Tyson Foods lowered its fiscal 2026 outlook, trimming revenue growth guidance to 1.5% to 2.0% from 2.5% to 3.5% and cutting adjusted operating income guidance to a range of $1.85 billion to $2.05 billion from $2.1 billion to $2.3 billion. Management blamed intensifying margin compression in Beef amid one of the most severe cattle shortages in U.S. history, and CEO Donnie King said the company is restructuring its Beef network around three strategically located facilities to lower costs, though those benefits aren't expected to show up until fiscal 2027. The pressure deepened after the Trump administration authorized an additional 300,000 metric tons of lean beef trimmings to enter the country without above-quota tariffs for 90 days, a move explicitly aimed at pushing ground beef prices roughly 25% below current market levels. Analysts have cut their numbers in response, with the current-quarter EPS estimate falling from $1.21 ninety days ago to $0.99 today, the current-year estimate dropping from $4.14 to $3.82, and next year's estimate slipping from $4.68 to $4.27, or 9%. Goldman Sachs kept its Buy rating but lowered its price target to $67 from $77, and the stock, valued at $18 billion with a forward PE of 14, has fallen to 52-week lows.
Tyson Foods IncSevere U.S. cattle shortage compresses Tyson's Beef margins, driving the fiscal 2026 guidance cut.
Hormel Foods Corporation
Goldman Sachs Group IncGoldman Sachs lowered its Tyson price target to $67 from $77, an analyst valuation cut.
