Tyson Cuts Outlook as U.S. Cattle Shortage Hammers Beef Business

Tyson Foods lowered its fiscal 2026 profit and sales forecasts Thursday, citing the historically tight U.S. cattle supply and the pressure that’s applying to meatpackers.  The company now expects adjusted operating income of $1.85 billion to $2.05 billion, down from its previous $2.1 billion-to-$2.3 billion forecast.

Tyson expects its beef operation alone to lose $625 million to $775 million.

Company officials cited volatile cattle prices and what it called one of the most severe cattle shortages in U.S. history.  The announcement provides another indication of how profoundly the cattle cycle is affecting the entire beef supply chain. Ranchers have benefited from historically strong cattle values, but processors face high procurement costs and reduced slaughter supplies.

Tyson announced last month its plans to sell its Pasco, WA beef plant.

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