Tyson Foods cuts annual forecast again as cattle pressure worsens

"The revised outlook is primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history," Tyson said in a statement. The adjustment was also due to "the expected impact of lower cattle prices on the value of live cattle inventories," the meatpacker said.

Tyson now expects fiscal 2026 adjusted operating income of $1.85 billion to $2.05 billion, compared with $2.1 billion to $2.3 billion it forecast on August 3. It also expects fiscal 2026 revenue growth of 1.5% to 2.0%, compared with 2.5% to 3.5% expected last month.

Shares were down about 7%. Shares of meatpackers Smithfield Foods SFD.O and Pilgrim's Pride PPC.O were down about 2%.

"We view today’s guidance reduction as further evidence that near-term beef conditions have remained more challenging than previously anticipated despite the company’s aggressive capacity actions," Stephens analyst Pooran Sharma said.