Smithfield Foods Profit Falls as Pork Markets Weaken

The Tip Desk · November 8, 2026 · 3 min read

Operating profit was $127 million in the fiscal third quarter, versus $310 million a year earlier, as Fresh Pork swung to an $89 million loss.

Smithfield Foods, Inc. (SFD), an American food company in packaged meats and fresh pork, reported operating profit of $127 million for the fiscal third quarter ended September 27, 2026, down from $310 million a year earlier. Adjusted operating profit was $145 million.

The year-over-year sales decline widened. Consolidated sales were $3.4 billion, down 8.3% from the third quarter of fiscal 2025, after a 2.3% year-over-year decline in the second quarter. Operating profit margin compressed to 3.7% from 8.3%; adjusted operating profit margin was 4.2%. Diluted earnings were $0.23 a share, versus $0.63 a year earlier. Adjusted diluted earnings were $0.26 a share.

President and CEO Shane Smith said third-quarter adjusted operating profit fell within the range the company provided in September, led by Packaged Meats, with upstream segments challenged by lower pork commodity markets.

Packaged Meats remained the profit engine. Segment operating profit was $230 million, compared with $226 million a year earlier, and margin was 11.6%. Packaged Meats sales were $1.98 billion. The company said the segment remains on track for a fifth consecutive year above $1 billion in operating profit in fiscal 2026.

Fresh Pork and Hog Production carried the profit decline. Fresh Pork sales were $1.81 billion, down 17.0% from $2.19 billion a year earlier. The segment swung to an operating loss of $89 million from $10 million of profit a year earlier, with margin at negative 4.9%. Hog Production sales were $691 million, and operating profit fell 61.3% to $34 million from $89 million, with margin at 5.0%. Other segment sales were $151 million; Other operating profit was a $5 million loss. Corporate expenses were $25 million. Unallocated items were an $18 million loss.

Sequentially, sales declined from $3.7 billion in the second quarter, and operating profit declined from $290 million. Packaged Meats operating profit declined from $265 million. Diluted earnings declined from $0.60 a share.

The company completed the Nathan’s Famous acquisition on October 26, 2026, after the quarter close. Smith said the deal further strengthens the brand portfolio and expands opportunities for profitable growth. The fiscal 2026 outlook includes about two months of Nathan’s Famous results.

Smith said commodity market pressure in upstream businesses is expected to continue in the fourth quarter. The company updated its fiscal 2026 outlook to reflect strong Packaged Meats performance and softer commodity markets. It now expects total company sales down low-single-digits versus fiscal 2025, Packaged Meats adjusted operating profit of $1,090 million to $1,140 million, Fresh Pork adjusted operating results from a $50 million loss to breakeven, Hog Production adjusted operating results from a $25 million loss to a $25 million profit, and total company adjusted operating profit of $900 million to $1,000 million. Capital expenditures are expected at $350 million to $375 million, excluding the proposed Sioux Falls processing facility. The outlook includes 53 weeks of results.

Available liquidity was $3.48 billion as of September 27, 2026, including $1.18 billion of cash and $2.30 billion of committed credit availability. Net debt to adjusted EBITDA on a trailing twelve-months basis was 0.5x. The company paid quarterly dividends of $0.3125 a share in April, May and August and anticipates a remaining fiscal 2026 quarterly dividend of $0.3125 a share, for an annual rate of $1.25 a share.

For the first nine months of fiscal 2026, sales were $10.9 billion, down 3.2%. Operating profit was $750 million, compared with $892 million a year earlier; adjusted operating profit was $783 million. Packaged Meats operating profit for the nine months was $770 million. Net cash flows from operating activities were $365 million, up $244 million from the first nine months of fiscal 2025.