ADM Boosts 2026 Profit Forecast on Strong Crop Margins

Archer-Daniels-Midland (ADM) has raised its 2026 profit forecast after reporting strong crop processing margins and favorable U.S. biofuels policies.

The company's second-quarter earnings beat Wall Street estimates, with an adjusted profit of $1.84 per share for the three months ended June 30, topping analysts' average estimate of $1.44.

ADM attributes its improved performance to soaring energy prices triggered by the Iran war, which swelled margins for producing corn-based ethanol fuel and crushing soybeans for use in crop-based diesel.

The company's largest business segment, ag services and oilseeds, saw a 129% jump in operating profit from the same quarter a year earlier, driven by expanded margins after the U.S. government ordered refiners to blend a record amount of biofuels into their gasoline and diesel this year and next.

ADM's shares rose 3.8% in premarket trading following the announcement, with the company raising its 2026 adjusted earnings forecast to between $5.15 and $5.60 per share, compared to a prior forecast of $4.15 and $4.70 per share.