Smithfield Foods Reports Q1 Profit Growth and Reaffirms Full-Year 2026 Guidance

Smithfield Foods Inc. (SFD) reported a steady increase in profitability for the first quarter, driven by improved operating margins and a slight uptick in net sales. The results demonstrate resilience in the company's core segments, allowing management to reaffirm its fiscal 2026 outlook. For the first quarter, net income attributable to Smithfield rose to $246 million, or $0.62 per share, compared with $224 million, or $0.57 per share, in the same period last year. Adjusted earnings for the quarter were $251 million, or $0.64 per share, up from $0.58 per share a year ago. Net sales for the period grew 0.8% to $3.800 billion. Operational efficiency improved as the operating margin rose to 8.7%, up from 8.5% in the first quarter of 2025. Adjusted operating profit reached $339 million, representing a 4% increase over the previous year. Looking ahead to fiscal year 2026, the company reaffirmed its forecast for total sales to increase by low-single digits. Smithfield projects adjusted operating profit to fall between $1.325 billion and $1.475 billion. This forecast is broken down by segment, with Packaged Meats expected to contribute $1.10 billion to $1.20 billion, Fresh Pork between $200 million and $260 million, and Hog Production between $150 million and $200 million. Capital expenditures are projected to be between $350 million and $450 million, focusing on maintenance and profit improvement projects. Notably, the 2026 outlook excludes the impact of the proposed Nathan's Famous acquisition and investments in a new processing facility in Sioux Falls, South Dakota.