Smithfield Foods (SFD) Q3 2026 earnings summary

Executive summary

• Q3 sales were $3.437B, down 8.3% YoY; adjusted operating profit fell to $145M from $310M as weaker upstream results offset Packaged Meats growth.

• Packaged Meats operating profit rose to $230M, with margin expanding to 11.6%; the segment remains on track for a fifth consecutive year above $1B in operating profit.

• Nathan’s Famous acquisition closed October 26, 2026; a long-term supply agreement is expected to reduce internally produced hogs by ~900,000 annually.

Financial highlights

• Adjusted operating margin was 4.2% versus 8.3% in Q3 2025; adjusted net income was $103M versus $230M and adjusted diluted EPS was $0.26 versus $0.58.

• Reported operating profit was $127M versus $310M; net income attributable to Smithfield was $89M versus $248M, and diluted EPS was $0.23 versus $0.63.

• 9M sales were $10.937B, down 3.2% YoY; adjusted operating profit was $783M versus $934M.

• 9M operating cash flow was $365M, up $244M YoY; quarter-end cash and cash equivalents were $1.178B.

Outlook and guidance

• FY26 sales are expected to decline low single digits YoY; adjusted operating profit guidance is $900M–$1.000B.

• FY26 adjusted segment operating profit guidance: Packaged Meats $1.090B–$1.140B; Fresh Pork loss of $50M to breakeven; Hog Production loss of $25M to profit of $25M.

• FY26 capex is expected at $350M–$375M, excluding Sioux Falls; effective tax rate guidance is 22.5%–24.5%.

• Outlook includes 53 weeks and ~2 months of Nathan’s Famous results; upstream commodity pressure is expected to continue in Q4, while Packaged Meats outlook is strong.