ADM Raises Full-Year Profit Forecast Amid Strong Oilseed Processing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
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Source: Newsfilter
- Full-Year Forecast Increase: Archer-Daniels-Midland (ADM) raised its 2026 adjusted earnings per share forecast from $3.60-$4.25 to $4.15-$4.70, reflecting a strong oilseed processing outlook and clarity over U.S. biofuel blending mandates, which is expected to enhance the company's competitiveness in the global grain market.
- Quarterly Earnings Beat: ADM reported an adjusted profit of 71 cents per share for the quarter ending March 31, surpassing analysts' expectations of 66 cents, indicating strong performance amid improved oilseed processing margins and a rebound in biofuel demand.
- Crushing Unit Losses: Despite soaring commodity prices, ADM's crushing unit posted a quarterly operating loss of $79 million, down from a profit of $47 million a year earlier, primarily due to mark-to-market losses, although the company noted increased processing volumes and an improved margin environment.
- Agricultural Services Profit Growth: ADM's agricultural services unit saw a 26% year-over-year increase in quarterly operating profit to $200 million, driven by increased North American exports of soybeans and sorghum to China, highlighting market recovery potential following the U.S.-China trade truce.
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Analyst Views on ADM
Wall Street analysts forecast ADM stock price to fall
5 Analyst Rating
0 Buy
2 Hold
3 Sell
Moderate Sell
Current: 80.040
Low
50.00
Averages
56.80
High
61.00
Current: 80.040
Low
50.00
Averages
56.80
High
61.00
About ADM
Archer-Daniels-Midland Company is a global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. It is a human and animal nutrition provider. Its Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds, such as soybeans and soft seeds into vegetable oils and protein meals. Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. Nutrition segment is engaged in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions, including plant-based proteins, flavors and colors derived from nature, flavor systems, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Legal Disputes Impact Development: Joby Aviation's lawsuit against Archer for corporate espionage has led to declining investor confidence in the eVTOL sector, with Archer's stock down 9% this year and losing over a third of its value, indicating the negative impact of legal issues on market sentiment.
- Certification Delays: Despite the Trump administration's eVTOL Integration Pilot Program aimed at accelerating industry growth, ongoing legal battles threaten to prolong certification timelines and increase costs, as warned by H2 Advisors' Mike Hirschberg, which could hinder overall industry progress.
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- Strong Financial Performance: In its Q1 2026 earnings call, ADM reported an adjusted EPS of $0.71 and total operating profit of $764 million, with cash flow from operations at $442 million, indicating robust profitability and cash flow management.
- Improved Market Conditions: CEO Juan Luciano noted that market conditions for biofuels improved, particularly with significant gains in soybean crush and ethanol margins, driven by expectations for renewable volume obligations in 2026 and 2027.
- Upgraded Outlook: ADM raised its full-year adjusted EPS guidance for 2026 to a range of $4.15 to $4.70, up from the previous range of $3.60 to $4.25, demonstrating a positive outlook for future performance.
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- Legislative Progress: The U.S. House of Representatives passed legislation on Wednesday allowing year-round sales of E15 gasoline, a significant victory for corn farmers after over a decade of failed attempts to expand the E15 market.
- Market Impact: The promotion of E15 gasoline is expected to significantly boost farm profits, especially as growers face record crop yields and rising input costs like fertilizers, providing crucial market support.
- Industry Reaction: Renewable Fuels Association President Geoff Cooper stated that this bill offers much-needed certainty for fuel retailers, oil refiners, ethanol producers, and consumers amid extreme market volatility and rising costs.
- Future Challenges: Despite the House's approval, the bill's prospects in the Senate remain uncertain, and it still requires support from the president, which could affect the market rollout of E15.
See More
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