Tyson Foods Reports Falling Q4 Income as It Sets Aside Money for Legal Concerns

Tyson Foods chicken breasts on sale at a grocery store (Shutterstock)

Tyson Foods Inc. of Springdale (NYSE: TSN) on Monday reported falling income in its fiscal fourth quarter as the company set aside money for legal contingencies.

Net income was $47 million, down from $357 million a year ago. Per share, earnings came to 13 cents. Adjusted earnings were $1.15 per share.

The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 85 cents per share.

Revenue in the period was $13.86 billion, up 2.14% from $13.57 billion in the same quarter a year ago.

For the full fiscal year, Tyson Foods reported income of $474 million, down from $800 million. Revenue was $54.4 billion, up 2.1% from $53.3 billion in 2024.

The company said it expects revenue to increase between 2% and 4% in fiscal 2026.

“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,” Tyson Foods CEO Donnie King said. “This fiscal year’s progress demonstrates our commitment to operational excellence while meeting the evolving needs of our customers and consumers. As a world-class food company and recognized leader in protein, we remain focused on continuously improving the controllable aspects of our business and delivering shareholder value.”

Tyson Foods reported $355 million in quarterly legal contingencies accruals and $653 million for the year. It recently agreed to pay $85 million to settle a class-action lawsuit over over alleged pork price-fixing, and another $55 million as part of settlement with Cargill over beef price-fixing claims.

The company also faces federal scrutiny over beef prices. A White House news release announcing a Department of Justice antitrust investigation named Tyson Foods, Cargill, JBS and National Beef.

Results by Segment

Tyson Foods’ individual protein divisions were a mixed bag, led by the struggles in the beef category. The beef segment reported quarterly sales of $3.5 billion down from $5.3 billion with operating income of a negative $319 million, down from $71 million.

For fiscal year 2025, beef had sales of $21.6 billion, up from $20.5 billion but a loss of $1.1 billion in operating income, down from a loss of $381 million in 2024. The beef segment may improve marginally in the coming year as the company projected it would have a fiscal operating loss between $400 million and $600 million in 2026.

The chicken segment reported quarterly sales of $4.4 billion, up from $4.3 billion, and operating income of $447 million, up from $409 million. For the fiscal year, sales were $16.8 billion, up from $16.4 billion, and operating income was $1.4 billion, up from $988 million.

The prepared foods segment reported quarterly sales of $2.55 billion, up from $2.47 billion, and operating income of $143 million, down from $203 million. For the year, sales were $9.9 billion, up from $9.85 billion, and operating income was $898 million, up from $879 million.

The pork segment reported quarterly sales of $1.41 billion, down from $1.44 billion, and operating income of a negative $99 million, down from a negative $16 million. For the year, sales were $5.8  billion, down from $5.9 billion, and operating income was a loss of $199 million, down from negative $40 million.

The international segment had quarterly sales of $584 million, down from $609 million, and operating income of negative $14 million. For the year, sales were $2.3 billion, down from $2.35 billion, and operating income was $107 million, up from a negative $37 million.

Shares of the company climbed more than 1% Monday morning to $53.42. Over the past 12 months, shares were down more than 10%.