Dateline: SPRINGDALE, Ark., Nov 10, 2025 – Tyson Foods (TSN) forecasts fiscal 2026 revenue to rise 2%-4%, beating analyst estimates as chicken demand offsets beef business losses.
The stronger-than-expected guidance signals a strategic shift toward poultry as consumers gravitate to cheaper protein options amid persistent food inflation.
Key Takeaways
- Revenue forecast beats analyst estimates of 2.3% growth
- Chicken business strength offsets steep beef segment losses
- Consumer shift to cost-conscious protein choices drives demand
Market Context
Tyson’s forecast exceeds Wall Street’s 2.3% revenue growth projection, highlighting the company’s resilience compared to other food processors struggling with input cost inflation 1. The Springdale, Arkansas-based meat giant has outperformed peers by capitalizing on consumer preference shifts toward more affordable protein sources.
The company’s chicken segment has emerged as a clear winner, with operating profit jumping to 367 million from 244 million in the previous period 8. This performance contrasts sharply with ongoing losses in the beef division, where higher cattle costs continue to pressure margins.
Strategic Shift to Poultry
Tyson’s chicken business is expected to generate adjusted operating income of 1.3 billion to 1.4 billion annually, representing a significant increase from previous guidance 5. The segment’s strong performance reflects consumers’ migration away from expensive beef cuts toward more budget-friendly chicken options.
Operating earnings for fiscal 2025, excluding certain items, are projected to range between 2.1 billion and 2.3 billion, marking a 100 million increase from earlier estimates 3. This upward revision demonstrates management’s confidence in the poultry-driven recovery strategy.
Consumer Behavior Driving Growth
Industry analysts note that increased chicken demand signals shoppers are becoming more cost-conscious as food prices remain elevated 6. Rather than purchasing premium steaks and roasts, consumers are shifting their protein purchases toward chicken products that offer better value.
The trend has proven particularly beneficial for Tyson, which has successfully leveraged its integrated poultry operations to capture market share. The company’s ability to maintain competitive pricing while expanding margins has positioned it favorably against competitors facing similar input cost pressures.
Beef Segment Challenges Persist
While chicken sales surge, Tyson continues to grapple with significant losses in its beef operations. Elevated cattle prices and supply chain disruptions have created persistent headwinds for the segment, offsetting some of the gains from poultry success.
The company’s diversified protein portfolio has nonetheless allowed it to weather these challenges better than pure-play beef processors. Management’s strategic focus on expanding chicken capacity while rightsizing beef operations reflects this market reality.
Forward Outlook
Tyson’s revised guidance suggests the protein shift may be more than a temporary phenomenon driven by inflation concerns. The company’s investment in chicken production capacity and operational efficiency improvements position it to benefit from sustained demand trends.
Food industry experts expect the preference for affordable protein sources to persist even as inflation moderates, given consumers’ heightened price sensitivity developed during the recent inflationary period.
Not investment advice. For informational purposes only.
References
1(Nov 10, 2025). “Tyson Foods Forecasts Annual Revenue Rise as Chicken Demand Offsets Beef Woes”. U.S. News & World Report. Retrieved Nov 10, 2025.
2(Aug 5, 2025). “Tyson Foods Boosts Revenue Forecast as Chicken Sales Rise”. Agriculture.com. Retrieved Nov 10, 2025.
3(Aug 4, 2025). “Tyson raises 2025 outlook as chicken boom offsets beef crash”. Farm Progress. Retrieved Nov 10, 2025.
4(Nov 10, 2025). “Tyson Foods Q4 sales miss estimates on higher legal contingency accruals”. MarketScreener. Retrieved Nov 10, 2025.
5(Aug 5, 2025). “Tyson lifts outlook as chicken sales, margins soar”. The Poultry Site. Retrieved Nov 10, 2025.
6“Tyson says consumers buying chicken over beef, Beyond Meat cuts workforce”. The Cattle Site. Retrieved Nov 10, 2025.
7(Aug 5, 2025). “Tyson Raises 2025 Earnings Guidance as Chicken Demand Offsets Beef Losses”. American Ag Network. Retrieved Nov 10, 2025.
8(Aug 4, 2025). “Chicken Saves Tyson Foods From Surging Beef Costs”. The Wall Street Journal. Retrieved Nov 10, 2025.