Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Tyson Foods' fiscal Q3 2026 results were defined by lapping a prior-year goodwill impairment, which drove a sharp year-over-year increase in reported operating income. The absence of the $343 million charge masked underlying pressure, as the Beef segment remained deeply unprofitable due to tight cattle supply and elevated costs, while a $98 million legal contingency accrual and $73 million in executive leadership transition charges further weighed on earnings. Gross margin contracted notably as input cost inflation outpaced price increases, and cash reserves fell sharply as the company deployed capital for debt repayment and restructuring. While the Pork and Chicken segments delivered solid profitability, the Beef segment's challenges and significant one-time costs underscore the fragile nature of the bottom-line improvement.
Revenue
$13.87B
-0.12% YoY
EPS (Diluted)
$0.52
+205.88% YoY
Gross Margin
6.6%
-1.6 pts YoY
Operating Income
$362M
+39.23% YoY
Source: SEC XBRL
Tyson Foods (TSN) reported Q3 FY2026 revenue of $13.87B, down 0.1% year over year. Operating margin was 2.6%, up 0.7 points from 1.9% a year earlier. TSN's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.99 | 1.00 | Miss -0.7% |
| Mar 2026 | 0.87 | 0.79 | Beat +10.4% |
| Dec 2025 | 0.97 | 0.95 | Beat +2.1% |
| Sep 2025 | 1.15 | 0.84 | Beat +36.5% |
Adjusted (non-GAAP) EPS of $0.99 versus the $1.00 analyst consensus — a -0.7% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.52.
5 reported segments · SEC XBRL
Segment revenue totals $14.38B; with -$516M of reconciling items (corporate, unallocated and eliminations) it ties to the $13.87B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Tyson now expects $241 million in total pretax net charges from approved actions, including closing a Beef harvesting facility and a Prepared Foods plant, with $240 million already recognized through Q3.
Source: 10-Q Item 2 MD&A
A $98 million legal contingency accrual was recorded in Q3, impacting the Chicken segment and reducing both reported sales and operating income.
Source: 10-Q Item 2 MD&A
Corporate expenses included $73 million of charges related to executive leadership transitions, with no comparable item in the prior year.
Source: 10-Q Item 2 MD&A
Beef operating results were negatively impacted by a $40 million lower-of-cost-or-net-realizable-value inventory adjustment, reflecting high cattle costs relative to market.
Source: 10-Q Item 2 MD&A
Fiscal 2026 capital expenditures are projected in the range of $0.7–0.9 billion, directed toward profit improvement projects and maintenance.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Limited market-ready cattle availability and elevated costs drove Beef segment margins to -2.6% in Q3, and the timing of herd rebuilding remains uncertain, posing a high risk to future profitability.
Source: 10-Q Item 2 MD&A
The company has recorded $269 million in legal contingency accruals year-to-date, including a $98 million Q3 charge, indicating significant ongoing litigation risks that could lead to further financial impact.
Source: 10-Q Item 2 MD&A
Rising freight, transportation, and raw material costs contributed to gross margin declining to 6.6% from 8.2% a year ago, and sustained cost inflation could further erode margins across segments.
Source: 10-Q Income Statement (XBRL)
The multi-year restructuring plan involves plant closures and shift reductions that may disrupt operations or fail to achieve anticipated savings, with implementation risks persisting over the near term.
Source: 10-Q Item 2 MD&A
Cash and equivalents fell 52% year-over-year to $740 million, while current liabilities rose 16%, reducing financial flexibility and increasing reliance on operating cash flows to meet obligations.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 13.87 $B | 13.88 $B | -0.12% |
Cost of Revenue $B | 12.95 $B | 12.74 $B | +1.60% |
Gross Profit $B | 0.92 $B | 1.14 $B | -19.28% |
Operating Income $M | 362.00 $M | 260.00 $M | +39.23% |
Net Income $M | 182.00 $M | 61.00 $M | +198.36% |
EPS (Diluted) $ | 0.52 $ | 0.17 $ | +205.88% |
SG&A Expense $M | 559.00 $M | 538.00 $M | +3.90% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
TSN reported strong financial performance in Q2 FY2026 with significant increases in net income and EPS, driven by improved gross and operating margins.
TSN (Tyson Foods) reported a sharp Q1 FY2026 earnings decline, with net income falling 76.3% year-over-year to $85M despite a 5.1% revenue increase to $14.31B, as surging input costs compressed gross margins from 8.0% to 5.6%.
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