Executive Summary

Q3 2025 delivered revenue of $13.88B (+4.0% y/y), Adjusted Operating Income of $505M (+3% y/y) and Adjusted EPS of $0.91 (+5% y/y), while GAAP EPS fell to $0.17 due to a $343M non-deductible goodwill impairment in Beef .
Results beat S&P Global consensus on both Adjusted EPS ($0.91 vs $0.78*) and revenue ($13.88B vs $13.56B*); this marks the fifth consecutive quarter of y/y growth across sales, AOI and Adjusted EPS *.
Guidance raised: Total company Adjusted OI range to $2.1–$2.3B (prior $1.9–$2.3B), sales up 2–3% (prior flat to +1%), Chicken AOI to $1.3–$1.4B (prior $1.0–$1.3B); FCF narrowed to $1.0–$1.3B and CapEx “at or below” $1.0B .
Beef headwinds intensified (Adjusted OI loss guided to $(475)–$(375)M) amid tight cattle supply; management highlighted heifer retention starting and herd rebuild tailwinds beyond 2026; Board declared $0.50/$0.45 quarterly dividend and expanded buyback authorization by 43M shares (≈50M total) .

What Went Well and What Went Wrong

What Went Well

Prepared Foods: Adjusted OI up 21% y/y; margin +150 bps on innovation, distribution gains, and operational execution (fill rates >98%, highest since 2019) .
Chicken: Third straight quarter of volume growth; value‑added volume grew ~3.5x total segment volume; Adjusted OI +12% y/y on plant efficiencies and favorable mix .
Multi‑protein diversification and execution contributed to AOI and EPS growth despite Beef pressure; management reiterated “fifth consecutive quarter” of y/y growth and stronger balance sheet (net leverage down to 2.1x) .

What Went Wrong

Beef: GAAP OI fell to $(494)M (‑8.8% margin) and Adjusted OI to $(151)M due to compressed spreads from higher cattle costs; recorded $343M non‑deductible goodwill impairment .
Corporate tax rate spiked (64.5%) due to non‑deductible impairment; GAAP EPS fell 69% y/y to $0.17 .
Raw material inflation: ~$60M unplanned cost increase in Prepared Foods during Q3; management offset via execution and mix but narrowed segment AOI guidance amid seasonal raw material peaks .

Financial Results

Headline financials vs prior periods

Metric	Q1 2025	Q2 2025	Q3 2025
Revenues ($USD Billions)	$13.62	$13.07	$13.88
GAAP EPS ($)	$1.01	$0.02	$0.17
Adjusted EPS ($)	$1.14	$0.92	$0.91
Gross Profit Margin (%)	8.0%	4.6%	8.2%
GAAP Operating Margin (%)	4.3%	0.8%	1.9%
Adjusted Operating Margin (%)	4.8%	3.8%	3.6%

Year-over-year comparison (Q3 y/y)

Metric	Q3 2024	Q3 2025
Revenues ($USD Billions)	$13.35	$13.88
GAAP Operating Income ($USD Millions)	$341	$260
Adjusted Operating Income ($USD Millions)	$491	$505
GAAP EPS ($)	$0.54	$0.17
Adjusted EPS ($)	$0.87	$0.91
GAAP Operating Margin (%)	2.6%	1.9%
Adjusted Operating Margin (%)	3.7%	3.6%

Segment breakdown (Q3 2025 vs Q3 2024)

Segment	Sales Q3 2024 ($MM)	Sales Q3 2025 ($MM)	Adj OI Q3 2024 ($MM)	Adj OI Margin Q3 2024	Adj OI Q3 2025 ($MM)	Adj OI Margin Q3 2025
Beef	$5,241	$5,603	$(69)	(1.3%)	$(151)	(2.7%)
Pork	$1,462	$1,506	$22	1.5%	$36	2.4%
Chicken	$4,076	$4,220	$307	7.5%	$345	8.2%
Prepared Foods	$2,432	$2,515	$203	8.3%	$246	9.8%
International/Other	$582	$557	$28	n/a	$29	n/a
Total	$13,353	$13,884	$491	3.7%	$505	3.6%

Non-GAAP adjustments (Q3 2025)

Item	EPS Impact ($)	Operating Income Impact ($MM)
Goodwill impairment (Beef)	$0.96	$343
Network optimization plan (incl. storage sale gain)	$(0.18)	$(83)
Brand discontinuation	$0.01	$5
Netherlands facility	$(0.04)	$(14)
China plant relocation remuneration	$(0.01)	$(6)
Adjusted OI (non-GAAP)	$0.91	$505

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Liquidity ($USD Billions)	$4.5	$3.2	$4.0
Free Cash Flow YTD ($USD Billions)	$0.76	$0.38	$0.93
CapEx YTD ($USD Billions)	$0.27	$0.46	$0.69
Net debt / Adjusted EBITDA (TTM)	2.3x	2.3x	2.1x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Company Adjusted Operating Income	FY2025	$1.9–$2.3B	$2.1–$2.3B	Raised midpoint; narrowed
Revenues	FY2025	Flat to +1% y/y	+2% to +3% y/y	Raised
CapEx	FY2025	$1.0–$1.2B	At or below $1.0B	Lowered
Free Cash Flow	FY2025	$1.0–$1.6B	$1.0–$1.3B	Narrowed lower end
Interest Expense	FY2025	≈$375M	≈$375M	Maintained
Adjusted Tax Rate	FY2025	≈25%	≈25%	Maintained
Beef Adjusted OI	FY2025	$(0.4)B to $(0.2)B	$(475)M to $(375)M	Widened loss; narrowed range
Pork Adjusted OI	FY2025	$0.1B to $0.2B	$175M to $200M	Tightened to high end
Chicken Adjusted OI	FY2025	$1.0B to $1.3B	$1.3B to $1.4B	Raised
Prepared Foods Adjusted OI	FY2025	$0.9B to $1.1B	$925M to $1.0B	Narrowed mid‑lower
International/Other Adjusted OI	FY2025	Improved results (no range)	≈$125M (improved)	More specific; improved
Dividend	Q3 2025	Prior regular quarterly cadence	$0.50 (Class A), $0.45 (Class B) declared (payable Dec 15, 2025)	Affirmed dividend
Share Repurchase Authorization	Q3 2025	Prior authorization outstanding	+43M shares; total ≈50M authorized	Increased authorization

