A month has gone by since the last earnings report for Agco (AGCO). Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Agco due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for AGCO Corporation before we dive into how investors and analysts have reacted as of late.
AGCO Corp. Q1 Earnings Beat Estimates, Sales Up Y/Y
AGCO posted adjusted earnings of 94 cents per share for the first quarter of 2026, handily beating the Zacks Consensus Estimate of 44 cents. The quarter’s adjusted figure compared with 41 cents a year ago.
Including one-time items, earnings were 76 cents per share compared with 14 cents in the year-ago quarter.
Net sales rose 14.3% year over year to $2.34 billion and edged past the Zacks Consensus Estimate of $2.30 billion. The company pointed to disciplined execution in a challenging market, with outperformance in high-horsepower equipment and precision agriculture, even as North America industry unit retail tractor sales were down 8% year over year in the quarter.
Gross Margin Down Y/Y
Cost of sales increased 15.1% year over year to $1.76 billion in the first quarter. Gross profit rose 11.7% year over year to $581.4 million in the reported quarter. The gross margin was 24.8% compared with the prior-year quarter’s 25.4%. Selling, general and administrative expenses were $339.1 million compared with the year-ago quarter’s $325.8 million. Adjusted income from operations increased 28.8% year over year to $107.4 million. The adjusted operating margin was 4.6% compared with the year-earlier quarter’s 4.1%.
Q1 Segmental Performance
Sales in the North America segment increased 10% year over year to $406.4 million in the first quarter. The segment reported an operating loss of $51 million compared with the prior-year quarter’s operating loss of $24.2 million.
Sales in the Latin America segment decreased 17.3% year over year to $211.7 million. The segment reported an operating loss of $40.9 million against the year-ago quarter’s operating income of $6.5 million.
The EME (Europe/Middle East) segment’s sales were $1.60 billion compared with $1.33 billion in the year-ago period, up 20.3% year over year. EME’s operating income was $259 million compared with the year-ago quarter’s $154.4 million.
Sales in the Asia/Pacific/Africa segment increased 31.2% year over year to $124 million. The segment reported an operating profit of $4 million against the prior-year quarter’s operating loss of $2.7 million.
Cash Flow Update
AGCO Corp reported cash and cash equivalents of $514.9 million as of Mar. 31, 2026, down from $861.8 million as of Dec. 31, 2025. Net cash used in operating activities totaled $410.4 million in the quarter compared with $122.2 million in the year-ago quarter.
Lifts 2026 EPS View
The company increased its full-year adjusted earnings per share outlook to approximately $6.00. AGCO also raised its regular quarterly dividend to $0.30 per share from $0.29, reinforcing its commitment to returning cash to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
VGM Scores
Currently, Agco has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Agco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Agco is part of the Zacks Manufacturing - Farm Equipment industry. Over the past month, CNH Industrial (CNH), a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2026 more than a month ago.
CNH reported revenues of $3.83 billion in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $0.01 for the same period compares with $0.10 a year ago.
CNH is expected to post earnings of $0.11 per share for the current quarter, representing a year-over-year change of -35.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
CNH has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).