Tyson Foods' third-quarter profit nearly tripled to $182 million from $61 million last year, but it lowered its fiscal 2026 outlook as rising cattle costs kept its beef business in the red.
The big picture: Chicken and prepared foods are helping Tyson withstand a tight cattle supply, though both segments' reported operating income fell from a year earlier.
By the numbers: Beef posted a $142 million operating loss, narrower than last year's $459 million reported loss. On an adjusted basis, however, the beef loss widened to $138 million from $116 million.
Chicken posted $389 million in operating income, down from $475 million.
Prepared Foods posted $312 million in operating income, down from $390 million.
Pork posted $60 million in operating income, up from $50 million.
Between the lines: Wes Morris, chief operating officer, called a 3% increase in heifer retention an early sign of rebuilding cattle supplies. Reopening the Mexican border to cattle would not materially affect fiscal 2026, he told investors on the company's earnings call.
What's next: Tyson expects $2.1 billion to $2.3 billion in adjusted operating income for fiscal 2026, down from $2.2 billion to $2.4 billion. It projects an adjusted beef loss of $500 million to $650 million.
Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.
