Tyson Beef Struggles While Other Segments Lift Second Quarter Results

Tyson is still reshaping its beef footprint.

The raw meat packer and the slaughterer work in the slaughterhouse. By EmmaStock.png

The raw meat packer and the slaughterer work in the slaughterhouse.

By EmmaStock

Photo by EmmaStock via Adobe Stock

LUBBOCK, TEXAS (RFD NEWS) — Tyson Foods posted stronger second-quarter results overall, but beef remained the company’s weak spot as tight cattle supplies and high livestock costs continued to pressure margins.

Tyson said second-quarter sales rose to $13.65 billion, while it still expects its beef segment to post an adjusted operating loss of $350 million to $500 million in fiscal 2026.

19297661-g.jpeg

Tyson Foods

The company’s better-performing protein businesses helped offset that drag. Tyson expects fiscal 2026 adjusted operating income of $250 million to $300 million in pork, $1.9 billion to $2.05 billion in chicken, and $1.25 billion to $1.35 billion in Prepared Foods.

Management credited chicken and prepared foods with driving momentum and market-share gains in the quarter.

Tyson is also still reshaping its beef footprint. In November, the company said it would close its Lexington, Nebraska, beef plant and convert its Amarillo, Texas, facility to a single full-capacity shift while increasing output at other plants.

Farm-Level Takeaway: Tyson’s second-quarter results showed how hard it is to process beef profitably — even as pork, chicken, and prepared foods perform better.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.
Estate tax relief reduces pressure, but succession planning remains the critical challenge for farm families.
Fewer placements and historically low marketings point to tighter cattle supplies ahead, with Nebraska and Kansas gaining ground as Texas feedlots face supply pressure and the threat of New World Screwworm.
Farmers should anticipate continued upward pressure on farm labor costs and monitor policy changes that may further impact hiring decisions.
Cotton farmers should weigh potential PLC payments against STAX coverage and act before the September 30 deadline.
U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.