Smithfield Foods on Tuesday lowered its forecast for annual total sales and adjusted operating profit, citing ongoing pressures from cautious consumer spending and rising input costs. The company expects fiscal 2026 sales to remain roughly flat compared to the previous year, reflecting challenges in key business segments.

Shares of Smithfield declined about 3 percent in premarket trading following the announcement. The company reported that sales in its Hog Production unit fell 8.2 percent year-over-year to $772 million, underscoring the impact of changing consumer behavior and market conditions.

Despite a slowdown in inflation during June—largely due to decreased energy prices—consumer budgets continue to be constrained, prompting shoppers to opt for smaller packaging or lower-cost alternatives. This trend has affected demand across Smithfield’s product lines.

Smithfield is projecting adjusted operating profit for the fiscal year to range between $1.23 billion and $1.38 billion. The updated guidance reflects the company’s anticipation of persistent cost pressures and evolving market dynamics, including cautious spending patterns.

Meanwhile, U.S. President Donald Trump has signaled potential executive measures aimed at reducing tariffs on beef imports and easing regulatory burdens on producers. These steps are intended to help lower domestic beef prices, which could influence the broader industry landscape and benefit companies like Smithfield.

The company did not provide specific details on how these potential policy changes might affect its operations, but industry observers note that reduced tariffs and regulatory relief could ease some supply chain and cost pressures facing meat producers.

Smithfield Foods’ revised outlook highlights the ongoing challenges within the meat production sector amid shifting consumer preferences and broader economic uncertainties.