Archer Daniels Midland Company ADM posted first-quarter 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, but the top line missed the same. Meanwhile, earnings and revenues increased year over year.
ADM’s first-quarter results reflected steady underlying performance, with stronger ethanol margins and improved execution in Carbohydrate Solutions and Nutrition helping offset weakness in Ag Services & Oilseeds that was amplified by unfavorable mark-to-market and timing impacts. Revenues were slightly higher year over year, while adjusted profitability improved modestly as risk management and a more constructive biofuels backdrop supported ethanol, and the Nutrition business benefited from stronger Flavors demand and ongoing operational recovery.
Insight Into ADM’s Q1 Performance
Adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 66 cents. Also, the figure rose from adjusted earnings of 70 cents per share in the year-ago quarter. On a reported basis, Archer Daniels’ first-quarter earnings were 62 cents per share, up from 61 cents reported in the year-ago quarter.
Archer Daniels Midland Company Price, Consensus and EPS Surprise
Archer Daniels Midland Company price-consensus-eps-surprise-chart | Archer Daniels Midland Company Quote
Revenues increased 1.6% year over year to $20.5 billion but lagged the consensus estimate of $21.1 billion.
Segment-wise, revenues for Ag Services & Oilseeds increased 2.1% year over year to $16 billion, while Carbohydrate Solutions revenues edged down 0.5% to $2.56 billion. Nutrition revenues dipped 0.7% to $1.81 billion. Other Business revenues rose 11.6% to $125 million versus $112 million in the year-ago quarter. The Zacks Consensus Estimate for these segments’ revenues was pegged at $16.6 billion, $2.54 billion and $1.83 billion, respectively.
The gross profit increased 3.6% year over year to $1.22 billion, while the gross margin stood at 5.9%. Selling, general and administrative expenses rose to $961 million from $932 million in the prior-year quarter.
ADM reported total segment operating profit of $764 million, up 2.3% from $747 million in the year-ago quarter. The year reflected a sharp divergence across the company’s three operating segments, with strength in Carbohydrate Solutions and Nutrition offset by a decline in Ag Services & Oilseeds.
ADM has a trailing four-quarter return on invested capital of 6.4% on an adjusted basis.
ADM’s Segmental Operating Profit
The Ag Services & Oilseeds segment’s operating profit fell 34% year over year to $273 million. The year-over-year decline was caused primarily by net negative mark-to-market and timing impacts tied to a strengthening commodity environment following U.S. biofuels policy clarity. The Ag Services subsegment’s operating profit rose 26% year over year to $200 million, supported by higher export activity from North America, including increased soybean and sorghum shipments to China and strong corn exports.
The Crushing subsegment’s operating profit swung to a loss of $79 million from a profit of $47 million in the prior-year quarter. ADM attributed the decrease to net negative mark-to-market and timing impacts driven by the strengthening margin environment. Operationally, plant-processed volumes improved, with oilseed tonnage produced up 2% year over year, and soybean meal sales remained strong throughout the quarter.
Refined Products and Other operating profit were down 36% from the prior year due to net negative mark-to-market and timing impacts in the current quarter, with the movement similarly tied to the strengthening margin environment.
The Carbohydrate Solutions segment posted an operating profit of $356 million, up 48% year over year, primarily reflecting strengthening ethanol margins, aided by effective risk management and policy incentives. Starches and Sweeteners’ operating profit rose 11% to $229 million, driven mainly by increased ethanol margins related to ADM’s corn wet-milling ethanol operations, somewhat offset by lower global liquid sweeteners and starches volumes and margins.
Vantage Corn Processors’ operating profit increased to $127 million from $33 million (up $94 million), as the company’s corn dry-milling ethanol operations benefited from stronger ethanol margins, risk management and policy incentives.
The Nutrition segment reported operating profit of $135 million, up 42% year over year, reflecting improved performance in both the Human Nutrition and Animal Nutrition subsegments, including foreign exchange gains. Human Nutrition’s operating profit increased 39% to $104 million, driven largely by higher Flavors sales, foreign exchange gains and the continued recovery of the Decatur East plant. Animal Nutrition’s operating profit rose 55% to $31 million, primarily supported by portfolio actions taken over the last year, a focus on higher-margin product lines, ongoing cost optimization and foreign exchange gains.
Archer Daniels’ Other Financials
The company ended the quarter with cash and cash equivalents of $591 million, long-term debt, including current maturities, of $7.6 billion, and shareholders’ equity of $35.6 billion. As of March 31, 2026, ADM generated $150 million in cash from operating activities. It paid dividends of $254 million in the reported quarter.
ADM’s 2026 Outlook
ADM raised its full-year 2026 adjusted earnings outlook to approximately $4.15-$4.70 per share from its prior range of $3.60-$4.25. The company said the updated outlook assumes continued progress on priorities and reflects expected improvement primarily in crushing and ethanol, tied to the March 2026 finalization of the 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuels Standard.
The company reiterated that external factors remain key swing items, including consumer trends, energy costs, supply chain dislocations, ethanol developments and evolving global trade and tariff conditions. ADM also maintained its capital expenditure expectation of $1.3 to $1.5 billion for 2026.
We note that shares of this Zacks Rank #3 (Hold) company have gained 15% in the past three months compared with the industry’s 9.6% growth.
ADM Stock's Price Performance
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