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2)	Current Period (Q3)	Trend
AI/technology initiatives	Tyson Ventures pursuing enabling technologies; brand/innovation pipeline expanding (Q2 prepared remarks)	Demo Day spotlighted 11 AI startups; 6 selected to advance use cases in branding/R&D/automation	Increasing focus; building pipeline
Supply chain/logistics optimization	Plan to sell multiple conventional cold storages; transition to automated facilities (~$200M annual savings over 3–5 years)	Continued emphasis on operational excellence and data/digital tools; >98% fill rates in Prepared Foods	Execution improving; savings opportunity intact
Tariffs/macro	Guidance incorporated potential tariff impacts; contingency plans in place	Acknowledged timing lags in tariff impacts on pricing; outlook accounts for tariffs and consumer selectivity	Managed risk; watch timing effects
Beef cycle/heifer retention	“If not at the bottom, we can see it”; heifers on feed down; rebuild expected post-2026	Heifer retention beginning; herd rebuilding tailwinds likely 2026–2028; impairment recognized amid tighter spreads	Near‑term pressure; long‑term tailwind
Product performance/value‑added	Q2: Best Chicken Q2 AOI in 9 years; retail value‑added growth; innovation wins (Jimmy Dean)	Tyson branded frozen chicken +10% volume; snacking +20%; fresh chicken volume +2.3%	Strengthening across brands
International segment	Marked improvement on operational fundamentals; strongest quarter on record; macro risks acknowledged	“Performed well this year”; ~$125M Adj OI outlook	Sustained improvement; monitoring macro

Management Commentary

“Sales, adjusted operating income and adjusted earnings per share all grew year over year, marking our fifth consecutive quarter of year over year growth… Our strategy is working” — Donnie King, CEO .
“We are raising the midpoint and narrowing the range for total company adjusted operating income… $2.1–$2.3 billion” — Curt Calaway, CFO .
“Cattle availability at record lows… heifer retention has begun… herd rebuilding will begin in earnest in 2026” — Donnie King/Brady Stewart .
“Prepared Foods… best quarter ever… roughly $60 million of unplanned raw material increase in the quarter” — Donnie King .
“We ended the quarter with $4.0 billion in liquidity and net leverage at 2.1x… restarted open market share repurchases” — Curt Calaway .

Q&A Highlights

Beef outlook and impairment: Management detailed prolonged cycle dynamics, rising carrying value with higher cattle costs, and signs of heifer retention; impairment reflects updated fair value cushion and market realities .
Prepared Foods pricing/elasticity: Strong brand equity and data-driven pricing; protein categories show lower elasticity; continued innovation supports mix lift .
Chicken investments: ~$100M incremental spend, weighted to H2, focused on brand support, quality, and digital; despite spend, expectations remain at/above upper half of guidance .
CapEx/FCF reconciliation: CapEx trending under $700M YTD and at the low end; FCF narrowed primarily on working capital needs, including higher cattle costs .
Tariffs: No change to view on global protein consumption; contingency planning minimizes disruptions; outlook embeds tariff impacts .

Estimates Context

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Actual ($USD Billions)	$13.62	$13.07	$13.88
Revenue Consensus ($USD Billions)	$13.46*	$13.14*	$13.56*
Surprise ($USD Billions)	+$0.16*	−$0.07*	+$0.32*
Adjusted EPS Actual ($)	$1.14	$0.92	$0.91
EPS Consensus ($)	$0.88*	$0.82*	$0.78*
Surprise ($)	+$0.26*	+$0.10*	+$0.13*

Values retrieved from S&P Global.*

Implications: Q3 delivered a clean beat on revenue and Adjusted EPS, continuing estimate‑beat momentum from Q1–Q2; expect upward revisions to Chicken and Prepared Foods AOI and consolidated FY AOI, with Beef estimates likely to drift lower given widened loss range .

Key Takeaways for Investors

Mix-led and execution-driven strength in Chicken and Prepared Foods offsets Beef cycle headwinds; the raised FY AOI and revenue outlook should support estimate revisions and sentiment .
Beef impairment and widened loss guidance reset expectations; management sees early-cycle rebuild signals, but profitability normalization is a multi‑year story (2026–2028) .
FCF/CapEx discipline intact (CapEx ≤$1B; FCF $1.0–$1.3B); liquidity $4.0B and leverage trending toward 2x; buyback authorization expanded, offering capital return optionality .
Prepared Foods operational systems and innovation pipeline are durable drivers; margin trajectory improving despite raw input volatility .
Chicken momentum (value‑added/branded) remains robust even with elevated brand investments; strategic customer alignments stabilize earnings .
Watch tariff timing impacts on pricing and working capital, plus continued pork supply normalization; segment guidance suggests steady Pork improvement .
Near‑term trading: Expect positive bias on raised guidance and capital return news balanced by Beef impairment headlines; medium‑term thesis hinges on continued execution in branded value‑added, logistics savings, and eventual Beef cycle recovery .

TYSON FOODS, INC. (TSN)·Q3 2025 Earnings Summary