Tyson Foods cuts profit forecast as beef losses widen

Tyson Foods has lowered its annual profit forecast and warned of steeper losses in its beef business, citing persistent and severe cattle supply shortages that are driving up costs and squeezing margins. The announcement, made on August 3, 2026, follows the company's third-quarter financial results for the period ended June 27.

The meatpacking giant now expects adjusted operating income for fiscal 2026 to be between $2.1 billion and $2.3 billion, down from a prior forecast of $2.2 billion to $2.4 billion. The downward revision is driven by a significantly worse outlook for its beef segment, which is now projected to post an operating loss of $500 million to $650 million for the year. This compares to an earlier forecast of a loss between $350 million and $500 million.

In the third quarter, the beef segment posted an operating loss of $138 million. The company reported a 15.9% decline in beef sales volume, which was only partially offset by a 12.1% increase in prices. Executives attributed the pressure to a historic shortage of cattle. A multi-year drought has driven up feed costs and prompted U.S. ranchers to reduce herds to their smallest size in 75 years, keeping livestock...