ADM Beats Profit Expectations and Raises Its 2026 Outlook
Direct answer
Archer-Daniels-Midland, known as ADM, reported stronger profit than analysts expected for the third quarter of 2026 and raised its profit outlook for the full year. The grain merchant and processor said stronger oilseed processing margins helped its results.
What happened
ADM reported adjusted earnings of $1.77 per share for the quarter ended September 30, 2026. Analysts had expected $1.60 per share on average, according to data compiled by LSEG and reported by Reuters. ADM also reported net earnings of $821 million and adjusted net earnings of $858 million. Revenue rose to $22.34 billion, up from $20.37 billion a year earlier.
The company raised its 2026 adjusted earnings per share forecast to a range of $5.50 to $5.80, up from its earlier range of $5.15 to $5.60. ADM said its own results release, reported by Business Wire, supports the higher outlook.
The biggest lift came from its Agricultural Services and Oilseeds business, its largest segment. Operating profit in that segment more than doubled to $778 million. Inside that business, the crushing unit, which turns oilseeds and grains into products for food, animal feed and industrial use, reported profit of $311 million, up from $13 million a year earlier.
Reuters reported that corn and soybean prices have risen since the war on Iran started, which pushed farmers to sell grain they had stored from last year’s harvest. Higher crude oil prices also lifted demand for biofuel feedstocks, which supported prices for crops such as corn and soybeans used to make renewable fuels.
Why it matters for beginners
ADM sits between farms and the food and fuel products people use every day. It buys, stores, moves and processes crops. When the gap between the cost of raw crops and the price of processed products widens, a term often called the processing margin, ADM can earn more from the same volume of crops.
A raised outlook matters because it shows what company managers expect, not just what already happened. ADM said its year to date performance and its fourth quarter outlook support another increase to its full year guidance. That is a sign managers see demand holding up, at least for now. It does not mean prices for food or fuel will move in one direction, because many other factors affect those prices.
For a beginner investor, this is also a useful example of how earnings reports work. Analysts set an expectation before results arrive. The actual result is then compared with that expectation. ADM beat the profit expectation, even though some revenue estimates were higher than the $22.34 billion it reported. One quarter does not tell the whole story, and a single company result is not a guide to the whole market.
The link to energy markets is also worth noting. ADM’s results were helped by biofuel demand, which connects farming to oil prices. When oil prices move sharply, as they have in recent days, it can change demand for renewable fuel feedstocks. Readers can follow that energy backdrop in our earlier report on oil prices plunging over 7 percent as Iran talks raised hopes of easing supply fears.
What to watch next
Watch ADM’s fourth quarter results to see whether operating profit improves across all three of its segments, as managers expect. Watch corn and soybean prices, and whether farmers keep selling stored grain at the faster pace seen in the third quarter. Watch crude oil prices and biofuel demand, because both affect the processing margins that drove this quarter’s improvement. Finally, watch whether other food and agriculture companies report a similar pattern, which would suggest a wider trend rather than a result unique to ADM.
FAQ
What does ADM do?
ADM is a grain merchant and processor based in Chicago. It trades, transports, stores and processes crops such as corn and soybeans into food, animal feed and industrial products.
What is adjusted earnings per share?
Adjusted earnings per share is profit per share after removing some one off items, so it gives a cleaner view of regular business performance. ADM reported adjusted earnings of $1.77 per share, compared with $1.60 expected.
What is a processing margin?
A processing margin is the difference between the cost of a raw crop and the price of the processed product made from it. A wider margin usually means more profit from processing.
Why did ADM raise its outlook?
ADM said stronger oilseed processing margins, a constructive biofuels environment, its North American footprint and good execution helped results, and its year to date performance and fourth quarter outlook support a higher full year range.
