01—Abstract
Summary
Summary of the 10-Q filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods reported third-quarter fiscal 2026 sales of $13.87 billiona, roughly flat against $13.88 billion a year earlier, as lower Beef volume was offset by higher sales in the other segments.
Operating income rose to $362 millionb from $260 million, helped by the absence of the prior year's $343 million goodwill impairment and by higher Beef and Pork segment operating income. Net income attributable to Tyson was $182 million, or $0.52 per diluted share, versus $61 million, or $0.17, a year earlier. For the nine months, sales grew 3% to $41.83 billion and operating income rose 17% to $1.10 billion, with diluted EPS of $1.49 compared with $1.20.
Results absorbed significant charges in the quarter. These included a $98 millionc Chicken segment legal contingency accrual, $73 million of executive leadership transition charges, and $14 million of restructuring and related charges. Nine-month legal contingency accruals totaled $269 million.
Beef remained loss-making, with a segment operating loss of $142 milliond in the quarter, though this improved from $459 million a year earlier. Cash provided by operating activities fell to $1.47 billion from $1.62 billion for the nine months, reflecting higher payments of accrued legal contingencies and lower income tax receivables. Total debt declined to $8.01 billion from $8.83 billion, and total liquidity was $3.99 billion at quarter-end.
Looking ahead, the company expects capital expenditures of $0.7 billion to $0.9 billion and net interest expense of about $365 million for fiscal 2026. It expects $29 million of executive transition charges and a $20 million net income benefit from the Beef asset sale in the fourth quarter.
In July 2026, the company sold its 40% stake in a Brazilian poultry producer for $120 million and settled an Oklahoma environmental lawsuit with an estimated $18 million obligation. The company reported no material changes to risk factors and stated it was in compliance with all debt covenants.
02—Key points
Key Highlights
- Third-quarter sales were $13.87 billion, essentially flat versus $13.88 billion, with lower Beef volume offset by gains in other segments; nine-month sales rose 3% to $41.83 billion.
- Operating income increased to $362 million from $260 million in the third quarter, and nine-month operating income rose 17% to $1.10 billion.
- Diluted EPS was $0.52 in the third quarter versus $0.17 a year earlier, and $1.49 for the nine months versus $1.20.
- Charges weighed on results: $98 million of legal contingency accruals in Chicken, $73 million of executive leadership transition charges, and $14 million of third-quarter restructuring charges.
- Beef segment operating loss narrowed to $142 million in the third quarter from $459 million a year earlier; Pork segment operating income rose to $60 million from $50 million.
- Operating cash flow for the nine months was $1.47 billion versus $1.62 billion, and total debt fell to $8.01 billion from $8.83 billion.
- Pending matters include a potential Mexican tax assessment of about $537 million for which no liability is recorded, and up to about $127 million of proposed IRS adjustments that the company is contesting.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Tyson Foods kept $0.01.
- Revenue$13.87B100.0%
- Cost of revenue−$12.95B93.4%
- Gross profit$921.0M6.6%
- Operating costs−$559.0M4.0%
- Operating income$362.0M2.6%
- Interest, other & tax−$180.0M1.3%
- Net income$182.0M1.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed August 3, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $13.87B$13.88B | −0.1% |
| Cost of Revenue | $12.95B$12.74B | +1.6% |
| Gross Profit | $921.00M$1.14B | −19.3% |
| SG&A Expenses | $559.00M$538.00M | +3.9% |
| Operating Income | $362.00M$260.00M | +39.2% |
| Net Income | $182.00M$61.00M | +198.4% |
| EPS (Diluted) | $0.52$0.17 | +205.9% |
| Shares Outstanding (Diluted) | 355.00M357.00M | −0.6% |
05—Questions
Frequently Asked Questions
Why did operating income improve despite flat sales?
The third-quarter operating income of $362 million compared with $260 million a year earlier mainly reflects the absence of the prior year's $343 million goodwill impairment in Beef. Segment operating income also increased in Beef and Pork, partially offset by lower results in Chicken, Prepared Foods and International and higher corporate expenses, which included the $73 million of executive transition charges.
How large are the legal contingency accruals and what do they relate to?
The company recorded a $98 million legal contingency accrual in the Chicken segment in the third quarter, and $269 million for the nine months across Chicken, Beef, Pork and International. The filing ties these to the Broiler, Pork and Beef antitrust matters, and it states that a range of possible loss in excess of the recorded accruals is not reasonably estimable at this time.
What is the company's liquidity and debt position?
At June 27, 2026, the company had $740 million of cash and cash equivalents, total liquidity of $3.99 billion including undrawn revolving facilities, and total debt of $8.01 billion, of which $1.43 billion is current. The company said it intends to pay current debt with existing cash, operating cash flow and other liquidity sources, and it was in compliance with all debt covenants.
What significant events occurred after the quarter ended?
In July 2026, the company completed the sale of its 40% minority interest in a Brazilian poultry producer for $120 million, with $84 million received at closing and $36 million due in July 2027. On July 10, 2026, the company and other defendants agreed to settle an Oklahoma environmental lawsuit, with the company's obligation about $18 million. The company also repurchased about $49 million of Class A stock after the quarter-end.
06—Continue