Archer Daniels Midland Company ADM posted third-quarter 2026 adjusted earnings of $1.77 per share, up 92.4% year over year. The figure surpassed the Zacks Consensus Estimate of $1.63 by 8.6%. On a reported basis, earnings were $1.70 per share, up from 22 cents 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 9.6% to $22.34 billion but missed the consensus estimate of $22.67 billion by 1.5%. Results benefited from favorable North American biofuel margins, strong crushing performance and robust ethanol economics. Global oilseed processing volumes increased 1.6% year over year.
ADM's Q3 Revenue Mix Reflects Oilseeds Growth
Ag Services and Oilseeds revenues increased 11.7% year over year to $17.45 billion. Carbohydrate Solutions revenues rose 7.5% to $2.94 billion, while Nutrition revenues declined 4.1% to $1.84 billion. Other Business revenues increased 5.5% to $115 million.
The company processed 8.9 million metric tons of oilseeds, up 1.6% from the prior-year quarter. Corn processing volumes increased 1.4% to 4.7 million metric tons. Higher global crushing production and sustained soybean meal demand supported oilseed operations during the quarter.
Archer Daniels' Oilseeds Profit More Than Doubles
Ag Services and Oilseeds operating profit surged 105% year over year to $778 million. Results included approximately $35 million of net positive mark-to-market and timing impacts, primarily reflecting favorable contributions from Refined Products and Other.
Ag Services operating profit declined 9% to $172 million, reflecting weaker performance in certain global agricultural markets. Higher North American corn and soybean exports partially offset the decline. Crushing profit jumped to $311 million from $13 million, benefiting from stronger North American biofuel margins, increased domestic demand and higher global energy prices.
Refined Products and Other operating profit increased 82% to $218 million, supported by favorable North American biodiesel margins. Equity earnings from ADM's investment in Wilmar advanced 38% to $77 million.
ADM's Carbohydrate Solutions Gains From Ethanol
Carbohydrate Solutions operating profit increased 40% year over year to $470 million. Strong North American ethanol margins, policy incentives and increased domestic demand supported performance. Robust industry-wide ethanol exports provided additional momentum.
Starches and Sweeteners’ operating profit rose 11% to $324 million as favorable ethanol economics offset continued weakness in liquid sweetener margins and volumes. Starches operations remained stable, while global wheat milling volumes held steady amid competitive pricing conditions.
Vantage Corn Processors' operating profit surged to $146 million from $43 million in the prior-year quarter. Higher domestic ethanol demand, supportive policy incentives and stronger industry exports contributed to the improvement.
Archer Daniels' Nutrition Profit Inches Higher
Nutrition operating profit increased 3% year over year to $134 million, reflecting mixed performance across its businesses. Human Nutrition operating profit declined 3% to $93 million despite progress in Flavors and continued recovery at the Decatur East facility.
Unplanned downtime, inflationary pressures on certain input costs and softness in Biotics weighed on Human Nutrition. The prior-year period also benefited from approximately $10 million in insurance proceeds, affecting the comparison.
Animal Nutrition operating profit advanced 21% to $41 million. Continued operational improvements and benefits from portfolio actions implemented in 2025 supported the business.
ADM's Profitability Improves, Cash Flow Declines
Total segment operating profit increased 64% year over year to $1.38 billion, reflecting improvements across all three segments. Gross profit climbed 48.5% to $1.89 billion, while selling, general and administrative expenses increased 8.4% to $946 million.
Net earnings attributable to ADM reached $821 million compared with $108 million in the year-ago quarter. The company ended September with cash and cash equivalents of $711 million, long-term debt, including current maturities, of $7.58 billion, and shareholders' equity of $23.86 billion.
For the first nine months of 2026, cash provided by operating activities totaled $1.79 billion compared with $5.77 billion a year earlier. Capital expenditures totaled $773 million, while cash dividends amounted to $764 million.
Archer Daniels Raises Its 2026 Earnings Outlook
ADM raised its 2026 adjusted earnings guidance to approximately $5.50-$5.80 per share from the previous range of $5.15-$5.60. Management expects year-over-year operating profit improvements across all segments in the fourth quarter.
The revised outlook reflects continued favorable biofuel conditions, disciplined execution and benefits from ADM's extensive North American footprint. Management highlighted stronger domestic biofuel demand following the finalization of Renewable Volume Obligations and supportive global energy prices.
The company lowered its projected 2026 capital expenditures to $1.2-$1.3 billion from the previous range of $1.3-$1.5 billion, reflecting its focus on high-return investments. ADM continues to monitor macroeconomic, geopolitical, policy and trade developments that could influence its operating environment.
Shares of this Zacks Rank #2 (Buy) company have lost 4.3% in the past six months compared with the industry’s 24.7% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider in the Consumer Staples Space
Lamb Weston Holdings, Inc. LW, a leading global manufacturer, marketer and distributor of value-added frozen potato products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS implies growth of 26.1% from the year-ago figure. LW delivered a trailing four-quarter earnings surprise of 22.1%, on average.
Mama's Creations, Inc. MAMA, a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2. MAMA delivered a trailing four-quarter earnings surprise of 121.7%, on average.
The Zacks Consensus Estimate for Mama's Creations’ current fiscal-year sales and EPS indicates an increase of 30.3% and 66.7%, respectively, from the year-ago period.
The J.M. Smucker Company SJM, a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products, currently carries a Zacks Rank #2. SJM delivered a trailing four-quarter earnings surprise of 13.8%, on average.
The Zacks Consensus Estimate for The J.M. Smucker’s current fiscal-year EPS implies growth of 17.1% from the year-ago figure.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
The J. M. Smucker Company (SJM): Free Stock Analysis Report
Lamb Weston (LW): Free Stock Analysis Report
Mama's Creations, Inc. (MAMA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).