Tyson Foods has raised its full-year profit guidance after delivering stronger-than-expected earnings in its second quarter, despite a decline in volumes and ongoing pressure in its beef division.

The US meat giant posted adjusted earnings of 87 cents, or around 64p, per share for the quarter, ahead of analyst expectations of 76 cents, or 56p. However, this was down from 92 cents, or 68p, a year earlier.

Sales rose 4.4 per cent year on year to $13.65bn (£10.1bn), supported by higher average prices across the business. However, revenue came in below forecasts of $13.8bn (£10.2bn), while total volumes fell 2.3 per cent.

Gross profit increased to $962m (£711m), up from $600m (£443m) in the same period last year. Adjusted operating income slipped 3 per cent to $497m (£367m), while adjusted operating margin narrowed by 20 basis points to 3.6 per cent.

The performance was mixed across Tyson’s main protein categories. Beef sales were broadly flat at $5.21bn (£3.85bn), compared with $5.2bn (£3.84bn) a year earlier, as an 11.5 per cent rise in average prices offset a 13.1 per cent fall in volumes.

Pork delivered stronger growth, with sales rising to $1.58bn (£1.17bn) from $1.24bn (£919m), driven by higher volumes and prices.

Chicken sales increased to $4.29bn (£3.17bn), with volumes up 1.7 per cent and average prices rising 1.8 per cent. Prepared Foods sales also improved, climbing to $2.51bn (£1.86bn), helped by a 4.4 per cent increase in average prices.

The group ended the quarter with $500m (£370m) in cash and cash equivalents, long-term debt of $7.94bn (£5.87bn), and total shareholders’ equity of $18.2bn (£13.45bn).

Cash from operating activities reached $829m (£613m) for the first six months of the year, while adjusted free cash flow stood at $432m (£319m).

Tyson said it had liquidity of $3.7bn (£2.73bn) at the end of the period and expects this to remain above its minimum $1bn (£739m) target during the financial year.

The company now expects adjusted operating income for fiscal 2026 to reach between $2.2bn and $2.4bn (£1.63bn to £1.77bn), up from its previous guidance of $2.1bn to $2.3bn (£1.55bn to £1.7bn). Total revenue is forecast to grow by between 2 and 4 per cent.

The upgraded outlook is being supported by a stronger performance in chicken, where Tyson now expects adjusted operating income of between $1.9bn and $2.05bn (£1.4bn to £1.52bn), compared with its previous forecast of $1.65bn to $1.9bn (£1.22bn to £1.4bn).

However, the beef division remains under pressure. Tyson now expects the segment to post an adjusted operating loss of between $350m and $500m (£259m to £370m), compared with previous guidance of a $250m to $500m (£185m to £370m) loss.

The company expects adjusted operating income of $250m to $300m (£185m to £222m) from pork, $1.25bn to $1.35bn (£924m to £998m) from Prepared Foods, and $150m to $200m (£111m to £148m) from its International and Other division.

Tyson has also forecast capital expenditure of between $700m and $1bn (£517m to £739m) for the year, focused on profit-improvement initiatives, maintenance and repair projects.

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