Tyson Foods' Q4 Earnings Top Estimates, Sales Grow on Pricing

Tyson Foods, Inc. (TSN) reported solid fourth-quarter fiscal 2025 results, wherein earnings and sales increased year over year, and the bottom line beat the Zacks Consensus Estimate. Results underscore the resilience of the company’s diversified multi-protein, multi-channel portfolio, alongside its focus on operational excellence and ability to adapt to the evolving needs of customers and consumers.

TSN’s Quarterly Performance: Key Insights

Tyson Foods posted adjusted earnings of $1.15 per share, which topped the Zacks Consensus Estimate of 85 cents. The bottom line jumped 25% from the year-ago quarter’s reported figure of 87 cents.

Total sales of $13,860 million rose 2.2% year over year. The top line fell short of the Zacks Consensus Estimate of $13,908 million. Average price changes had a 6.4% positive impact on the top line, while total volumes dipped 1.6% year over year.

The gross profit in the quarter was $726 million, down from the $1,060 million reported in the year-ago period. Tyson Foods’ adjusted operating income surged 19% to $608 million. The adjusted operating margin expanded 50 basis points year over year to 4.3%.

Decoding TSN’s Segmental Details

Beef: Sales in the segment increased to $5,489 million from $5,261 million reported in the year-ago quarter. Volumes fell 8.4%, and the average price jumped 17% in the segment.

Pork: Sales in the segment declined to $1,414 million from $1,438 million reported in the year-ago quarter. Volumes dipped 4.2%, but the average price increased 11.6%.

Chicken: Sales in the segment improved to $4,411 million from $4,251 million reported in the year-ago quarter. Volumes grew 3.7% and the average price was up 0.1%.

Prepared Foods: Sales in the segment came in at $2,546 million, up from $2,472 million reported in the year-ago quarter. Volumes dipped 1.7% and the average price rose 4.7%.

International/Other: Sales in the segment were $584 million compared with $609 million reported in the year-ago quarter. Volumes fell 2.2%, whereas the average sales price declined 1.9%.

Tyson Foods’ Other Financial Updates

The company exited the quarter with cash and cash equivalents of $1,229 million, long-term debt of $7,921 million and total shareholders’ equity (including non-controlling interests) of $18,227 million. For the 12 months ended Sept. 27, 2025, cash provided by operating activities amounted to $2,155 million.

Liquidity was $3.7 billion as of Sept. 27, 2025. Management expects total liquidity to stay above the company’s minimum target of $1 billion in fiscal 2026.

Tyson Foods projects capital expenditures in the range of $700 million and $1 billion for fiscal 2026, involving investments in profit-improvement projects and projects for maintenance and repair.

During fiscal 2025, TSN repurchased 3.5 million shares for $196 million.

Adjusted free cash flow amounted to $1,177 million in fiscal 2025. In fiscal 2026, free cash flow is expected to be in the range of $0.8-$1.3 billion.

What to Expect From TSN in FY26?

For fiscal 2026, the United States Department of Agriculture (USDA) anticipates domestic protein production (beef, pork, chicken and turkey) to rise around 1% compared with the fiscal 2025 level.

For the Beef segment, the USDA projects domestic protein production to dip nearly 2% year over year, with an adjusted operating loss of $600-$400 million in fiscal 2026. For Pork, the USDA projects domestic production to grow nearly 3%, with adjusted operating income of $150-$250 million. For Chicken, the USDA expects domestic protein production to grow about 1% year over year and adjusted operating income of $1,250-$1,500 million.

For Prepared Foods, management projects adjusted operating income of $950-1,050 million for fiscal 2026, while for International/Other, it expects similar results from foreign operations on an adjusted basis.

Total company’s revenue growth is anticipated in the range of 2-4% in fiscal 2026 compared with the fiscal 2025 level. Adjusted operating income is envisioned in the $2.1-$2.3 billion band.

The Zacks Rank #3 (Hold) company’s shares have tumbled 7.1% in the past three months compared with the industry’s fall of 29.4%.

Better-Ranked Food Stocks to Consider

United Natural Foods, Inc. (UNFI) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.

Lamb Weston Holdings, Inc. (LW) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. LW delivered a trailing four-quarter earnings surprise of 16%, on average.

The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.

The J.M. Smucker (SJM), a consumer food and beverage products and pet food and pet snacks company, carries a Zacks Rank #2 (Buy) at present. SJM delivered a trailing four-quarter earnings surprise of 5.1%, on average.

The Zacks Consensus Estimate for The J.M. Smucker’s current fiscal-year sales implies an increase of 3.3% from the prior-year level.

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This article originally published on Zacks Investment Research (zacks.com).

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