ADM US S&P 500Russell 1000 Earnings call · transcribed from the recording
Archer Daniels Midland (ADM) · Q2 2026 results and valuation
Share price: $70.92 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 5 May 2026
Net income up 204.7% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+204.7%
Net income vs Q1 2026
Guidance raised
Net income 908.0M vs 298.0M
Revenue +10.7%
Against the same quarter last year (Q2 2025) it is +314.6%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 56% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance ↑
Earlier today, Archer Daniels Midland raised its outlook for 2026 adjusted EPS to a range of $5.15 to $5.60, up from the previous range of $4.15 to…
Valuation
Is Archer Daniels Midland undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −7.5% growth a year (3-year revenue growth), the model's fair value is $15.09 a share — the stock trades 370% above it. Today's price assumes 14.0% growth a year.
Current price
$70.92
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+14.0% for 10 yrs
Fair value / share
$15.09
Buy below
$11.32
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Constructive biofuels environment
Source quote
“To summarize, in AS&O, our team executed well in a complex and volatile environment, strategically leveraging ADM's global asset footprint... ...in EMEA, and we delivered a record quarter for Flavors in Asia Pacific. In Carb Solutions, ethanol production rose in a strong margin environment, and we sequestered 337,000 metric tons of carbon this quarter.”
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Guidance
During the first half of 2026, Archer Daniels Midland invested $466 million in its footprint and maintain its expectations of full-year 2026 CapEx being in the range of $1.3 billion...
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Figure
Archer Daniels Midland's trailing four-quarter adjusted ROIC was 7.8% and cash flow from operations before working capital changes was $1.8 billion for the first half...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“A fifth-generation Illinois farmer, Jeff is a proven industry leader whose appointment complements an already strong management team and builds on ADM's momentum around driving innovation and delivering on our...”
“In summary, the second quarter reflected strong commercial and operational execution by the team in a complex, but constructive global trade and biofuels environment with solid growth momentum in nutrition,...”
“And third, we expect Nutrition to continue improving operating performance while capturing growth opportunities.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 22.68B | 20.49B | +10.7% | 21.17B | +7.2% |
| Gross profit | 1.94B | 1.22B | +58.3% | 1.37B | +41.2% |
| Operating income | 1.09B | 384.0M | +183.3% | 279.0M | +290.0% |
| Net income | 908.0M | 298.0M | +204.7% | 219.0M | +314.6% |
| EPS | 1.87 | 0.62 | +201.6% | 0.45 | +315.6% |
| P/E today 13.7 | 20.9 | 32.5 | −11.6 | 22.9 | −2.0 |
Topics
Most discussed now
- Archer Daniels Midland has prepared presentation slides to supplement its remarks on the call today, which are posted to the Investor…
- Archer Daniels Midland expects the favorable margin backdrop across its crushing and ethanol businesses to hold throughout the second half…
- During the second quarter, Archer Daniels Midland paid its 378th consecutive quarterly dividend, and it remains steadfast in its commitment…
- For the Crushing subsegment, operating profit was $363 million for the quarter, an increase of approximately $330 million from the...
- Jeff brings more than 30 years of experience driving growth, operational excellence and commercial success.
Faded since Q1 2026
- Fading Archer Daniels Midland's Ag Services business achieved higher North American export activity, which included increased shipments of…
- Fading The RVO drives demand for corn, soy and other domestic feedstocks, and it supports a reliable domestic fuel supply chain...
- Fading Operating performance was robust during the quarter as Archer Daniels Midland's team advanced its company priorities, and its crushing and…
- Fading That's Archer Daniels Midland's expectation, if you will, for the second quarter that those dynamics will be maintained.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Current report · SEC 8-K · routine
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K