter fiscal 2026 results showing higher sales and continued volume growth in chicken and prepared foods, despite margin pressure across parts of the protein portfolio.
The US-based protein supplier posted quarterly sales of $14.31 billion, up 5.1% year-on-year, supported by volume gains and improved execution across key retail-facing categories.
Adjusted operating income reached $572 million, while adjusted earnings per share came in at $0.97. Liquidity remained strong at $4.5 billion, and the group reduced total debt by $468 million during the quarter.
Tyson said its prepared foods division delivered both top-line and profit growth, while the chicken business recorded its fifth consecutive quarter of year-on-year volume gains. The company described protein demand as resilient, with ongoing market share gains across multiple categories.
Protein Outlook Points To Chicken Growth And Beef Pressure
For the full 2026 fiscal year, Tyson expects continued category divergence across its protein portfolio.
Based on current US Department of Agriculture forecasts and internal planning:
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Chicken production is expected to rise by around 1%, with Tyson projecting adjusted operating income of $1.65 billion to $1.9 billion for the segment.
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Prepared foods is forecast to deliver adjusted operating income of $1.25 billion to $1.35 billion, reflecting strong branded retail demand.
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Pork production is expected to increase by approximately 2%, with projected segment operating income of $250 million to $300 million.
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Beef production is forecast to decline by roughly 2%, with Tyson anticipating an adjusted operating loss of $250 million to $500 million for the segment in fiscal 2026.
At group level, Tyson is targeting total adjusted operating income of $2.1 billion to $2.3 billion and revenue growth of 2% to 4% for the full year.
Capital expenditure is planned at $700 million to $1 billion, focused on maintenance, efficiency upgrades, and profit improvement projects across its processing network.
Retail Supply Implications
The continued expansion of Tyson’s chicken volumes and prepared foods output signals stable supply availability for US grocery retailers across chilled, frozen and ready-meal categories.
At the same time, the projected decline in domestic beef production is likely to keep cost pressure and pricing volatility elevated in the red meat category, which remains sensitive to herd availability and feed costs.
Why It Matters
Tyson is one of the largest protein suppliers to North American supermarkets. Its volume trends directly influence shelf availability, private label sourcing capacity, and category pricing dynamics.
Stronger chicken and prepared foods performance supports retailers’ growing focus on value-added protein and convenience-led ranges. Meanwhile, the weaker beef outlook reinforces the structural supply constraints facing the category going into 2026.
For supermarket buyers and category managers, Tyson’s outlook provides early signals on where supply stability is improving and where tighter conditions may persist.
