JBS, the world's largest meatpacker, reported a sharp fall in third-quarter profit on Monday, 9 November 2026, as high cattle costs squeezed margins even though its United States beef business improved through the quarter.

Net profit attributable to JBS shareholders came in at $164 million, down more than 70% from $581 million a year earlier, the company said in its results release. Earnings per share fell to $0.15, from $0.52 in the same quarter of 2025. Revenue edged up less than 1% to $22.74 billion, slightly below the $22.82 billion analysts had expected, according to a poll by LSEG reported by Reuters.

Profit miss as beef costs bite

Adjusted earnings before interest, tax, depreciation and amortisation, a measure of underlying operating profit, fell 36% from a year earlier to $1.18 billion. That was also below the $1.32 billion expected in the LSEG poll of analysts. Adjusted operating income dropped 58% to $521 million.

The miss reflects a prolonged shortage of cattle in the United States, which has pushed beef prices near record highs and squeezed the companies that buy cattle and sell beef. Packers pay more for live animals while struggling to pass the full increase on to buyers, and JBS said it faced a more challenging operating environment across several of its business units during the quarter.

Chief executive Gilberto Tomazoni said in the earnings report that the third quarter had been difficult across several parts of the group, even as parts of the business showed improvement as the quarter went on.

US beef improves through the quarter

There was better news in JBS Beef North America, which accounts for roughly a third of group revenue. Sales in the division rose 4.3% to $7.56 billion, helped by an improving operating environment during the quarter, including the reopening of some cattle crossings between the United States and Mexico.

Margins in the North American beef business improved month by month, from negative 2.9% in July to breakeven in August and positive 3.9% in September, according to the company's release. That recovery was not enough to offset weakness elsewhere in the group, and the division still ended the quarter only narrowly profitable.

Brazil hit by lower exports to China

JBS Brazil reported lower net sales than a year earlier, mainly because export volumes fell after China completed its 2026 import quota. China is a major buyer of Brazilian beef, and the end of the quota left JBS with fewer shipments to its largest overseas market in the quarter.

The company also reported negative free cash flow of $167 million for the quarter, a fall of $551 million from a year earlier. JBS said the decline was explained mainly by the $653 million drop in adjusted operating profit and by higher working capital use in Brazil, particularly inventories.

What happens next

Investors will now watch whether the improvement in United States beef margins continues into the final quarter of the year, and whether cattle supplies ease enough to rebuild packer margins. The company also announced a $542 million acquisition, including debt, of Flora, and said Wesley Batista Filho will start as global chief executive in January 2027.

For shoppers, the results underline why beef prices have stayed high: with cattle in short supply, packers are paying more for animals, and those costs are working their way through the supply chain. For JBS, the question is whether the late-quarter recovery in its biggest market can carry into 2027, or whether the squeeze on margins has further to run.