10-Q · May 5, 2026
Archer-Daniels-Midland Company (ADM) reported Q1 2026 results, with revenues of $20.49 billion and an EPS of $0.71, surpassing the prior year's EPS of $0.62. The revenue increased by $315 million year-over-year, driven…
Earnings analysis · 10-Q
ADM earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
ADM posted a materially stronger Q2: revenue rose 7.2% year over year to $22.681 billion, GAAP EPS increased to $1.87 from $0.45, and gross margin expanded to approximately 8.4% from 6.5%. The improvement was led by…
Read full summary
ADM posted a materially stronger Q2: revenue rose 7.2% year over year to $22.681 billion, GAAP EPS increased to $1.87 from $0.45, and gross margin expanded to approximately 8.4% from 6.5%. The improvement was led by crushing and biofuel-related margins, with all three operating segments delivering higher profit despite lower Nutrition revenue. The principal offset is cash conversion: six-month operating cash flow declined to $1.3 billion from $4.0 billion as inventories, receivables, segregated investments, and other current assets consumed working capital.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.87
- Gross margin
- 8.4%
What stood out
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Revenue and EPS accelerated sharply
Q2 revenue increased $1.515 billion year over year to $22.681 billion (+7.2%) and rose from $20.490 billion in Q1 2026 (+10.7%). GAAP diluted EPS was $1.87, versus $0.45 in Q2 2025 and $0.62 in Q1 2026.
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Gross-margin expansion drove earnings
Gross profit rose $565 million, or 41%, to $1.9 billion. This implies a gross margin of approximately 8.4%, above 6.5% in Q2 2025 and 6.0% in Q1 2026.
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Oilseeds and crushing delivered the upside
Ag Services and Oilseeds operating profit more than doubled to $867 million from $379 million, led by Crushing profit of $363 million versus $33 million. Segment revenue increased $1.647 billion to $17.916 billion.
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Profit growth was broad based
All three reportable segments increased operating profit: Ag Services and Oilseeds by $488 million, Carbohydrate Solutions by $74 million, and Nutrition by $58 million. Total segment operating profit rose $620 million to $1.450 billion.
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Positive cash generation after capex
Six-month operating cash flow was $1.3 billion, and property, plant and equipment additions were $466 million, implying $834 million of cash flow after capex. Capex represented approximately 1.1% of six-month revenue of $43.171 billion.
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Liquidity capacity remains strong
Liquidity remained substantial at $11.1 billion at June 30, including $1.1 billion of cash and cash equivalents and $10.0 billion of unused credit capacity. Commercial paper outstanding was only $30 million.
What to watch
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Working-capital cash conversion weakened
Six-month operating cash flow fell to $1.3 billion from $4.0 billion, as working-capital movements turned unfavorable. Inventory changes used $298 million of cash versus a $2.2 billion source in the prior-year period, while receivables used $379 million versus a $197 million source.
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Nutrition sales and volumes remain pressured
Nutrition revenue decreased $91 million year over year to $1.902 billion, including a $95 million impact from lower sales volumes. Management cited portfolio actions and formation of the Akralos joint venture; the prior-year quarter also included a $55 million contract-cancellation benefit.
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Wilmar and timing effects temper results
Within Ag Services and Oilseeds, Wilmar operating profit fell to $60 million from $77 million. In addition, the six-month period included approximately $200 million of net negative mark-to-market and timing impacts in Refinined Products and Other and Crushing.
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Higher near-term purchase commitments
Purchase obligations increased to $16.2 billion at June 30, 2026 from $13.8 billion at December 31, 2025, with $13.5 billion expected to be paid within 12 months. This raises funding needs in a commodity-price-sensitive working-capital business.
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No formal risk-factor update disclosed
No new or revised risk factors were disclosed in Item 1A; the filing directs investors to the 2025 Form 10-K risk factors. Separately, management identifies commodity-price, foreign-exchange, equity-price, and interest-rate exposure, while Q2 cost of products sold rose $950 million with higher commodity and freight costs.
Management's outlook
The 10-Q MD&A does not provide a quantitative earnings or revenue outlook. It states that operating cash flow, $1.1 billion of cash, and unused credit lines are expected to meet ongoing liquidity requirements for at least the next 12 months.
Earlier filings 4
10-K · February 17, 2026
ADM positions itself as an integrated global agricultural supply‑chain manager and processor focused on food, feed, fuel and industrial ingredients, organized into three reportable segments (Ag Services & Oilseeds;…
10-Q · November 4, 2025
ADM reported Q3 revenue of $20,372 million, up $435 million versus Q3 2024, while diluted EPS rose to $0.22 from $0.04 a year ago. Gross profit and margins contracted (gross profit $1,270M vs $1,365M; gross margin ~6.2%…
10-K · February 20, 2025
ADM’s 10-K emphasises a sustainability-driven growth strategy built on three reportable segments (Ag Services & Oilseeds, Carbohydrate Solutions, Nutrition), broad upstream origination and downstream processing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.