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Get filing alertsSmithfield cuts FY2026 profit guidance despite record H1 results on macro headwinds
Filed August 11, 2026 · Period ending August 11, 2026 · ~1 min read
Key Changes
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high
FY2026 adjusted operating profit guidance lowered to $1,225–$1,375M from $1,325–$1,475M; sales now expected flat vs. prior-year (previously up low-single-digits) due to cautious consumer spending and higher input costs.
Exhibit 99.1 view on EDGAR → -
high
Sales decline reflects non-recurring joint-venture sales and earlier Easter holiday.
Exhibit 99.1 view on EDGAR → -
high
H1 FY2026 delivered record adjusted operating profit of $638M (up 2.3%) on sales of $7.5B (down 0.8%); adjusted diluted EPS $1.25 vs. $1.13 prior year; operating cash flow improved $96M to $204M.
Exhibit 99.1 view on EDGAR → -
medium
Board declared quarterly dividend of $0.3125/share (payable Aug 27 to holders of record Aug 13); company expects to maintain rate for remaining FY2026 quarters, yielding $1.25/share annually.
Exhibit 99.1 view on EDGAR → -
medium
Available liquidity of $3.6B as of June 28, 2026 ($1.4B cash, $2.3B credit availability); net debt to adjusted EBITDA ratio of 0.4x reflects strong balance sheet.
Exhibit 99.1 view on EDGAR →
Summary
Smithfield Foods reported strong first-half fiscal 2026 results but lowered full-year guidance in response to macroeconomic pressures. The company delivered record H1 adjusted operating profit of $638 million (up 2.3% year-over-year) and adjusted diluted EPS of $1.25, up from $1.13 in the prior-year period.
Second-quarter results showed operating profit growth of 11.6% to $290 million despite a 2.3% sales decline driven by non-recurring joint-venture sales in the prior year and an earlier Easter holiday. However, management cited cautious consumer spending and higher input costs as reasons to reduce FY2026 adjusted operating profit guidance to $1,225–$1,375 million from $1,325–$1,475 million.
Sales are now expected to be roughly flat versus FY2025, down from prior expectations of low-single-digit growth. All three operating segments—Packaged Meats, Fresh Pork, and Hog Production—saw guidance reductions, with Hog Production taking the largest cut (to $75–$125 million from $150–$200 million). The company maintains a strong balance sheet with $3.6 billion in available liquidity and a net debt to adjusted EBITDA ratio of 0.4x. The Board declared a quarterly dividend of $0.3125 per share, consistent with the prior rate, signaling confidence in cash generation despite the near-term headwinds. Investors should monitor whether the company can execute its action plan to offset macro pressures and whether consumer spending stabilizes in the second half.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales of $3.7 billion, down 2.3% from the second quarter of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the second quarter of 2025 as well as the earlier Easter holiday this year •Operating profit of $290 million, up 11.6% from the second quarter of 2025; record second quarter adjusted operating profit(1) of $300 million, up slightly from the second quarter of 2025 •Operating profit margin of 7.8%, compared to 6.9% in the second quarter of 2025; Adjusted operating profit margin(1) of 8.1%, compared to 7.9% in the second quarter of 2025 • ... Net income(2) of $238 million, up 26.6% from the second quarter of 2025; Adjusted net income(1) (2) of $245 million, up 13.2% from the second quarter of 2025 •Diluted and adjusted diluted earnings(1) (2) of $0.60 and $0.62 per share, respectively; compared to $0.48 and $0.55 per share, respectively, in the second quarter of 2025
Smithfield reported Q2 FY2026 net sales of $3.7 billion (down 2.3% year-over-year) and operating profit of $290 million (up 11.6%), with adjusted operating profit of $300 million. Net income rose 26.6% to $238 million, yielding diluted EPS of $0.60 (adjusted $0.62), up from $0.48 ($0.55 adjusted) in Q2 FY2025. The sales decline reflects non-recurring joint-venture sales in the prior year and an earlier Easter holiday.
Added in current filing · view on EDGAR →
Net sales of $7.5 billion, down 0.8% from the first half of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the first half of 2025 •Operating profit of $623 million, up 7.1% from the first half of 2025; Record first half adjusted operating profit(1) of $638 million, up 2.3% from the first half of 2025 •Operating profit margin of 8.3%, compared to 7.7% in the first half of 2025; Adjusted operating profit margin(1) of 8.5%, compared to 8.3% in the first half of 2025 • ... Net income(2) of $484 million, up 17.6% from the first half of 2025; Adjusted net income(1) (2) of $496 million, up 11.8% from the first half of 2025 •Diluted and adjusted diluted earnings(1) (2) of $1.23 and $1.25 per share, respectively; compared to $1.05 and $1.13 per share, respectively, in the first half of 2025 •Net cash flows from operating activities of $204 million for the first half of 2026 increased $96 million from the first half of 2025
For the first half of FY2026, Smithfield delivered record adjusted operating profit of $638 million (up 2.3%) on net sales of $7.5 billion (down 0.8%). Net income rose 17.6% to $484 million, yielding diluted EPS of $1.23 (adjusted $1.25), up from $1.05 ($1.13 adjusted) in H1 FY2025. Operating cash flow improved $96 million to $204 million.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 12, 2026 · How we verify