Archer-Daniels-Midland Company (NYSE:ADM), a leading player in the global grain and agricultural services sector, experienced a notable decline in its stock price on Tuesday after unveiling its fourth-quarter financial results. While the company delivered adjusted earnings that surpassed analyst expectations, revenue figures failed to meet consensus estimates, reflecting an uneven demand landscape marked by complex trade dynamics and regulatory uncertainties.
ADM reported adjusted earnings per share of 87 cents for the quarter, exceeding the projected 80 cents anticipated by analysts. However, quarterly revenue reached $18.556 billion, which was below the Wall Street consensus estimate of $21.120 billion. This revenue shortfall underscores ongoing challenges in the company’s operating environment.
Chief Executive Officer Juan Luciano articulated the factors underpinning the company’s financial performance, citing a notably dynamic global trade landscape throughout 2025. He also highlighted persistent uncertainty surrounding U.S. biofuel policy as a critical hindrance that has complicated the operating context for ADM. The combination of these elements has impacted both business results and market confidence.
Breaking down performance by segment, the Ag Services and Oilseeds division reported revenues of $14.012 billion, down from $16.874 billion during the prior-year quarter. Operating profit in this segment diminished by 31% to $444 million compared to the preceding year.
In the Carbohydrate Solutions segment, revenue stood at $2.641 billion, a slight decline from $2.750 billion a year ago. Operating profit contracted 6% from last year’s comparable period to $299 million. The Nutrition segment maintained revenue stability with $1.786 billion, consistent with the prior year, yet its operating profit decreased by 11% to $78 million.
On a broader basis, ADM’s gross profit decreased to $1.213 billion from $1.358 billion recorded in the same period a year earlier. Similarly, earnings before income taxes declined, registering $476 million in the fourth quarter of 2025 compared to $667 million in the equivalent period of 2024.
The company closed the quarter with liquidity reflecting cash and cash equivalents totaling $1.015 billion.
In terms of shareholder returns, Archer-Daniels-Midland declared a cash dividend for shareholders of 52 cents per share, rising modestly from the previous 51 cents. This dividend will be payable on March 10.
Looking ahead, ADM projected its fiscal 2026 adjusted earnings per share to fall within a range of $3.60 to $4.25, slightly below the consensus analyst estimate of $4.24. CEO Luciano expressed confidence in the company’s strategic initiatives to improve cost efficiency, noting an expected aggregate cost savings of $500 million to $750 million over the next three to five years commencing in 2025.
Luciano further stated, “We remain on track to achieve $500 to $750 million of aggregate cost savings over the next three to five years, beginning in 2025, and we believe increased clarity on biofuel policy combined with the evolution of global trade should support a more constructive operating environment for us in 2026.” This cautious optimism aligns with operational adjustments aimed at mitigating headwinds.
Despite the earnings beat, the market responded negatively, with ADM’s share price declining 3.39% to $65.77 as of Tuesday’s trading session, according to Benzinga Pro data. The reaction illustrates investor concerns surrounding revenue weakness and broader macroeconomic uncertainties faced by the firm.