| Metric | Value ($ M) | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Revenue | 3.7K | 2.6% | 2.3% |
| Total Income | 3.7K | 2.6% | 2.3% |
| Expenditure | 3.2K | 2.1% | 2.0% |
| PBT | 299.00 | 7.4% | 17.7% |
| Net Profit | 238.00 | 3.3% | 26.6% |
| OPM | 7.84% | 0.92pp | 0.97pp |
| NPM | 6.43% | 0.04pp | 1.47pp |
| EPS | 0.61 | 3.2% | 27.1% |
Smithfield Foods Reports Record First Half Fiscal 2026 Operating Profit, Q2 Results Show Profit Growth
11 Aug 2026 · 11 Aug, 5:40 pm
Summary
Smithfield Foods announced its second quarter fiscal 2026 results, reporting net sales of $3.7 billion, a 2.3% decrease year-over-year, primarily due to non-recurring sales and the timing of the Easter holiday. Despite the sales dip, operating profit increased by 11.6% to $290 million, with an improved operating profit margin of 7.8%. For the first half of fiscal 2026, the company achieved record operating profit of $623 million, up 7.1% from the prior year. Management highlighted the strength of their vertically integrated model and disciplined execution in delivering these results amidst a challenging external environment. The company has updated its fiscal year 2026 outlook to reflect ongoing macroeconomic pressures, now expecting total company sales to be roughly flat compared to fiscal year 2025.
Key Highlights
- 1
Smithfield Foods reported net sales of $3.7 billion for the second quarter of fiscal 2026, a decrease of 2.3% from the prior year.
- 2
Operating profit for the second quarter of fiscal 2026 increased by 11.6% to $290 million, with an operating profit margin of 7.8%.
- 3
For the first six months of fiscal 2026, net sales were $7.5 billion, down 0.8% year-over-year, while operating profit rose 7.1% to $623 million.
- 4
Net income for the second quarter of fiscal 2026 was $238 million, up 26.6% compared to the second quarter of fiscal 2025.
- 5
Adjusted diluted earnings per share for the second quarter of fiscal 2026 were $0.62, compared to $0.55 in the prior year.
- 6
The company reported a strong balance sheet with $3,648 million of available liquidity and a net debt to adjusted EBITDA ratio of 0.4x as of June 28, 2026.
- 7
The fiscal year 2026 outlook was updated to reflect macroeconomic challenges, with total company sales expected to be roughly flat compared to fiscal year 2025.
Management Comments
Shane Smith
We delivered record first half operating and adjusted operating profit despite a challenging external environment, demonstrating the strength of our vertically integrated business model, the power of our brands and our team’s disciplined execution. Our results reflect solid performance across the business, continued market share gains in key branded categories and strong operating cash flow generation. While our updated outlook reflects ongoing macroeconomic pressures, these external factors do not change our strategic priorities or our confidence in the business. Supported by a strong balance sheet, substantial liquidity and a clear action plan, we remain focused on driving operational efficiencies, investing in our brands and creating long-term shareholder value.
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