11:18 AM EST, 11/10/2025 (MT Newswires) -- Tyson Foods' ( TSN ) fiscal fourth-quarter profit unexpectedly rose year-over-year even as sales grew less than projected amid volume headwinds.

The processed meat producer's adjusted earnings increased to $1.15 per share for the quarter ended Sept. 27 from $0.92 a year earlier, compared with the FactSet-polled consensus of $0.84. Sales climbed 2.2% to $13.86 billion, below analysts' estimate of $14.11 billion.

Volume fell 1.6% from the year-ago quarter, while prices rose 6.4%, Tyson said. Chicken was the only division that logged annual volume gains.

Sales were also weighed down by a $355 million increase in legal contingency accruals, excluding which, revenue would have risen 4.8%, the company said. The accruals were recognized as a reduction to sales.

Beef revenue rose to $5.49 billion from $5.26 billion the prior year, while chicken increased to $4.41 billion from $4.25 billion. Pork fell to $1.41 billion from $1.44 billion.

The chicken segment's adjusted operating income advanced to $457 million in the fourth quarter from $356 million, "thanks to higher volumes, better operational execution, and lower feed costs," Chief Executive Donnie King said during an earnings call, according to a FactSet transcript.

Beef's adjusted operating income was negative $94 million.

"As anticipated, the beef segment remains our only soft spot," King told analysts. "Cattle supplies are at record lows due to drought potential, herd rebuilding and the impact of new world screwworm in Mexico."

Tyson's shares rose 2.5% in Monday trade. The stock is down 6% so far this year.

Tyson is expecting fiscal 2026 sales to grow 2% to 4%. Analysts polled by FactSet expect $56.21 billion, up from the previous year's $54.44 billion.

"We expect cattle supplies to remain tight as we move into 2026," King said. "During this period, chicken is likely to benefit most from changing consumer preferences both at retail and in foodservice."

Tyson expects consolidated adjusted operating income of $2.1 billion to $2.3 billion in fiscal 2026, compared with the prior year's $2.29 billion.

"While consumers remain cautious and selective with their spending, we continue to expand our market share in both volume and dollars," King said. "Protein remains a top priority for shoppers despite rising prices."

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