Archer-Daniels-Midland (ADM) shares hit a 52-week high on Tuesday after the agricultural giant reported better-than-expected first-quarter results and raised its full-year guidance. The stock was up 5.53% at $80.48 at the time of publication.
The company reported adjusted earnings per share of 71 cents, beating the analyst consensus estimate of 66 cents. Quarterly sales of $20.49 billion also outpaced the Street view of $20.22 billion. Gross profit rose to $1.22 billion from $1.18 billion a year ago, and earnings before income taxes came in at $384 million, up from $353 million in the prior-year quarter.
Segment performance was a mixed bag. The Ag Services & Oilseeds (AS&O) segment posted operating profit of $273 million, down 34% from a year ago. But Carbohydrate Solutions more than made up for it with operating profit of $356 million, up 48%. Nutrition also delivered a strong quarter, with operating profit of $135 million, up 42%. The company ended the quarter with $591 million in cash and equivalents.
Looking ahead, ADM raised its fiscal 2026 adjusted EPS guidance to a range of $4.15 to $4.70, up from the prior range of $3.60 to $4.25. The new midpoint of $4.425 is above the analyst estimate of $4.23.
Despite the strong earnings and guidance, Wall Street remains cautious. The stock carries a Hold rating with an average price target of $67.25. Recent analyst moves include Jefferies raising its target to $77.00 (Hold), Barclays lifting its target to $77.00 (Equal-Weight), and JPMorgan bumping its target to $65.00 (Underweight).
With the stock now trading well above the average price target, the question is whether the earnings momentum can sustain the rally. For now, investors are cheering the beat and the raised outlook.
