Smithfield Foods Shares Rise After Strong Q4 Results

Smithfield Foods, Inc. (NASDAQ:SFD) shares are trading higher on Tuesday after it reported better-than-expected fourth-quarter results. Earnings Snapshot The company reported adjusted EPS of 83 cents, beating the consensus of 68 cents. Sales of $4.227 billion, up 7.0% year over year, outpaced the Street view of $4.138 billion. Adjusted operating profit rose 27.8% Y/Y to $402 million. Adjusted operating margin expanded to 9.5%, compared with 8.0% in the year-ago period. The company’s adjusted EBITDA from continuing operations totaled $502 million, compared with $402 million in the year-ago period. Adjusted EBITDA margin from continuing operations expanded to 11.9% from 10.2% in the year-ago quarter. As of Dec. 28, 2025, the company had $3.837 billion of available liquidity consisting of $1.539 billion in cash and equivalents. On March 23, the firm announced a dividend of 31 cents per share to be paid to shareholders on April 21, 2026. Nathan’s Famous Acquisition In January, the company struck a deal to acquire Nathan's Famous, Inc. (NASDAQ:NATH) at roughly $450 million. Smithfield is offering $102 per share and targeting a close in the first half of 2026, subject to shareholder and regulatory approvals. Outlook For FY26, the company sees sales growth in the low-single-digit range. Also, it projects adjusted operating profit at $1.100 billion–$1.200 billion for the Packaged Meats segment, $200–$260 million for Fresh Pork and $150–$200 million for Hog Production. This brings total adjusted operating profit to $1.325 billion–$1.475 billion. Smithfield projects capital expenditures at $350–$450 million, covering both profit-improvement and maintenance projects. President and CEO Shane Smith said, “Looking ahead to 2026, our objective is to again grow sales and profitability and we see a long runway ahead for future growth led by our flagship Packaged Meats segment and iconic brand portfolio.” SFD Price Action: Smithfield Foods shares are up 4.13% at $24.45 at publication on Tuesday. Photo via Shutterstock