“While we expect input costs to remain elevated by historical standards, they should be slightly lower than in 2025,” CFO Mark Hall said.
The company has raised prices to offset rising raw material costs, and has also benefited from increased demand for its products as consumers opt to cook at home more amid tighter budgets.
Smithfield expects total annual sales to be up by low-single-digits, compared with analysts’ estimates of 1.26% growth. It also expects annual adjusted operating profit between $1.33 billion and $1.48 billion, compared with profit of $1.34 billion recorded in fiscal year 2025.
Executives said the outlook accounts for several risks, including the Middle East conflict, which could push up costs of fuel and petroleum-based materials such as packaging, besides raising corn prices as they also track oil markets. However, they cautioned that the full impact is yet to be determined.
The company’s sales rose 7% to $4.23 billion during the quarter, compared with analysts’ expectations of $4.14 billion, according to data compiled by LSEG, reflecting higher market prices.
Smithfield Foods shares were trading 5% higher at $24.65.