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ADM raised its 2026 adjusted EPS outlook to $5.15-$5.60, citing stronger operating results.
Archer Daniels Midland Company’s (ADM - Free Report) Oilseeds Processing business performed significantly better in the second quarter of 2026, with operating profit increasing 129% from the year-ago period. The business more than doubled its operating profit. Global oilseed processing volumes also increased nearly 5%, reflecting improved asset utilization. This improvement was supported by stronger processing margins, better business execution and favorable market conditions. Strong soybean meal demand, particularly from the pork and poultry industries, further supported results.
ADM’s Oilseeds business benefits from its broad global processing network and exposure to demand for vegetable oils, protein meal and other agricultural products. Improved processing economics and stronger margins can provide a meaningful boost to profitability when market conditions are favorable. The company’s focus on productivity and cost savings is also expected to support margins and partially offset inflationary and other operating pressures.
Archer Daniels processes crops such as soybeans into products including vegetable oils and protein meal, which is widely used as animal feed. The outlook remains constructive but depends on several market factors. ADM expects favorable crushing and ethanol margins to continue supporting results in the second half of 2026. North American crushing was about 90% locked for the third quarter but only around 30% for the fourth quarter, leaving greater exposure to future margin movements. Management also expects China’s soybean purchases from North America to support Ag Services.
Therefore, while the 129% increase in Oilseeds operating profit is a significant positive for ADM, the company’s ability to sustain these gains will depend on how processing margins and commodity-market conditions develop in the coming quarters. Cost savings and operational improvements may support ADM’s performance, while favorable market conditions could provide an additional boost. Reflecting its stronger operating results, ADM raised its full-year 2026 adjusted EPS outlook to $5.15-$5.60 from the previous range of $4.15-$4.70.
ADM’s Peers
Dole plc (DOLE - Free Report) is benefiting from resilient demand for fresh produce, disciplined pricing and improved operational execution. DOLE is strengthening its vertically integrated supply chain by investing in farming operations, packing facilities, ripening centers and logistics infrastructure. These investments are helping enhance efficiency, maintain product quality and improve supply reliability. Dole is also expanding its presence in high-growth categories, such as cherries and citrus, by increasing production capacity and upgrading packing facilities to better capitalize on rising customer demand.
Mission Produce (AVO - Free Report) is leveraging its vertically integrated model and multi-origin sourcing network to support volume growth, margins and supply reliability. Resilient avocado demand remains another growth driver for AVO, with U.S. retail volume rising despite higher prices. The Calavo acquisition is further expanding Mission Produce’s customer reach, sourcing flexibility, packing capacity and prepared-foods presence.
ADM’s Price Performance, Valuation and Estimates
Archer Daniels shares have gained 14.8% in the past six months compared with the industry’s ’s 1.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ADM trades at a forward price-to-earnings ratio of 14.96X compared with the industry’s average of 14.37X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADM’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 52.2% and 3.5%, respectively. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days.
View the Zacks #1 Rank List
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Archer Daniels' Oilseeds Profit Soars 129%: Can Gains Persist?
Key Takeaways
Archer Daniels Midland Company’s (ADM - Free Report) Oilseeds Processing business performed significantly better in the second quarter of 2026, with operating profit increasing 129% from the year-ago period. The business more than doubled its operating profit. Global oilseed processing volumes also increased nearly 5%, reflecting improved asset utilization. This improvement was supported by stronger processing margins, better business execution and favorable market conditions. Strong soybean meal demand, particularly from the pork and poultry industries, further supported results.
ADM’s Oilseeds business benefits from its broad global processing network and exposure to demand for vegetable oils, protein meal and other agricultural products. Improved processing economics and stronger margins can provide a meaningful boost to profitability when market conditions are favorable. The company’s focus on productivity and cost savings is also expected to support margins and partially offset inflationary and other operating pressures.
Archer Daniels processes crops such as soybeans into products including vegetable oils and protein meal, which is widely used as animal feed. The outlook remains constructive but depends on several market factors. ADM expects favorable crushing and ethanol margins to continue supporting results in the second half of 2026. North American crushing was about 90% locked for the third quarter but only around 30% for the fourth quarter, leaving greater exposure to future margin movements. Management also expects China’s soybean purchases from North America to support Ag Services.
Therefore, while the 129% increase in Oilseeds operating profit is a significant positive for ADM, the company’s ability to sustain these gains will depend on how processing margins and commodity-market conditions develop in the coming quarters. Cost savings and operational improvements may support ADM’s performance, while favorable market conditions could provide an additional boost. Reflecting its stronger operating results, ADM raised its full-year 2026 adjusted EPS outlook to $5.15-$5.60 from the previous range of $4.15-$4.70.
ADM’s Peers
Dole plc (DOLE - Free Report) is benefiting from resilient demand for fresh produce, disciplined pricing and improved operational execution. DOLE is strengthening its vertically integrated supply chain by investing in farming operations, packing facilities, ripening centers and logistics infrastructure. These investments are helping enhance efficiency, maintain product quality and improve supply reliability. Dole is also expanding its presence in high-growth categories, such as cherries and citrus, by increasing production capacity and upgrading packing facilities to better capitalize on rising customer demand.
Mission Produce (AVO - Free Report) is leveraging its vertically integrated model and multi-origin sourcing network to support volume growth, margins and supply reliability. Resilient avocado demand remains another growth driver for AVO, with U.S. retail volume rising despite higher prices. The Calavo acquisition is further expanding Mission Produce’s customer reach, sourcing flexibility, packing capacity and prepared-foods presence.
ADM’s Price Performance, Valuation and Estimates
Archer Daniels shares have gained 14.8% in the past six months compared with the industry’s ’s 1.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ADM trades at a forward price-to-earnings ratio of 14.96X compared with the industry’s average of 14.37X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ADM’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 52.2% and 3.5%, respectively. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days.
Image Source: Zacks Investment Research
Archer Daniels currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.