The steep earnings miss and 47.6% drop in Adjusted EBITDA signal severe commodity headwinds that are unlikely to reverse quickly. Traders should watch for further margin compression in Q3 as supply growth outpaces demand, and monitor the pending litigation settlement costs which added $0.55 to adjusted EPS. The stock may re-rate lower as sell-side estimates get cut.
Price Chart
Executive Summary
Pilgrim's Pride reported Q2 2026 GAAP EPS of $0.06, a 96% YoY decline from $1.49, and Adjusted EPS of $0.64, well below the consensus estimate of $0.66. Revenue fell 2.8% YoY to $4.63B, missing the $4.70B consensus, driven by a 25%+ drop in jumbo commodity cutout values and compressed margins across all segments. The sharp earnings miss and deteriorating fundamentals make this a bearish read-through for the stock.
Key Financial Metrics
Key Facts
- GAAP EPS of $0.06 vs $1.49 YoY, down 96%
- Adjusted EPS of $0.64 missed consensus of $0.66
- Revenue of $4.63B missed consensus of $4.70B, down 2.8% YoY
- Consolidated GAAP operating margin fell to 1.4% from 10.8% YoY
- Adjusted EBITDA margin fell to 7.8% from 14.4% YoY
- Litigation settlements of $135.7M weighed on results
- U.S. segment posted a GAAP operating loss of $11.1M vs income of $355.0M YoY
- Mexico segment operating income fell 81% YoY to $16.5M
- Net leverage ratio remains low at 1.43x Adjusted EBITDA
Financial Impact
GAAP net income fell 96% YoY to $13.2M; Adjusted net income fell 62% to $153.9M
Risk Factors
- Continued commodity pricing pressure from oversupply
- Litigation settlement costs remain elevated at $135.7M in Q2 alone
- Mexico margins compressed 81% YoY on increased protein supply
- Counter-seasonal jumbo cutout declines of 25%+ may persist
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3335645 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | 8-K | $30.48 $30.25 | ▼ −0.75% | ▲ +0.45% | $27.50 (−9.78%) |
Sep 4, 2026 28d ago | Press Release | $30.48 $30.25 | ▼ −0.75% | ▲ +0.45% | $27.50 (−9.78%) |
Aug 20, 2026 6w ago | 8-K | $31.26 $31.11 | ▼ −0.48% | ▼ −1.59% | $27.50 (−12.03%) |
Aug 7, 2026 8w ago | Court Ruling | $27.45 $27.90 | ▲ +1.64% | ▲ +1.24% | $27.50 (+0.18%) |
Jul 29, 2026 9w ago | Press Release | $29.34 $27.55 | ▲ +6.12% | ▲ +9.74% | $27.50 (+6.27%) |
Jul 9, 2026 12w ago | Press Release | $28.25 $29.01 | ▲ +2.69% | ▲ +3.25% | $27.50 (−2.65%) |
Apr 13, 2026 24w ago | Press Release | $35.63 $33.03 | ▼ −7.30% | ▼ −10.59% | $27.50 (−22.82%) |
Apr 8, 2026 25w ago | Press Release | $35.99 $33.65 | ▼ −6.50% | ▼ −9.69% | $27.50 (−23.59%) |
Mar 30, 2026 26w ago | Press Release | $37.44 $35.60 | ▼ −4.91% | ▼ −9.21% | $27.50 (−26.55%) |
US Market Status
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