Archer Daniels Midland (NYSE:ADM) reported stronger-than-expected third-quarter 2026 earnings on Tuesday, supported by improved biofuel margins and higher operating profits across its three business segments. The agricultural commodities and processing company also raised its full-year earnings guidance, although quarterly revenue fell short of Wall Street expectations.
ADM reported adjusted earnings per share of $1.77, exceeding the analyst consensus estimate of $1.57 by $0.20. Revenue increased 10% year over year to $22.34 billion, compared with expectations of $23.1 billion.
Despite the earnings beat and improved outlook, the company’s shares showed little movement in premarket trading, edging up just 0.01% following the announcement.
ADM delivered adjusted earnings per share of $1.77 for the third quarter, surpassing the consensus estimate of $1.57 by approximately 12.7%.
The result reflected stronger profitability across the company’s operations, particularly within Agriculture Services and Oilseeds and Carbohydrate Solutions.
Quarterly revenue reached $22.34 billion, up from $20.37 billion in the corresponding period of 2025.
The 10% year-over-year increase demonstrated higher sales activity, although revenue fell approximately $760 million short of the $23.1 billion analyst forecast.
The contrasting performance between earnings and revenue highlighted ADM’s ability to improve profitability despite generating less revenue than expected.
The company attributed its stronger earnings to favourable conditions in North American biofuels markets, its extensive regional operating network and effective business execution.
ADM Chair and Chief Executive Officer Juan Luciano pointed to improvements across the company’s operations as a key driver of third-quarter results.
“ADM delivered strong third quarter results, with earnings up significantly from the prior year quarter and operating profit growth across all segments,” Luciano said.
The company benefited from a constructive biofuels environment, supported by higher global energy prices and regulatory developments affecting renewable fuel demand.
ADM’s substantial North American agricultural processing footprint allowed it to participate in favourable market conditions, particularly within oilseed crushing and ethanol production.
All three operating segments reported higher operating profits compared with the prior-year quarter.
The improvement provided the foundation for management’s decision to raise its full-year adjusted earnings forecast.
ADM’s Agriculture Services and Oilseeds segment recorded operating profit of $778 million in the third quarter.
The figure represented a 105% increase compared with the corresponding period last year.
The substantial improvement was primarily driven by stronger North American biofuels margins, supported by higher global energy prices and the Renewable Volume Obligation policy finalised in March.
The regulatory framework contributed to more favourable conditions for renewable fuel production and related agricultural processing activities.
ADM’s extensive North American operations enabled the company to benefit from the improved margin environment.
The segment’s performance was a major contributor to the company’s stronger consolidated earnings.
Within Agriculture Services and Oilseeds, ADM’s crushing business recorded a $298 million increase in operating profit.
The improvement reflected favourable margins associated with demand for agricultural feedstocks used in biofuel production.
Higher energy prices and the constructive North American biofuels environment supported profitability across the company’s crushing operations.
The increase demonstrated the importance of processing margins to ADM’s financial performance.
The company’s ability to operate across a broad agricultural supply chain provided additional exposure to improved market conditions.
The strong crushing performance helped drive the 105% increase in Agriculture Services and Oilseeds operating profit.
ADM’s Carbohydrate Solutions segment reported third-quarter operating profit of $470 million, representing a 40% increase year over year.
The improvement was supported by stronger results from Vantage Corn Processors, which benefited from favourable North American ethanol margins.
Higher domestic ethanol demand also contributed to the segment’s performance.
The combination of improved pricing conditions and stronger demand supported profitability within ADM’s corn processing operations.
The segment’s growth demonstrated the broader contribution of renewable fuels to the company’s third-quarter results.
Alongside the gains in Agriculture Services and Oilseeds, Carbohydrate Solutions played a significant role in ADM’s earnings outperformance.
ADM’s Nutrition business reported operating profit of $134 million for the third quarter.
The figure represented a 3% increase compared with the corresponding period in 2025.
Although growth was more moderate than in the company’s agricultural processing divisions, the segment contributed to the overall improvement in operating profitability.
The increase meant that all three of ADM’s principal business segments recorded year-over-year operating profit growth.
The Nutrition division’s performance provided an additional contribution to earnings alongside the stronger results from biofuel-related activities.
Following the third-quarter earnings beat, ADM increased its adjusted earnings per share guidance for the full year 2026.
The company now expects adjusted EPS of between $5.50 and $5.80, compared with its previous forecast of $5.15 to $5.60.
The midpoint of the revised range is $5.65, above the analyst consensus estimate of $5.54.
The increase reflects management’s improved earnings expectations following stronger profitability across its business segments.
The new guidance also suggests confidence in the company’s ability to benefit from current market conditions during the remainder of the year.
Despite the upward revision, ADM shares were essentially unchanged in premarket trading, gaining only 0.01%.
ADM also lowered its expected capital expenditure for 2026.
The company now projects spending of between $1.2 billion and $1.3 billion, down from its previous forecast of $1.3 billion to $1.5 billion.
The revised range represents a reduction of $150 million at the midpoint, from $1.4 billion to $1.25 billion.
The lower spending forecast indicates that ADM expects to commit less capital to investment activities than previously anticipated.
The adjustment accompanies the company’s improved earnings outlook and stronger third-quarter operating performance.
Investors will be monitoring how the revised investment plans affect ADM’s operations and future growth priorities.
ADM’s third-quarter performance demonstrated the benefits of stronger North American biofuels markets, with operating profit increasing across all three business segments.
Adjusted earnings per share of $1.77 exceeded analyst expectations, while revenue increased 10% to $22.34 billion despite falling short of consensus forecasts.
Agriculture Services and Oilseeds operating profit more than doubled to $778 million, supported by favourable crushing margins and improved biofuel market conditions.
Carbohydrate Solutions operating profit increased 40% to $470 million, while Nutrition recorded a 3% improvement to $134 million.
Management raised its full-year adjusted earnings guidance to $5.50–$5.80 per share and reduced its capital expenditure forecast to $1.2 billion–$1.3 billion.
The company’s financial performance during the remainder of 2026 will depend partly on developments in agricultural processing margins, biofuel demand and global energy prices.
Investors will also be watching whether ADM can sustain its improved profitability while delivering revenue growth closer to market expectations.
Archer Daniels Midland is a global agricultural processing and commodities company involved in sourcing, transporting, processing and distributing agricultural products.
The company operates across three principal business segments: Agriculture Services and Oilseeds, Carbohydrate Solutions and Nutrition.
Its activities include grain merchandising, oilseed crushing, corn processing, biofuel production and the development of ingredients used in food, beverages and animal nutrition.
ADM serves customers across agricultural, food manufacturing, energy and industrial markets through an international network of processing facilities, transportation infrastructure and supply chain operations.
The company plays a significant role in connecting agricultural production with global demand for food, feed, renewable fuels and other agricultural products.
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