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Research Alert: Tsn: A Q2 Eps Beat Despite Challenges In Beef

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

TSN delivered a solid Q2 FY 26 (Sep.) EPS beat at $0.87 vs. $0.92 in the prior year, exceeding the consensus estimate by $0.09, while sales rose 4.4% to $13.6B. Chicken emerged as the standout performer with $505M operating income (+38%) and 11.8% margins (+290 bps), marking the 7th consecutive quarter of double-digit margins, reflecting supply chain improvements and chicken's strong value proposition relative to other proteins. The Pork segment recovered dramatically with margins improving to 2.6% from -14.5% due to network optimization and better capacity utilization. Management maintained its FY 26 outlook for adjusted operating income of $2.2-2.4B and total revenue growth of 2-4%. Beef headwinds persisted with -4.6% margins and 13.1% volume declines due to historically tight cattle supplies expected to continue through FY 26, while Prepared Foods maintained strong 13.9% margins. TSN returned $445M to shareholders YTD through dividends and buybacks, demonstrating continued capital allocation discipline.

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