Smithfield Foods Inc. (NASDAQ:SFD) lowered its fiscal 2026 revenue outlook on Tuesday after reporting a decline in third-quarter sales and adjusted earnings, reflecting changes in fresh pork and hog commodity markets.
The food producer reported revenue of $3.4 billion for the quarter ended September 27, 2026, representing an 8.3% decrease compared with the corresponding period of 2025. Adjusted earnings per share declined to $0.26 from $0.58 a year earlier.
Smithfield now expects full-year sales to decline by a low-single-digit percentage compared with fiscal 2025.
Shares fell nearly 4% in premarket trading following the announcement.
Smithfield Foods Reports Lower Third-Quarter Revenue and Earnings
Smithfield Foods recorded third-quarter revenue of $3.4 billion, down 8.3% year over year.
Adjusted earnings per share totaled $0.26, compared with $0.58 in the corresponding quarter of 2025.
The decline in adjusted earnings per share amounted to approximately 55% year over year.
The company attributed the quarterly performance partly to conditions in fresh pork and hog commodity markets.
These developments affected consolidated revenue and profitability during the reporting period.
Adjusted Operating Profit Declines to $145 Million
Smithfield reported adjusted operating profit of $145 million for the third quarter, compared with $310 million in the prior-year period.
The reduction represented approximately 53% year over year.
Adjusted operating profit margin declined to 4.2%, compared with 8.3% in the third quarter of 2025.
The decrease of 410 basis points reflected lower profitability at the consolidated company level.
The results included differences in performance across Smithfield’s Packaged Meats, Fresh Pork and Hog Production businesses.
Packaged Meats Operating Profit Increases to $230 Million
Smithfield’s Packaged Meats segment reported operating profit of $230 million during the third quarter, compared with $226 million in the corresponding period of 2025.
Operating profit margin increased to 11.6% from 10.8% a year earlier.
The improvement represented an increase of 80 basis points.
The segment’s performance contrasted with the decline in consolidated adjusted operating profit.
Packaged Meats remained a contributor to Smithfield’s profitability during the quarter, despite lower revenue and adjusted earnings at the group level.
Fresh Pork and Hog Commodity Markets Affect Performance
Smithfield identified conditions in fresh pork and hog commodity markets as factors affecting its third-quarter financial results.
The company reported lower consolidated sales, adjusted operating profit and adjusted earnings per share compared with the previous year.
These market conditions also formed part of the context for Smithfield’s revised annual sales forecast.
The company provided separate full-year operating profit expectations for its Fresh Pork and Hog Production segments, reflecting differences in anticipated financial performance across the businesses.
Smithfield Lowers Full-Year 2026 Revenue Forecast
Smithfield now expects total company sales to decline by a low-single-digit percentage in fiscal 2026 compared with fiscal 2025.
The updated outlook reflects the company’s expectations for revenue during the remainder of the financial year.
Smithfield did not provide a specific dollar revenue range in the supplied announcement.
The revised guidance follows an 8.3% year-over-year decline in third-quarter revenue to $3.4 billion.
Full-Year Adjusted Operating Profit Forecast at $900 Million to $1 Billion
For fiscal 2026, Smithfield expects total company adjusted operating profit of between $900 million and $1.0 billion.
The company also provided separate operating profit guidance for its principal business segments.
Packaged Meats is expected to generate adjusted operating profit of between $1.09 billion and $1.14 billion.
The segment’s forecast reflects management’s expectations for its packaged meat operations over the full financial year.
The consolidated adjusted operating profit range also incorporates the expected performance of Smithfield’s other businesses.
Fresh Pork Segment Forecast Ranges From Loss to Breakeven
Smithfield expects its Fresh Pork segment to report adjusted operating results ranging from a loss of $50 million to breakeven for fiscal 2026.
The guidance indicates that management expects the segment’s full-year financial result to remain between a modest operating loss and no operating profit.
The forecast follows the company’s identification of fresh pork commodity market conditions as a factor affecting quarterly performance.
The segment’s eventual result will contribute to Smithfield’s consolidated adjusted operating profit for the year.
Hog Production Outlook Ranges From $25 Million Loss to Profit
For the Hog Production segment, Smithfield forecasts adjusted operating results between a loss of $25 million and a profit of $25 million.
The range reflects the company’s expectations for financial performance within its hog production operations.
The guidance also illustrates the variation in projected results across Smithfield’s operating businesses.
Packaged Meats is expected to remain profitable for the year, while the Fresh Pork and Hog Production forecasts include the possibility of operating losses.
Capital Expenditure Guidance Set at $350 Million to $375 Million
Smithfield expects capital expenditures of between $350 million and $375 million for fiscal 2026.
The forecast excludes investments associated with the company’s proposed Sioux Falls processing facility.
The capital expenditure range therefore relates to spending outside the proposed facility investment.
The company did not provide a separate investment amount or construction timetable for the Sioux Falls project in the supplied announcement.
Smithfield Forecasts Effective Tax Rate of 22.5% to 24.5%
Smithfield expects its effective tax rate for fiscal 2026 to range between 22.5% and 24.5%.
The forecast forms part of the company’s annual financial guidance alongside expectations for sales, adjusted operating profit and capital expenditures.
The effective tax rate will affect the relationship between pretax earnings and reported net income during the financial year.
Smithfield Shares Decline Following Updated Outlook
Smithfield Foods shares fell nearly 4% in premarket trading on Tuesday following the release of its third-quarter results and revised annual revenue forecast.
The movement accompanied an 8.3% decline in quarterly sales, lower adjusted earnings per share and a reduction in adjusted operating profit.
The company also reported improved operating profit and margins within its Packaged Meats segment.
The available information does not establish a single cause for the share price movement.
What Should Investors Monitor Following Smithfield’s Results?
Smithfield’s third-quarter results showed lower consolidated revenue and adjusted earnings, alongside higher operating profit in Packaged Meats.
The company now expects fiscal 2026 sales to decline by a low-single-digit percentage and adjusted operating profit to range from $900 million to $1.0 billion.
Its segment forecasts include adjusted operating profit of $1.09 billion to $1.14 billion for Packaged Meats, a potential loss of up to $50 million in Fresh Pork and a range of negative $25 million to positive $25 million in Hog Production.
Subsequent financial reports will provide further information about commodity market conditions, segment profitability, capital expenditures and progress against the company’s revised annual outlook.