Tyson Foods, Inc. (NYSE:TSN) shares rose Monday following the release of its fourth-quarter and fiscal 2025 results, as the food giant delivered year-over-year gains in sales, adjusted operating income, and adjusted earnings per share, signaling progress in its turnaround efforts despite softer GAAP results.
Tyson Foods is a leading global protein company with well-known brands including Tyson, Jimmy Dean, Hillshire Farm, and Ball Park.
The performance underscored steady momentum across Tyson’s diversified protein portfolio, with management highlighting improved operational execution and a stronger financial foundation heading into fiscal 2026.
Also Read: Tyson’s Beef Problems Aren’t Going Away Anytime Soon
Fourth-Quarter Financials
In the fourth quarter, sales reached $13.86 billion, up 2.2% from a year earlier, or 4.8% excluding a $355 million increase in legal contingency accruals.
GAAP operating income dropped 70% to $158 million, while adjusted operating income rose 19% to $608 million. GAAP EPS was 13 cents, down 87%, and adjusted EPS increased 25% to $1.15.
Tyson’s adjusted EPS of $1.15 beat the 83 cents analyst estimate, while sales of $13.86 billion missed expectations of $13.97 billion. The company reported a GAAP operating margin of 1.1% and an adjusted operating margin of 4.3%.
Full-Year Results
For fiscal 2025, sales totaled $54.44 billion, up 2.1% from the prior year, or up 3.3% excluding a $653 million increase in legal contingency accruals recognized as a reduction to sales.
GAAP operating income fell 22% to $1.10 billion, while adjusted operating income rose 26% to $2.29 billion.
GAAP earnings per share declined 41% to $1.33, but adjusted EPS increased 33% to $4.12. The company posted a GAAP operating margin of 2.0% and an adjusted operating margin of 4.1%.
Cash Flow, Debt & Liquidity
Operating cash flow was $2.16 billion, down $435 million from last year, and free cash flow fell $281 million to $1.18 billion.
Tyson repurchased 3.5 million shares for $196 million, reduced total debt by $957 million, and ended the year with liquidity of $3.7 billion.
“We delivered year-over-year growth in sales, adjusted operating income and adjusted earnings per share, reflecting the strength of our multi-protein, multi-channel portfolio,” said Donnie King, President and CEO of Tyson Foods.
Outlook
Looking ahead, Tyson expects fiscal 2026 sales to increase between 2% and 4% to $55.53 billion and $56.62 billion, compared with analyst estimates of $54.73 billion.
The company anticipates adjusted operating income between $2.1 billion and $2.3 billion.
Segment outlooks include an adjusted operating loss of $400 million to $600 million for Beef, adjusted operating income of $150 million to $250 million for Pork, $1.25 billion to $1.5 billion for Chicken, and $950 million to $1.05 billion for Prepared Foods. International operations are expected to post similar results to fiscal 2025.
Tyson projects capital expenditures between $700 million and $1.0 billion, net interest expense of about $390 million, and free cash flow of $0.8 billion to $1.3 billion.
The company expects total liquidity to remain above its $1.0 billion target, along with an adjusted effective tax rate of approximately 25%.
Dividend
Effective November 7, 2025, the Board increased the quarterly dividend to 51 cents per Class A share and 45.9 cents per Class B share, payable December 15, 2025. Tyson anticipates maintaining this dividend level through fiscal 2026.
Price Action: TSN shares were trading higher by 4.40% to $55.00 premarket at last check Monday.
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