A maker of beef, pork, chicken, and prepared foods, Tyson Foods processes live cattle and hogs into cuts and case-ready products and makes branded frozen and refrigerated foods under names like Jimmy Dean, Hillshire Farm, and Ball Park. Its chicken business is vertically integrated, from breeding stock through contract farmers and feed mills. The company employs a large global workforce and sells in dozens of countries.
Q3 FY2026 operating income rose 39% to $362M as the prior-year Beef goodwill charge did not repeat
The Beef 's loss narrowed sharply from a year ago. was flat at $13.9B while rose 39% to $362M and was $0.52, with the gain driven by the absence of a $343M non-cash Beef that hit Q3 last year, partly offset by $98M in legal accruals. Tyson is profitable but still carrying compressed protein margins and open legal costs.
Key takeaways
rose 39% to $362M, primarily because the $343M Beef recorded in Q3 FY2025 did not repeat, partially offset by $98M in this quarter.
Beef loss narrowed to $142M from $459M a year earlier, though margins stayed compressed by a $525M increase in cattle costs and a $40M .
was flat at $13.9B as a 3.4% price increase offset a 2.8% volume decline, with Beef volume down 15.9% on reduced cattle availability.
Section summaries
Management's Discussion and Analysis
Tyson's Q3 FY2026 operating income rose 39% to $362M despite flat sales, driven by improved Beef/Pork results and lapping a prior-year goodwill impairment.
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Total sales were flat at $13.9B as a 3.4% price increase offset a 2.8% volume decline, with Beef volume down 15.9% due to reduced cattle availability.
increased $102M to $362M, primarily due to the absence of a $343M Beef from Q3 FY2025, partially offset by $98M in legal contingency accruals.
Chicken and Prepared Foods profits fell 18% and 20% respectively, pressured by higher freight, raw material costs, and increased marketing spend.
The Oklahoma poultry-litter case settled in July 2026 for about $19M total from Tyson, replacing the earlier $10M remediation fund and pending appeal.
decreased $151M to $1.47B in the quarter on higher legal contingency payments and tax settlements; stood at $4.0B.
What changed
Beef in Q3 FY2026 narrowed to a $142M loss from $459M a year earlier and from $240M in Q2 FY2026, answering the prior flag to see if the loss narrows as cattle costs persist.
The Oklahoma poultry-litter appeal and remediation question closed via a July 2026 settlement of ~$19M with vacatur of the December 2025 judgment sought, ending the flagged exposure beyond the $10M already funded.
Q3 fell to $1.47B, down $151M , continuing the flagged pattern of cash pressure from legal and tax payments after H1 fell slightly to $829M.
Network optimization plan total expected charges rose to $241M this quarter from $264M estimated in Q2 FY2026, a revision downward in the flagged total.
No new risk factors were added versus the FY2025 10-K; the company stated risks have not changed in any material respect.
What to watch
Beef in Q4 FY2026 to see if the loss narrows further as cattle costs remain elevated
Total charges under the network optimization plan as the estimate now stands at $241M
Q4 after nine-month pressure from legal contingency payments and tax settlements
Any further risk on the $13.5B balance if Chicken or Prepared Foods earnings weaken
Beef loss narrowed to -$142M from -$459M, but margins remained compressed by a $525M surge in cattle costs and a $40M .
Chicken and Prepared Foods profits fell 18% and 20% respectively, pressured by higher freight, raw material costs, and increased marketing spend.
Liquidity remained strong at $4.0B, though decreased $151M to $1.47B due to higher legal contingency payments and tax settlements.
The company expects $0.7-$0.9B in FY2026 and net of ~$365M, while continuing a multi-year network optimization plan with $241M in total expected charges.
Quantitative and Qualitative Disclosures About Market Risk
Commodity, interest-rate, and currency risks are managed with derivatives; a 10% adverse move in commodity prices would shift fair values up to $23M.
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A hypothetical 10% change in commodity prices would affect open livestock and grain positions by up to $23M for soybean meal and $20M for corn as of June 27, 2026.
Livestock sensitivity fell sharply from the prior year: live cattle dropped from $18M to $12M and lean hogs from $46M to $10M under the same 10% price scenario.
Variable-rate debt of $56M carries a weighted average rate of 3.9%; a 10% rate increase would raise annualized by less than $1M.
Fixed-rate debt of $7,950M at a 4.9% weighted average rate would change in by approximately $233M given a hypothetical 10% decline in interest rates.
A 10% adverse move in foreign exchange rates on forward and option contracts would impact pretax income by $29M, up from $21M in the prior year.
The company uses forward contracts and options to hedge commodity and currency exposures, generally not hedging anticipated transactions beyond 18 months.
Oklahoma environmental case settled for ~$19M; other matters not expected to be material.
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The Oklahoma AG sued Tyson and others in 2005 alleging poultry-litter pollution of the Illinois River Watershed.
A December 2025 judgment imposed a ~$0.2M civil penalty, litter-management restrictions, and a $10M remediation fund on defendants.
On July 10, 2026, Tyson and other defendants agreed to settle: Tyson will pay ~$18M to an environmental relief fund, ~$0.2M to a penalty fund, and ~$1M to an auditor fund.
The settlement requires the parties to seek vacatur of the December 2025 judgment and dismissal with prejudice.
The company states other lawsuits, investigations, and claims are not expected to have a material adverse effect on consolidated results or financial position.
Our business is subject to a variety of risks and uncertainties. These risks are described in this Quarterly Report on Form 10-Q and elsewhere in our other filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 27, 2…
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Our business is subject to a variety of risks and uncertainties. These risks are described in this Quarterly Report on Form 10-Q and elsewhere in our other filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 27, 2025. The risks identified in such reports have not changed in any material respect.
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