Tyson Foods, Inc. (NYSE:TSN) posted better-than-expected fourth-quarter results on Monday, driven by solid sales growth and improved profitability across several business segments. The company’s shares rose 2% in premarket trading following the announcement.
The meat and poultry producer reported adjusted earnings of $1.15 per share, well above analyst expectations of $0.87. Quarterly revenue totaled $13.86 billion, up 2.2% year-over-year, though slightly below the consensus estimate of $14.13 billion.
Tyson’s adjusted operating income climbed 19% to $608 million, with an operating margin of 4.3%, up from 3.8% in the same period last year. Among its divisions, the Chicken segment delivered standout performance, achieving a 10.1% operating margin.
“We delivered year-over-year growth in sales, adjusted operating income and adjusted earnings per share, reflecting the strength of our multi-protein, multi-channel portfolio,” said Donnie King, President and CEO of Tyson Foods. “This fiscal year’s progress demonstrates our commitment to operational excellence while meeting the evolving needs of our customers and consumers.”
Looking ahead, Tyson projects adjusted operating income between $2.1 billion and $2.3 billion for fiscal 2026, with sales growth of 2% to 4% over fiscal 2025. The company also announced a 2% increase in its annual dividend, underscoring confidence in its financial outlook.
The Chicken business is expected to remain a key growth driver, with projected adjusted operating income between $1.25 billion and $1.5 billion in fiscal 2026. In contrast, the Beef segment continues to face headwinds, with anticipated operating losses between $400 million and $600 million.
During fiscal 2025, Tyson reduced total debt by $957 million and generated free cash flow of $1.18 billion, down from $1.46 billion the previous year, reflecting higher investment in operations amid a challenging protein market.