SFD (Smithfield Foods) Operating Income: $1,311 Mil (TTM As of Mar. 2026)


SFD Smithfield Foods Inc SFD
30 GF Score
Price $24.59
! 2 Warning Signs
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What is Smithfield Foods Operating Income?

Smithfield Foods SFD +0.84% 30 Operating Income is $1,311 Mil as of Mar. 2026. GuruFocus rates SFD with a GF Score™ of 30/100. The stock has 2 warning signs investors should review.

Smithfield Foods's Operating Income for the three months ended in Mar. 2026 was $331 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,311 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Smithfield Foods's Operating Income for the three months ended in Mar. 2026 was $331 Mil. Smithfield Foods's Revenue for the three months ended in Mar. 2026 was $3,800 Mil. Therefore, Smithfield Foods's Operating Margin % for the quarter that ended in Mar. 2026 was 8.71%.

Smithfield Foods's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Smithfield Foods's annualized ROC % for the quarter that ended in Mar. 2026 was 11.12%. Smithfield Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 23.24%.

Smithfield Foods  (NAS:SFD) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Smithfield Foods's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1324 * ( 1 - 22.29% )/( (9307 + 9205)/ 2 )
=1028.8804/9256
=11.12 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12177 - 1331 - ( 1539 - max(0, 1741 - 5166+1539))
=9307

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12002 - 1411 - ( 1386 - max(0, 2086 - 5031+1386))
=9205

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Smithfield Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1324/( ( (3613 + max(1960, 0)) + (3585 + max(2234, 0)) )/ 2 )
=1324/( ( 5573 + 5819 )/ 2 )
=1324/5696
=23.24 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1023 + 2328 + 276) - (1331 + 0 + 336)
=1960

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1066 + 2347 + 232) - (1411 + 0 + 0)
=2234

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Smithfield Foods's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=331/3800
=8.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Smithfield Foods Operating Income Related Terms

Smithfield Foods Operating Income Historical Data

* Premium members only.

The historical data trend for Smithfield Foods's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Smithfield Foods Operating Income Chart

Smithfield Foods Annual Data
Trend Apr11 Apr12 Apr13 Dec14 Dec15 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 488.00 694.00 -56.00 1,117.00 1,292.00

Smithfield Foods Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec22 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 313.00 232.00 307.00 441.00 331.00
SFD
30GF Score
Smithfield Foods Inc SFD
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Smithfield Foods Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,311 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $1,311 Mil mean?
Smithfield Foods (SFD) has a Operating Income of $1,311 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smithfield Foods and its competitors.
Is Smithfield Foods' Operating Income too high?
Smithfield Foods' current Operating Income is $1,311 Mil. Overall, Smithfield Foods has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Smithfield Foods' Operating Income compare to DAR and SJM?
Smithfield Foods' Operating Income of $1,311 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Consumer Packaged Goods company?
A good Operating Income depends on the Consumer Packaged Goods industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smithfield Foods and its competitors. Smithfield Foods's current Operating Income is $1,311 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smithfield Foods stock overvalued right now?
Smithfield Foods (SFD) has a current Operating Income of $1,311 Mil. The current Operating Income is $1,311 Mil. Smithfield Foods' overall GF Score™ is 30/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Smithfield Foods (SFD), the current Operating Income is $1,311 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Smithfield Foods Business Description

Other Exchanges 4IT:Germany
Address 200 Commerce Street, Smithfield, VA, USA, 23430
Smithfield Foods Inc is a hog producer and pork processor based in the United States of America. The company conducts its operations through three reportable segments: Packaged Meats, Fresh Pork, and Hog Production. The company generates the maximum of its revenue from the Packaged Meats segment. The Packaged Meats segment consists of the company's U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage).
30GF Score

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