Smithfield Foods reported second-quarter fiscal 2026 operating profit of $290 million, up 11.6% from $260 million a year earlier, as net sales slipped 2.3% to $3.7 billion from $3.786 billion.
Net income climbed 26.6% to $238 million from $188 million, while diluted earnings rose to $0.60 per share from $0.48. Adjusted diluted earnings increased to $0.62 from $0.55.
For the first six months of fiscal 2026, operating profit rose 7.1% to a record $623 million from $582 million, even as net sales edged down 0.8% to $7.5 billion from $7.558 billion. First-half net income increased 17.6% to $484 million from $412 million, and diluted earnings improved to $1.23 per share from $1.05.
Cash flow also strengthened. Net cash from operating activities totaled $204 million in the first half, up $96 million from $108 million a year earlier.
By segment, packaged meats second-quarter sales fell 2.7% to $2.023 billion from $2.079 billion, and operating profit dropped 12.0% to $265 million from $301 million. Fresh pork sales declined 3.5% to $2.008 billion from $2.080 billion, with operating profit down to $14 million from $35 million. Hog production sales fell 8.2% to $772 million from $840 million, but operating profit jumped to $64 million from $22 million.
In the first half, packaged meats sales rose 1.7% to $4.172 billion from $4.103 billion, while operating profit fell 4.7% to $540 million from $567 million. Fresh pork sales dropped 2.3% to $4.020 billion from $4.114 billion, and operating profit declined 21.0% to $92 million from $117 million. Hog production sales decreased 13.1% to $1.541 billion from $1.772 billion, but operating profit climbed to $68 million from $23 million.
Smithfield ended the quarter with $1.35 billion in cash and cash equivalents and $2.298 billion of availability under committed credit facilities, for total available liquidity of $3.648 billion. Net debt to adjusted EBITDA was 0.4x on a trailing 12-month basis.
The company trimmed its full-year fiscal 2026 outlook. Total company sales are now expected to be roughly flat versus fiscal 2025, compared with prior guidance for low-single-digit growth. Full-year adjusted operating profit is now projected at $1.225 billion to $1.375 billion, down from $1.325 billion to $1.475 billion.
By segment, full-year adjusted operating profit guidance was cut to: Packaged meats: $1.075 billion to $1.150 billion, from $1.100 billion to $1.200 billion Fresh pork: $180 million to $240 million, from $200 million to $260 million * Hog production: $75 million to $125 million, from $150 million to $200 million
Capital spending is still expected to be $350 million to $450 million, and the tax rate outlook remains 22.5% to 24.5%. Following these announcements, the company's shares moved -1.96%, and are now trading at a price of $23.96. Check out the company's full 8-K submission here.
