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ADM reported third-quarter revenue of $22.3 billion, up from $20.4 billion a year earlier, and diluted earnings per share of $1.70, compared with $0.22. Its filing attributed the revenue increase mainly to higher prices for oils, soybeans and biodiesel, partly offset by lower soybean and wheat volumes.
The filing said improved North American crushing margins and biodiesel margins lifted Ag Services and Oilseeds, while ethanol margins and policy incentives helped Carbohydrate Solutions. Nutrition operating profit rose to $134 million, up 3% from a year earlier, as animal nutrition improvements offset lower human nutrition results.
ADM reported a gross margin of 8.44%, compared with 6.23% a year earlier, and an operating margin of 4.21%, compared with 1.95%. The filing noted that the prior-year quarter included impairment, exit and restructuring costs, penalty charges and revaluation losses.
Free cash flow fell to $489.0 million from $1.6 billion. For the first nine months, the filing attributed lower operating cash flow primarily to changes in working capital, including an inventory-related cash outflow as commodity prices and volumes rose.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $22.3 billion | $20.4 billion | 9.64% |
| Diluted EPS | $1.70 | $0.22 | 672.7% |
| Gross margin | 8.44% | 6.23% | 2.2 percentage points |
| Operating margin | 4.21% | 1.95% | 2.3 percentage points |
| Free cash flow | $489.0 million | $1.6 billion | −68.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.84 | $1.42 | Beat by 29.6% |
| Revenue | $22.7 billion | $22.4 billion | Beat by 1.37% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Juan Luciano attributed the quarter’s improvement to a favorable biofuels environment, ADM’s North American footprint and execution. CFO Monish Patolawala said North American crushing benefited from domestic demand tied to renewable fuel policy, higher global energy prices and soybean meal demand; in South America, he said delayed biofuel policy changes pressured crush margins.
Patolawala said ethanol margins and policy incentives more than offset pressure on liquid sweetener volumes and margins. In nutrition, he said progress in flavors and recovery at the Decatur East plant were offset by unplanned downtime, inflation and softness in biotics. Luciano said ADM had identified the plant problem and was fixing it.
Asked about the quarter ahead, Luciano said ADM still expected soybean purchases by China, although market and execution factors would affect the outcome. Patolawala said the outlook also assumes that most negative mark-to-market and timing impacts carried from the first nine months reverse in the fourth quarter. He said flavors would be in a seasonal low and the affected nutrition plant would ramp up gradually.
Discussing next year, Luciano said the market structure looked similar to 2026 and that he expected biofuels demand and margins to remain favorable, though interest costs would rise. He also said ADM expected nutrition to grow in 2027.
On investment, Luciano said ADM was using existing fermentation capacity and customer-backed applications to develop alternatives for products including egg, whey and pet food proteins. Asked about the financial impact of ADM’s carbon removal initiative in Nebraska, he said the market was nascent and he was “going to be shy on putting a number out there for 2027” while conditions developed.
Guidance
ADM raised its 2026 adjusted EPS guidance to $5.50 to $5.80 from $5.15 to $5.60. Patolawala said the outlook reflected results through the first nine months and expectations for the fourth quarter.
ADM lowered its 2026 capital expenditure range to $1.2 billion to $1.3 billion from $1.3 billion to $1.5 billion. Patolawala also raised the expected 2026 net benefit from Section 45Z clean fuel incentives to approximately $350 million from approximately $250 million.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income, 45z Net Benefit | Q4 FY2026 | ADM expects its net 45Z benefit to be a little lower in Q4 FY2026 than in Q3. | — | — |
| Operating income, Ag Services | Q4 FY2026 | ADM expects ag services operating profit to be higher sequentially in Q4 FY2026. | — | — |
| Operating income, Nutrition | FY2027 | ADM expects nutrition operating profit to grow in FY2027 versus FY2026. | — | — |
| Operating expenses, Corporate | FY2026 | ADM expects corporate costs to be higher in FY2026 than in FY2025. | — | — |
| Operating income, Nutrition | Q4 FY2026 | ADM expects good year-over-year operating profit growth in nutrition in Q4 FY2026. | — | — |
| Operating income, 45z Net Benefit | FY2026 | $350.0 million | — | New |
| Operating income, Crushing | Q4 FY2026 | ADM expects strong year-over-year operating profit growth in crushing in Q4 FY2026. | — | — |
| Capex | FY2026 | $1.2 billion–$1.3 billion | $1.3 billion–$1.5 billion | Cut |
| EPS, non-GAAP | FY2026 | $5.50–$5.80 | $5.15–$5.60 | Raised |
| Operating income, All Segments | Q4 FY2026 | ADM expects year-over-year operating profit improvement in all segments in Q4 FY2026. | — | — |
| Operating expenses | 2025-2030 | $500.0 million–$750.0 million | — | New |
| EPS | FY2026 | $5.15–$5.60 | — | New |