Tyson Foods lowered its fiscal 2026 forecast Thursday, telling investors it now expects adjusted operating income of $1.85 billion to $2.05 billion, down from the outlook it issued just a month earlier. The company also trimmed its revenue growth projection to a range of 1.5% to 2.0%, pointing to significant margin compression in its beef business.
Tyson attributed the pressure to volatile cattle prices and what it described as one of the most severe cattle shortages in U.S. history, a combination that has squeezed margins across its beef segment. Shares fell 7.26% to $51.76 from $55.81 in the session that followed the announcement, extending a decline that has pulled the stock down 6.49% over the last five trading days and 8.79% over the last 30. The stock is now trading closer to its 52-week low of $50.56 than its 52-week high of $69.48.
Tyson wasn't alone in disappointing investors Thursday. Campbell's also reported weaker-than-expected quarterly earnings and cut its dividend, adding to a broader selloff in food stocks. For Tyson specifically, this marks the second time in as many months that management has walked back expectations, a pattern that raises the question of how much further cattle costs could weigh on results before the pressure eases.
Investors will be watching whether the cattle shortage Tyson cited shows signs of stabilizing, and whether the company's other protein segments can offset continued weakness in beef. Until cattle prices show more predictability, the guidance cuts may keep the stock anchored near the lower end of its 52-week range.