adjusted eps
5.15–5.6 $per share
FY 2026
official guidance
| Revenue | $82.1B |
|---|---|
| Operating income | $2.1B |
| Net income | $1.8B |
| Free cash flow | $833.0M |
| Operating margin | 2.6% |
| Net margin | 2.2% |
| Return on equity | 7.5% |
| Period | TTM 2026-06-30 |
OpenFilings analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong execution, but cyclical and policy-sensitive earnings leave an insufficient margin of safety for a fresh buy.
Latest call · Q2 2026HOLD: ADM delivered a strong 2Q26 with adjusted EPS of $1.84, segment operating profit of $1.5 billion, and raised FY26 adjusted EPS guidance to $5.15-$5.60 from $4.15-$4.70.
The upside is real—biofuels, ethanol, nearly 5% crush-volume growth, and Nutrition recovery—but the outlook remains heavily dependent on policy-supported margins, China’s soybean purchases, and largely unhedged 4Q crush economics, limiting conviction after the guidance raise.
Q3 should benefit from constructive biofuel margins, ethanol strength, Nutrition execution, and the expected reversal of first-half mark-to-market impacts; management indicated Q3 could exceed Q4.
North American crushing is approximately 90% covered for Q3 but only about 30% for Q4, making fourth-quarter cash crush margins the key earnings swing factor.
FY26 guidance assumes China follows through on buying 25 million tons of U.S. soybeans; Ag Services was expected to be slightly lower in Q3 than Q2 before a potentially stronger Q4.
The 45Z tax-credit benefit estimate increased to approximately $250 million for FY26 from $150 million, but realization still depends on plant-level carbon-intensity verification, production, sequestration, wages, and industry pricing.
Fourth-quarter seasonality is unfavorable for flavors, while liquid sweetener volumes and margins remain soft.
Brownfield capacity expansions at four U.S. crush plants could add capacity at roughly one-fourth the capital intensity of greenfield projects; Phase 1 investment is expected to be approximately $100 million, with further projects phased through 2028-2029.
Natural colors are a credible Nutrition growth opportunity, with management targeting $80 million-$100 million of eventual operating profit from a roughly $1 billion U.S. market, but adoption is expected over several years.
Flavors are expected to grow at least mid-single digits over the medium term, with operating profit growing somewhat faster through operating leverage; Asia-Pacific growth and local-customer wins are encouraging.
Precision fermentation projects with Every and Bond have demonstrated feasibility, but management provided no financial target or clear commercialization timetable.
ADM continues to target $500 million-$750 million of aggregate cost savings over three to five years, while maintaining FY26 CapEx guidance of $1.3 billion-$1.5 billion and evaluating opportunistic share repurchases.
Management did not quantify the cash crush-margin assumptions behind the $5.15-$5.60 EPS range despite analyst requests; with only 30% of North American Q4 crush covered, the high end is difficult to underwrite.
The guidance relies on a favorable biofuels-margin environment continuing and on the reversal of first-half mark-to-market and timing impacts; management explicitly does not forecast new mark-to-market effects.
Earnings remain exposed to policy changes, energy prices, weather, geopolitical disruptions, and trade flows, including Ukraine-related grain-export disruption and Middle East volatility.
Liquid sweeteners remain under pressure, and Decatur East is improving but management acknowledged the complex plant recovery is not fully resolved.
The $80 million-$100 million natural-colors target and precision-fermentation opportunity are longer-dated and conditional on customer reformulation and adoption; precision fermentation has no disclosed financial contribution estimate.
adjusted eps
5.15–5.6 $per share
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
ARCHER-DANIELS-MIDLAND COMPANY
ARCHER-DANIELS-MIDLAND COMPANY
ARCHER-DANIELS-MIDLAND COMPANY
ARCHER-DANIELS-MIDLAND COMPANY
ARCHER-DANIELS-MIDLAND COMPANY
ARCHER-DANIELS-MIDLAND COMPANY