Archer-Daniels-Midland Co. (ADM) shares climbed Tuesday after the agricultural giant delivered a second-quarter earnings beat that was hard to ignore. The company also raised its full-year profit outlook again, thanks to a biofuels market that just keeps getting better.

Adjusted earnings came in at $1.84 per share, blowing past the $1.44 consensus estimate. Revenue hit $22.7 billion, also ahead of the $21.8 billion analysts were looking for.

The headline number: total segment operating profit jumped 75% year over year to $1.5 billion. Management credited strong execution, favorable biofuels margins, and continued momentum in the Nutrition business.

Ag Services And Oilseeds Lead The Charge

The Ag Services and Oilseeds segment was the star, posting operating profit of $867 million, up 129% from a year ago. Higher asset utilization, strong crush margins, favorable biofuel economics, and better supply chain execution all contributed. Global oilseed processing volumes rose nearly 5% year over year.

Ag Services operating profit soared 159% to $293 million, helped by ADM's global infrastructure, stronger South American operations, and the return of Brazil's Barcarena grain export terminal to full operations.

Crushing operating profit jumped about $330 million to $363 million. The boost came from strong biofuel margins, higher domestic demand following renewable volume obligation policy updates, and elevated global energy prices. Higher energy prices and lower U.S. corn costs made ethanol more competitive, lifting domestic blending demand and exports.

Carbohydrate Solutions And Nutrition Improve

The Carbohydrate Solutions segment reported operating profit of $411 million, up 22% year over year, driven by stronger ethanol margins and policy incentives.

Vantage Corn Processors operating profit increased to $85 million, up $52 million year over year, supported by improved ethanol margins, policy support, and effective risk management.

Nutrition operating profit climbed 51% to $172 million, led by strong Flavors performance, progress at the Decatur East facility, and improvements in Animal Nutrition. Human Nutrition operating profit also rose 51% to $139 million, primarily due to Flavors growth and operational improvements.

Cost Savings On Track

ADM reiterated its goal of delivering $500 million to $750 million in cost savings over three to five years through initiatives focused on finance, technology, automation, and digitization. The company said its "Frictionless Finance" initiative has already cut accounts payable transaction costs by 25% since the start of 2026.

Outlook: Raised Again

ADM raised its fiscal 2026 adjusted earnings guidance to $5.15 to $5.60 per share, up from the prior range of $4.15 to $4.70. The new forecast sits comfortably above the analyst consensus of $4.79.

The company said the improved outlook reflects strong first-half performance, continued business momentum, and expected year-over-year earnings growth in its crushing and ethanol businesses.

CEO Juan Luciano said strong commercial execution and improving Nutrition results, combined with the constructive biofuels environment, gave the company confidence to raise its full-year guidance again.

Management expects second-half operating profit to exceed first-half levels, with the third quarter potentially stronger than the fourth due to seasonal trends in the Flavors business and uncertainty around crush margins.

ADM also said it continues expanding its Natural Colors business to capitalize on growing demand for cleaner-label products, targeting a U.S. market opportunity of about $1 billion and long-term operating profit potential of $80 million to $100 million.

The company increased its expected 2026 net benefit from the 45Z clean fuel tax credit to about $250 million, up from its prior estimate of $150 million, citing continued strength in the biofuels market.

ADM Price Action: Archer-Daniels-Midland shares were up 1.86% at $79.51 at the time of publication on Tuesday.