Smithfield Foods (NYSE:SFD), owners of Nathan’s Famous Hot Dogs, delivered a record 2025, reporting adjusted operating profit of $1.3 billion, up 30% year over year, along with record net income of $1 billion and adjusted diluted EPS of $2.55, up 36% from 2024. Sales increased 10% for the full year, with gains across packaged meats, fresh pork, and hog production, while adjusted operating margin rose 140 basis points to 8.6%.
Leadership said the results show that its streamlined portfolio, vertically integrated model, and disciplined execution are supporting earnings and cash flow growth.
The company also linked that performance to technology use across operations.
Executives pointed to more automation, plant efficiency programs, yield optimization, and supply chain savings, while outlining a co-sourcing partnership that brings artificial intelligence into finance operations.
Smithfield also said it plans to invest up to $1.3 billion over three years in a new packaged meats and fresh pork facility in Sioux Falls that is expected to support mechanization and long-term manufacturing flexibility.
Why It Matters: Smithfield’s earnings call showed that technology is playing a direct role in margin improvement across the business. Management described AI as part of a range of daily operations to improve speed, lower cost, and strengthen competitiveness. CEO Shane Smith said, “We are increasingly leveraging advanced technology to become a more efficient business and to further strengthen our competitive position.”
- Technology Across the Business: Smithfield made technology a major part of its 2026 operating plan, saying it wants to “accelerate the use of innovative technologies across all aspects of our business.” Executives said those tools are being used “to drive innovation, productivity, and optimize performance on our farms, in our processing facilities, and across our corporate functions.” That sentiment shows that technology is tied to the company’s overall performance across several operating areas.
- AI and RPA in Finance: One of the clearest examples came in finance, where Smithfield has partnered with a third-party technology provider to bring artificial intelligence and process automation into administrative and transactional work. Smith said the partnership gives the company “immediate access to the latest technology” and flexibility as technology continues to change.
- Automation in Plants and Supply Chain: Automation remains a major part of Smithfield’s manufacturing and supply chain plan. Executives linked plant mechanization and improvement projects to lower manufacturing costs, better labor use, and stronger productivity, with CFO Mark Hall saying that a large share of annual capital spending supports “various plant automation and improvement projects as we continue to lower our manufacturing cost structure and better utilize labor.” The company’s 2026 outlook also includes “accelerated automation initiatives” as one factor expected to support margin expansion.
- Sioux Falls as a Technology Upgrade: The planned Sioux Falls investment stands out as a large manufacturing upgrade with direct technology implications. Smithfield said the current facility is more than 100 years old and that its footprint makes it difficult to implement “some of the automation and technology that we as a company are really rolling out across our footprint.” The replacement facility is expected to support efficiency gains in fresh pork and packaged meats and improve the company’s long-term cost structure.
- Data-Driven Gains Reach the Upstream Business: Technology and process improvement are also showing up in hog production and fresh pork. Management tied 2025 hog production improvement to genetics, feed management, herd health, and other operating changes, while fresh pork priorities for 2026 include more mechanization, plant efficiency, yield optimization, and supply chain savings. This indicates that Smithfield is applying technology and plant efficiency to improve consistency and increase the profit it earns on each hog.
Go Deeper -> Smithfield Food’s Earnings Report – Seeking Alpha
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