01—Abstract
Summary
Summary of the 10-Q filed February 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods, Inc. reported sales of $14,313 milliona for the first quarter of fiscal 2026 (quarter ended December 27, 2025), up from $13,623 million a year earlier, a 5.1% increase driven mainly by higher average sales prices.
Operating income fell to $302 millionb from $580 million, and net income attributable to Tyson declined to $85 million from $359 million, or $0.24 per diluted share versus $1.01. The filing attributes the profit decline largely to a Beef segment operating loss of $(319) million, compared with $(26) million a year earlier, driven by higher cattle costs and limited cattle supply. The quarter also included $155 million of pretax legal contingency accruals, $117 million of restructuring and related charges, and a $75 million impairment of equity investments.
Cash provided by operating activities was $942 millionc, compared with $1,031 million in the prior-year quarter. Cash and cash equivalents were $1,278 million, and total liquidity was $4,528 million at quarter end. Total debt was $8,362 million, including $909 million of current debt.
During the quarter, Tyson entered into a $750 milliond revolving term loan credit facility and repaid a $440 million term loan using cash on hand. Management expects fiscal 2026 capital expenditures of $0.7 billion to $1.0 billion and net interest expense of approximately $370 million. The filing discloses ongoing antitrust litigation with accrued liabilities of $353 million for the Beef matter and $206 million for the Pork matter.
It also discloses a Mexican tax assessment of approximately $519 million for which no liability has been recorded, after the purchaser agreed to assume the tax liabilities in a November 2025 settlement. Management stated that the company was in compliance with all debt covenants at December 27, 2025.
02—Key points
Key Highlights
- Sales rose 5.1% to $14,313 million, with average sales price up 6.5% and sales volume down 0.3%.
- Operating income declined 48% to $302 million from $580 million; operating margin was 2.1%.
- Beef segment operating loss widened to $(319) million from $(26) million, with a segment operating margin of (5.5)%.
- Net income attributable to Tyson was $85 million, or $0.24 per diluted share, versus $359 million, or $1.01 per diluted share, a year earlier.
- Charges affecting comparability included $155 million of legal contingency accruals, $117 million of restructuring and related charges, and a $75 million impairment of equity investments.
- Cash from operations was $942 million, and total liquidity was $4,528 million at December 27, 2025.
- Total debt was $8,362 million, and the company repaid a $440 million term loan while entering a $750 million revolving term loan credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Tyson Foods kept $0.01.
- Revenue$14.31B100.0%
- Cost of revenue−$13.51B94.4%
- Gross profit$808.0M5.6%
- Operating costs−$506.0M3.5%
- Operating income$302.0M2.1%
- Interest, other & tax−$217.0M1.5%
- Net income$85.0M0.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 2, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $14.31B$13.62B | +5.1% |
| Cost of Revenue | $13.51B$12.53B | +7.8% |
| Gross Profit | $808.00M$1.09B | −26.2% |
| SG&A Expenses | $506.00M$515.00M | −1.7% |
| Operating Income | $302.00M$580.00M | −47.9% |
| Net Income | $85.00M$359.00M | −76.3% |
| EPS (Diluted) | $0.24$1.01 | −76.2% |
| Shares Outstanding (Diluted) | 354.00M357.00M | −0.8% |
05—Questions
Frequently Asked Questions
What drove the decline in operating income this quarter?
Gross profit fell to $808 million from $1,095 million as cost of sales rose $977 million. The filing attributes $850 million of the cost increase to higher cattle costs in the Beef segment and about $110 million to higher raw material costs in Prepared Foods. Beef's segment operating loss of $(319) million also reflected $90 million of legal contingency accruals and a $30 million inventory lower of cost or net realizable value adjustment.
How did the segments perform?
Chicken segment operating income was $450 million versus $460 million, with a 10.7% margin. Prepared Foods rose to $322 million from $297 million, with a 12.0% margin. Pork fell to $50 million from $73 million, with a 3.1% margin, reflecting a $60 million legal contingency accrual. International was flat at $41 million, with a 7.0% margin.
What legal exposures does the filing disclose?
The legal contingency accrual for the Beef Antitrust Civil Litigation was $353 million at December 27, 2025, after a $90 million increase in the quarter. The Pork Antitrust Civil Litigation accrual was $206 million after a $60 million increase and $122 million of payments. The Broiler accrual was $64 million. The company also received a Mexican tax assessment of approximately $519 million, for which it has recorded no liability because the purchaser agreed to assume the tax liabilities in a November 14, 2025 settlement.
What is the company's liquidity position and outlook?
Cash and cash equivalents were $1,278 million, and total liquidity was $4,528 million, including $2,500 million available under the revolving credit facility and $750 million under the revolving term loan credit facility. Current debt was $909 million, which management intends to pay from existing cash, operating cash flow and other liquidity sources. For fiscal 2026, the company expects capital expenditures of $0.7 billion to $1.0 billion and net interest expense of approximately $370 million.
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