Smithfield Foods Q3 sales miss on lower pork commodity markets
SFD•Smithfield Foods reported fiscal third-quarter sales of $3.40 billion, below the $3.69 billion consensus, as sales fell 8.3% year over year. It expects fiscal 2026 sales to decline by low-single digits and adjusted operating profit of $900 million to $1 billion.
1. Quarterly results
Smithfield Foods’ fiscal third-quarter sales fell 8.3% year over year to $3.40 billion, missing the $3.69 billion analyst consensus. Operating income was $127 million, with a 3.70% margin. Adjusted earnings per share and operating profit declined from the prior year as commodity markets softened. Shares fell about 4% in premarket trading.
2. Outlook and acquisition
The company expects fiscal 2026 sales to decline by low-single digits from fiscal 2025 and adjusted operating profit of $900 million to $1 billion. It expects Packaged Meats segment adjusted operating profit of $1.09 billion to $1.14 billion. Higher third-quarter operating profit and margin in Packaged Meats offset declines elsewhere, while lower pork commodity markets challenged upstream segments. Smithfield completed its acquisition of Nathan’s Famous, bolstering its packaged meats brand portfolio.
