Tyson Foods (TSN) has lowered its fiscal 2026 growth outlook due to challenging market conditions, cutting revenue growth guidance from 2.5%-3.5% to 1.5%-2.0% and adjusted operating income guidance from $2.1 billion-$2.3 billion to $1.85 billion-$2.05 billion. This announcement was made on September 3, 2023, amid intense beef margin pressures and a severe shortage of cattle in the U.S. The company, valued at approximately $18 billion, is also facing increased competition from imported beef, which could push prices down by about 25%.
Analysts are now revising their earnings estimates downward, with the current quarter’s EPS forecast dropping from $1.21 to $0.99 and the current-year estimate down from $4.14 to $3.82. Additionally, the company is restructuring its Beef network to decrease costs, but these benefits are not expected until fiscal 2027.
Investors should be cautious as the stock is trading near 52-week lows. With the recent guidance cuts and historically tight cattle supply, analysts expect further downside in the stock’s performance heading into the end of the year.
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