01—Abstract
Summary
Summary of the 8-K filed February 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods, Inc. (NYSE: TSN) reported first quarter fiscal 2026 results for the quarter ended December 27, 2025, in a press release furnished as Exhibit 99.1.
Sales were $14.31 billiona, up from $13.62 billion a year earlier, though the filing notes a $150 million increase in legal contingency accruals recognized as a reduction to Sales. GAAP operating income fell to $302 million from $580 million, and GAAP diluted EPS was $0.24 versus $1.01. On an adjusted basis, operating income was $572 million versus $659 million and adjusted EPS was $0.97 versus $1.14.
Beef was the main drag, with a segment operating loss of $319 millionb as reported, while Prepared Foods and Chicken remained the most profitable segments on an as-reported basis. Cash provided by operating activities was $942 million, down from $1,031 million, and free cash flow was $690 million versus $760 million. Total debt was reduced by $468 million, and liquidity stood at $4.5 billion as of December 27, 2025.
Long-term debt fell to $7.45 billionc from $7.92 billion at September 27, 2025. For fiscal 2026, management guides to total company adjusted operating income of $2.1 billion to $2.3 billion, sales growth of 2% to 4%, free cash flow of $1.1 billion to $1.7 billion, and capital expenditures of $0.7 billion to $1.0 billion.
Beef is expected to post an adjusted segment operating loss of $(500) million to $(250) million, while Chicken is guided to $1.65 billion to $1.90 billiond. The company also changed its segment reporting in this quarter, no longer allocating corporate expenses and amortization to segments and separately reporting International as a reportable segment.
02—Key points
Key Highlights
- Sales of $14.31 billion, up from $13.62 billion; the filing notes a $150 million legal contingency accrual recognized as a reduction to Sales.
- GAAP operating income of $302 million versus $580 million, and GAAP diluted EPS of $0.24 versus $1.01.
- Adjusted operating income of $572 million versus $659 million, and adjusted EPS of $0.97 versus $1.14, excluding restructuring, legal contingency accruals and an equity investment impairment.
- Beef segment operating loss of $(319) million as reported, compared with $(26) million a year earlier; Chicken segment operating income was $450 million versus $460 million.
- Cash from operations of $942 million and free cash flow of $690 million, both lower year over year; total debt reduced by $468 million.
- Liquidity of $4.5 billion as of December 27, 2025, with fiscal 2026 guidance calling for adjusted operating income of $2.1 billion to $2.3 billion.
- Segment reporting changed in fiscal 2026: corporate expenses and amortization are no longer allocated to segments, and International is now a reportable segment.
03—Questions
Frequently Asked Questions
What drove the decline in GAAP operating income this quarter?
The filing shows GAAP operating income of $302 million versus $580 million. The reconciliation identifies restructuring and related charges of $115 million and legal contingency accruals of $155 million in the current quarter, and the Beef segment's as-reported operating loss widened to $(319) million from $(26) million.
What is the fiscal 2026 outlook for Beef?
Tyson projects USDA domestic beef production to decrease approximately 2% in fiscal 2026 and anticipates a segment operating loss, as adjusted, of $(500) million to $(250) million.
How is management guiding cash generation for fiscal 2026?
Tyson expects free cash flow of $1.1 billion to $1.7 billion, capital expenditures of $0.7 billion to $1.0 billion, and net interest expense of approximately $370 million for fiscal 2026.
Why are the non-GAAP figures emphasized, and how should investors view them?
The company presents adjusted operating income, adjusted EPS and free cash flow as supplemental measures that exclude items such as restructuring, legal contingency accruals and impairments. The filing states that investors should rely primarily on GAAP results and that the company cannot reconcile its full-year adjusted outlook to GAAP without unreasonable effort.
What changed in how Tyson reports its segments?
Beginning in the first quarter of fiscal 2026, corporate expenses and amortization are no longer allocated to segments, and International is identified as a reportable segment. Prior-period amounts were recast to reflect this presentation.
04—Continue