BMO Capital upgraded its price objective for Tyson Foods (NYSE:TSN) to $73.00 from $67.00 on Tuesday and left its rating at Outperform. The firm pointed to fiscal first quarter 2026 operating profit that exceeded consensus estimates by roughly 4-5% as the primary driver behind the change.
Tyson reported stronger-than-expected results in its Chicken, Pork and Prepared Foods segments, which collectively offset softer performance in the Beef segment. The company recorded earnings per share of $0.97, narrowly above a consensus estimate cited at $0.95, despite a reported $0.06 headwind tied to Other Income and Tax items.
The company reiterated its fiscal year 2026 operating profit guidance, making only modest adjustments: the Pork segment range was narrowed while the Beef segment range was widened. Guidance for other segments was altered solely to reflect an accounting change, the company said.
BMO wrote that Tyson's operational improvements are becoming apparent. The research note highlighted potential upside as beef margins show early signs of improvement, complemented by solid fundamentals in chicken and pork and accelerating growth in Prepared Foods.
In related analyst moves following Tyson's quarterly report, Bernstein raised its price target to $69 from $60 while maintaining a Market Perform rating. That adjustment reflected a change in how Tyson reports segment operating profit, which Bernstein noted now excludes corporate cost and amortization allocations.
Barclays also weighed in, reiterating an Overweight rating and keeping a $78 price target. These updates came after Tyson reported an adjusted earnings per share figure of $0.97 for the first quarter of fiscal 2026, a result the company reported as surpassing a forecast of $0.93. Revenue for the quarter was reported at $14.3 billion, ahead of a $14.0 billion projection.
Taken together, the analyst moves and Tyson's quarterly results signal continuing positive sentiment from some corners of the sell-side, driven by segment-level performance and the company’s updated reporting methodology. The different analyst notes reflect both model adjustments and reactions to the quarter's segment-level dynamics rather than changes to headline guidance for the full fiscal year.
Additional context: The company cited an accounting-related adjustment to segment reporting that affected how certain costs are allocated across segments. Analysts responding to the earnings release adjusted their price targets and sometimes their rating rationale to incorporate that reporting change as well as the quarter's operational outcomes.