01—Abstract
Summary
Summary of the 10-Q filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods, Inc. reported improved operating results for the second quarter and first six months of fiscal 2026 ended March 28, 2026.
Sales were $13.65 billiona for the quarter, up from $13.07 billion a year earlier, and $27.97 billion for the six months, up from $26.70 billion. Operating income was $435 million for the quarter versus $100 million, and $737 million for the six months versus $680 million. Net income attributable to Tyson was $260 million, or $0.73 per diluted share, for the quarter, compared with $7 million, or $0.02 per diluted share, a year earlier.
For the six months, net income attributable to Tyson was $345 millionb, or $0.97 per diluted share, versus $366 million, or $1.03 per diluted share. The comparison to the prior-year quarter was distorted by $343 million of legal contingency accruals recorded in the second quarter of fiscal 2025. Segment results were mixed.
Beef reported a segment operating loss of $240 millionc for the quarter, with the filing citing reduced cattle availability and compressed Beef margins, while Pork, Chicken and Prepared Foods improved. Chicken delivered segment operating income of $505 million and Prepared Foods $348 million. Cash provided by operating activities was $829 million for the six months, and cash and cash equivalents declined to $500 million from $1.23 billion at September 27, 2025, as the company repaid debt.
Total debt was $8.08 billiond at March 28, 2026, and total liquidity was stated at $3.72 billion. The filing also highlights ongoing legal and tax exposures. Accrued legal contingencies fell to $507 million from $712 million, following payments under the pork and beef antitrust matters.
The company disclosed an IRS examination with proposed adjustments of up to approximately $127 million, excluding interest and penalties, which it disputes. Management stated that Middle East geopolitical tensions have not had a material impact to date, and it expects fiscal 2026 capital expenditures of $0.7 billion to $1.0 billion.
02—Key points
Key Highlights
- Second-quarter sales rose to $13.65 billion from $13.07 billion, and operating income increased to $435 million from $100 million.
- Net income attributable to Tyson was $260 million ($0.73 per diluted share) for the quarter, versus $7 million ($0.02 per diluted share) a year earlier; the prior-year quarter included $343 million of legal contingency accruals.
- Beef segment operating loss widened to $240 million in the quarter from $222 million, with the filing citing limited cattle supply and compressed Beef margins.
- Chicken segment operating income rose to $505 million from $367 million, and Pork segment operating income swung to $41 million from a $181 million loss.
- Cash and cash equivalents fell to $500 million from $1.23 billion at fiscal year-end, after debt payments including the $800 million March 2026 Notes and a $440 million term loan; total debt was $8.08 billion.
- Total liquidity was $3.72 billion at March 28, 2026, and the company was in compliance with all debt covenants.
- The company recorded a $75 million impairment of equity investments in the first quarter and disclosed a potential IRS tax exposure of up to approximately $127 million, excluding interest and penalties, which it disputes.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Tyson Foods kept $0.02.
- Revenue$13.65B100.0%
- Cost of revenue−$12.69B93.0%
- Gross profit$962.0M7.0%
- Operating costs−$527.0M3.9%
- Operating income$435.0M3.2%
- Interest, other & tax−$175.0M1.3%
- Net income$260.0M1.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $13.65B$13.07B | +4.4% |
| Cost of Revenue | $12.69B$12.47B | +1.7% |
| Gross Profit | $962.00M$600.00M | +60.3% |
| SG&A Expenses | $527.00M$500.00M | +5.4% |
| Operating Income | $435.00M$100.00M | +335.0% |
| Net Income | $260.00M$7.00M | +3614.3% |
| EPS (Diluted) | $0.73$0.02 | +3550.0% |
| Shares Outstanding (Diluted) | 354.00M357.00M | −0.8% |
05—Questions
Frequently Asked Questions
Why did Tyson's profitability improve so sharply compared with the prior-year quarter?
The second quarter of fiscal 2025 included $343 million of legal contingency accruals that reduced sales and operating income. In fiscal 2026, the company recorded $16 million of such accruals in the second quarter. Higher segment operating income in Pork, Chicken and Prepared Foods also contributed to the improvement.
How did the Beef segment perform, and what drove it?
Beef sales were $5.21 billion for the quarter, but the segment posted an operating loss of $240 million, compared with a $222 million loss a year earlier. The filing attributes the loss to compressed Beef margins and higher restructuring charges, with sales volume down 13.1% reflecting reduced cattle availability and network optimization.
What is the status of Tyson's major antitrust litigation?
The accrued legal contingency balance declined to $507 million in total from $712 million at fiscal year-end, reflecting payments. Pork Antitrust accruals were $144 million, Beef Antitrust accruals were $267 million, and Broiler Antitrust accruals were $46 million. The company stated it does not believe a range of possible loss in excess of the recorded accruals is reasonably estimable for these matters.
What is the company's liquidity and debt position?
Total debt was $8.08 billion at March 28, 2026, compared with $8.83 billion at September 27, 2025. Total liquidity was $3.72 billion, including $500 million of cash, undrawn revolving credit availability of $2.5 billion and $750 million under a revolving term loan, less $30 million of commercial paper outstanding. The company said it expects to meet current debt maturities of $141 million from cash and operating cash flow.
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