Meat company Tyson Foods (NYSE: TSN) announced better-than-expected revenue in Q1 CY2026, with sales up 4.4% year on year to $13.65 billion. Its non-GAAP profit of $0.87 per share was 11.6% above analysts’ consensus estimates.
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Tyson Foods (TSN) Q1 CY2026 Highlights:
- Revenue: $13.65 billion vs analyst estimates of $13.51 billion (4.4% year-on-year growth, 1% beat)
- Adjusted EPS: $0.87 vs analyst estimates of $0.78 (11.6% beat)
- Adjusted EBITDA: $785 million vs analyst estimates of $793 million (5.7% margin, 1% miss)
- Operating Margin: 3.2%, up from 0.8% in the same quarter last year
- Free Cash Flow was -$258 million compared to -$378 million in the same quarter last year
- Sales Volumes were down 2.3% year on year
- Market Capitalization: $22.42 billion
Company Overview
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $55.71 billion in revenue over the past 12 months, Tyson Foods is one of the most widely recognized consumer staples companies. Its influence over consumers gives it negotiating leverage with distributors, enabling it to pick and choose where it sells its products (a luxury many don’t have). However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. For Tyson Foods to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.
As you can see below, Tyson Foods grew its sales at a weak 1.3% compounded annual growth rate over the last three years as it failed to grow its volumes. We’ll explore what this means in the "Volume Growth" section.
This quarter, Tyson Foods reported modest year-on-year revenue growth of 4.4% but beat Wall Street’s estimates by 1%.
Looking ahead, sell-side analysts expect revenue to grow 2.5% over the next 12 months, similar to its three-year rate. Although this projection implies its newer products will catalyze better top-line performance, it is still below average for the sector.
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Cash Is King
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
Tyson Foods has shown weak cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 2.3%, below what we’d expect for a consumer staples business.
Tyson Foods burned through $258 million of cash in Q1, equivalent to a negative 1.9% margin. The company’s cash burn slowed from $378 million of lost cash in the same quarter last year. These numbers deviate from its longer-term margin, indicating it is a seasonal business that must build up inventory during certain quarters.
Key Takeaways from Tyson Foods’s Q1 Results
It was good to see Tyson Foods beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its gross margin missed and its adjusted operating income fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded up 1.8% to $64.83 immediately following the results.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
