Tyson Foods, Inc. (NYSE:TSN) delivered a stronger-than-expected first quarter, with both adjusted earnings and revenue coming in ahead of forecasts, supported by solid momentum in its prepared foods business and continued market share gains in chicken.
The food producer reported adjusted earnings per share of $0.97, beating the consensus estimate of $0.93. Revenue rose 5.1% year on year to $14.31 billion, also exceeding analyst expectations of about $14.0 billion. Tyson shares gained around 1% following the release.
“Our first quarter results reflect solid execution across our portfolio,” said Donnie King, President & CEO of Tyson Foods. “Prepared Foods delivered top and bottom-line growth while Chicken reported its fifth consecutive quarter of year-over-year volume gains.”
The prepared foods segment, home to brands such as Jimmy Dean and Hillshire Farm, posted a 7.9% increase in sales to $2.67 billion and generated operating income of $322 million. In the chicken division, volumes rose 3.7%, although revenue edged up only slightly to $4.21 billion due to largely flat pricing.
Beef continued to be a weak spot, with the segment recording an adjusted operating loss of $143 million, though this marked an improvement compared with recent quarters. The pork business performed better, delivering adjusted operating income of $111 million, up from $73 million a year earlier.
Looking ahead, Tyson reaffirmed its fiscal 2026 guidance, projecting total adjusted operating income of $2.1 billion to $2.3 billion and revenue growth of between 2% and 4% versus fiscal 2025.
During the quarter, the company generated $942 million in operating cash flow and reduced total debt by $468 million. Free cash flow came in at $690 million, slightly below the $760 million recorded in the same period last year.
“As protein demand continues to increase, our consistent share gains demonstrate we are well-positioned to capture this momentum,” King added.