10-Q · April 30, 2026
Pilgrim's Pride (PPC) reported Q1 2026 results with revenue of $4.53 billion, slightly beating estimates but EPS of $0.51 fell short of projections. While revenue showed resilience with a modest increase from the prior…
Earnings analysis · 10-Q
PPC earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Pilgrim’s Pride generated $4,653.2 million of revenue and $0.49 of diluted EPS in the quarter, with revenue modestly higher sequentially but down 2.2% year over year and EPS down $0.95 year over year. Gross margin was…
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Pilgrim’s Pride generated $4,653.2 million of revenue and $0.49 of diluted EPS in the quarter, with revenue modestly higher sequentially but down 2.2% year over year and EPS down $0.95 year over year. Gross margin was approximately 7.2%, materially below the prior-year 13.8%, indicating that profitability remains under pressure despite the sequential EPS recovery. The filing provides no quantitative guidance, while the newly disclosed JBS proposal introduces substantial transaction uncertainty and feed-cost sensitivity remains high.
Reported figures
- Earnings per share
- $0.49
- Gross margin
- 7.2%
What stood out
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Revenue improved sequentially, down year over year
Revenue was $4,653.2 million, up approximately 0.5% from $4,630 million in the prior quarter but down approximately 2.2% from $4,760 million in the prior-year quarter.
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Gross margin remains sharply compressed
Gross profit was $333.7 million, implying a gross margin of approximately 7.2%, down from 7.3% in the prior quarter and 13.8% in the prior-year quarter.
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EPS recovered sequentially but missed consensus
Diluted EPS was $0.49, up from $0.06 in the prior quarter but down from $1.44 in the prior-year quarter and below the $0.53 consensus estimate.
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Feed costs remain a major earnings sensitivity
Feed ingredient purchases totaled $879.165 million for the quarter; a hypothetical 10% increase in feed prices would have increased cost of sales by $87.917 million.
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No reported control deficiencies
Management reported that disclosure controls were effective as of September 27, 2026, and identified no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Uncertainty surrounding JBS acquisition proposal
The company added a material transaction-related risk after receiving an unsolicited proposal from JBS on August 18, 2026. JBS beneficially owns approximately 82.1% of outstanding common stock, and the proposal could result in significant costs and affect stock-price volatility; the filing states there is no assurance a transaction will be reached or consummated.
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Feed inflation threatens profitability
Commodity-price exposure remains material: a 10% increase in feed ingredient prices would have increased quarterly cost of sales by $87.917 million, while feed ingredient inventory was $182.153 million and would have risen by $18.215 million under the same price increase.
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International currency exposure
Foreign-exchange exposure is significant. As of September 27, 2026, Mexican subsidiaries had net assets of $748.6 million and European subsidiaries denominated in British pounds had net assets of $960.9 million; a 10% weakening would reduce those net assets by $68.1 million and $87.4 million, respectively.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management discusses ongoing inflation, commodity-price, foreign-exchange and industry risks but does not state a numeric outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.