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Archer Daniels' Export Strength: Is Ag Services Regaining Momentum?
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Key Takeaways
ADM's Ag Services operating profit rose 26% YoY to $200M in Q1.
ADM benefited from higher soybean and sorghum shipments to China and strong U.S. corn exports.
ADM sees momentum continuing as China resumes normalized North American soybean purchases.
Archer Daniels Midland Company’s (ADM - Free Report) Ag Services business showed encouraging signs of recovery in the first quarter of 2026, supported by stronger export activity across North America. The company benefited from higher shipments of soybeans and sorghum to China, while a robust U.S. corn export program also contributed to improved performance. These factors helped Ag Services operating profit increase 26% year over year to $200 million despite a challenging global trade backdrop. Management also noted that the prior-year comparison was affected by export duties, making this quarter's improvement even more notable. The stronger export performance highlights ADM's ability to capitalize on favorable trade flows and efficiently connect global agricultural supply with demand.
Management believes the momentum could continue through the remainder of the year. As part of its updated outlook, ADM assumes China will resume a more normalized purchasing pattern for North American soybeans, providing additional support to export volumes. The company also continues to leverage its extensive merchandising network to capture trading opportunities created by shifting commodity flows and evolving global demand. Combined with a more constructive biofuels environment, these factors contributed to management raising its full-year adjusted EPS guidance, reflecting growing confidence in the underlying business environment.
The outlook, however, is not without risks. Management acknowledged that global trade policies, tariffs and geopolitical developments remain key variables, particularly regarding China's purchasing behavior later in the year. Nevertheless, ADM believes its diversified global origination, merchandising and logistics capabilities position the company to adapt quickly as trade flows evolve. While external uncertainties persist, the first-quarter performance suggests that Ag Services is benefiting from improving export fundamentals and disciplined execution, providing an important earnings tailwind as ADM pursues stronger growth in 2026.
ADM’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 31.2% in the past six months, outperforming both the industry and the broader Consumer Staples sector, which rose 21.6% and 13.2%, respectively.
ADM Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is ADM a Value Play Stock?
From a valuation standpoint, ADM trades at a forward price-to-earnings ratio of 16.23X, higher than the industry’s average of 15.42X.
ADM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
Fomento Economico Mexicano (FMX - Free Report) participates in the beverage industry through Coca-Cola FEMSA, which is the world’s largest franchise bottler for Coca-Cola products. FMX 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 FMX’s 2026 sales and earnings suggests growth of 17.3% and 130.9%, respectively, from the year-ago reported figures. The company delivered a trailing four-quarter negative earnings surprise of 17%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA has a Zacks Rank of 2.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Archer Daniels' Export Strength: Is Ag Services Regaining Momentum?
Key Takeaways
Archer Daniels Midland Company’s (ADM - Free Report) Ag Services business showed encouraging signs of recovery in the first quarter of 2026, supported by stronger export activity across North America. The company benefited from higher shipments of soybeans and sorghum to China, while a robust U.S. corn export program also contributed to improved performance. These factors helped Ag Services operating profit increase 26% year over year to $200 million despite a challenging global trade backdrop. Management also noted that the prior-year comparison was affected by export duties, making this quarter's improvement even more notable. The stronger export performance highlights ADM's ability to capitalize on favorable trade flows and efficiently connect global agricultural supply with demand.
Management believes the momentum could continue through the remainder of the year. As part of its updated outlook, ADM assumes China will resume a more normalized purchasing pattern for North American soybeans, providing additional support to export volumes. The company also continues to leverage its extensive merchandising network to capture trading opportunities created by shifting commodity flows and evolving global demand. Combined with a more constructive biofuels environment, these factors contributed to management raising its full-year adjusted EPS guidance, reflecting growing confidence in the underlying business environment.
The outlook, however, is not without risks. Management acknowledged that global trade policies, tariffs and geopolitical developments remain key variables, particularly regarding China's purchasing behavior later in the year. Nevertheless, ADM believes its diversified global origination, merchandising and logistics capabilities position the company to adapt quickly as trade flows evolve. While external uncertainties persist, the first-quarter performance suggests that Ag Services is benefiting from improving export fundamentals and disciplined execution, providing an important earnings tailwind as ADM pursues stronger growth in 2026.
ADM’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 31.2% in the past six months, outperforming both the industry and the broader Consumer Staples sector, which rose 21.6% and 13.2%, respectively.
ADM Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is ADM a Value Play Stock?
From a valuation standpoint, ADM trades at a forward price-to-earnings ratio of 16.23X, higher than the industry’s average of 15.42X.
ADM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
Fomento Economico Mexicano (FMX - Free Report) participates in the beverage industry through Coca-Cola FEMSA, which is the world’s largest franchise bottler for Coca-Cola products. FMX 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 FMX’s 2026 sales and earnings suggests growth of 17.3% and 130.9%, respectively, from the year-ago reported figures. The company delivered a trailing four-quarter negative earnings surprise of 17%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA has a Zacks Rank of 2.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.