Archer Daniels Q2 Earnings Beat on Crushing and Ethanol Strength

Total segment operating profit increased 75% year over year to $1.5 billion, reflecting broad-based growth across all three operating segments.

We note that shares of this Zacks Rank #2 (Buy) company have gained 22.8% in the past six months compared with the industry’s 6.6% growth.

Image Source: Zacks Investment Research

Archer Daniels' Revenue Mix Shows AS&O Strength

Ag Services and Oilseeds revenues increased 10.1% year over year to $17.9 billion. Carbohydrate Solutions revenues declined 1.3% to $2.8 billion, while Nutrition revenues fell 4.6% to $1.9 billion. Other Business revenues decreased 5.4% to $106 million. The Zacks Consensus Estimate for revenues is pegged at $17.5 billion for Ag Services and Oilseeds, $2.9 billion for Carbohydrate Solutions and $2 billion for Nutrition.

The company processed 9.5 million metric tons of oilseeds, up 4.7% from the prior-year quarter and surpassed the Zacks Consensus Estimate of 9.3 million metric tons. Corn processing volumes rose 2.6% to 4.7 million metric tons. Higher asset utilization supported the improvement in global oilseed volumes.

ADM's Oilseeds Profit More Than Doubles

Ag Services and Oilseeds operating profit surged 129% to $867 million. Results included roughly $100 million of net positive mark-to-market and timing impacts, mainly within Crushing. Margin expansion in Ag Services and North American crushing provided the primary lift.

Ag Services operating profit climbed 159% to $293 million as ADM leveraged its global asset network and benefited from increased soybean exports and the return of its Barcarena, Brazil, terminal to full operations. Crushing profit substantially jumped to $363 million from $33 million, supported by stronger biofuel margins, elevated energy prices and record meal exports from Brazil and the United States.

Archer Daniels Gains From Strong Ethanol Margins

Carbohydrate Solutions operating profit increased 22% year over year to $411 million. Robust North American ethanol margins, policy incentives, elevated energy prices and lower U.S. corn prices improved ethanol’s economics relative to competing blendstocks. These conditions supported higher domestic blend rates and favorable industry exports.

Starches and Sweeteners operating profit rose 7% year over year to $326 million as stronger wet-milling ethanol margins offset lower liquid sweetener volumes and margins. Vantage Corn Processors’ profit increased 158% year over year to $85 million, aided by strengthening dry-milling ethanol margins and effective risk management.

ADM's Nutrition Recovery Builds Momentum

Nutrition operating profit advanced 51% year over year to $172 million, with improvement across Human Nutrition and Animal Nutrition. Human Nutrition operating profit increased 51% to $139 million, driven by Flavors growth, seasonal momentum and continued progress at the Decatur East plant.

Animal Nutrition operating profit grew 50% to $33 million. The increase reflected operational improvements and benefits from portfolio actions completed during 2025. The segment’s performance extended ADM’s recovery beyond its commodity-processing businesses.

Archer Daniels’ Other Financials

The company ended the quarter with cash and cash equivalents of $1.1 billion, long-term debt, including current maturities, of $7.6 billion, and shareholders’ equity of $23.6 billion. As of June 30, 2026, ADM generated $1.3 billion in cash from operating activities. It paid dividends of $510 million in the reported quarter.

Archer Daniels Raises Its 2026 Outlook

ADM raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment.

Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.

More Stocks to Consider in the Consumer Staples Space

Darling Ingredients Inc. DAR, which is a global developer and producer of sustainable natural ingredients, 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 Darling Ingredients' current financial-year sales indicates growth of 12.4% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently carries a Zacks Rank of 2. 

The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters. 

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number. 

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want 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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research