AGCO (NYSE:AGCO) Releases Earnings Results, Misses Estimates By $0.03 EPS

AGCO (NYSE:AGCO) announced its earnings results on Thursday. The industrial products company reported $1.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.46 by ($0.03), FiscalAI reports. The business had revenue of $2.61 billion for the quarter, compared to analysts’ expectations of $2.75 billion. AGCO had a return on equity of 10.09% and a net margin of 5.15%.The business’s revenue was down 1.0% on a year-over-year basis. During the same quarter last year, the business posted $1.35 earnings per share. AGCO updated its FY 2026 guidance to 5.500-5.750 EPS.

Here are the key takeaways from AGCO’s conference call:

• Second-quarter adjusted EPS rose to $1.43 from $1.35, despite sales falling 1% year over year to approximately $2.6 billion. AGCO cited pricing, market-share gains and business-optimization savings as partial offsets to lower volumes and higher input costs.
• AGCO lowered its 2026 outlook, now expecting net sales of $10.1–$10.2 billion and adjusted EPS of $5.50–$5.75. The revisions reflect weaker demand expectations in Western Europe, Brazil and North American small agriculture, as well as lower pricing and currency assumptions.
• Industry demand remains soft, with AGCO forecasting large agricultural equipment in North America down about 15%, Western Europe roughly flat and Brazil down 5%–10%. Elevated financing and input costs, weather uncertainty and tighter credit are keeping farmers cautious.
• North America delivered approximately 20% constant-currency sales growth and strong market-share gains, particularly in high-horsepower tractors, while pricing increased about 3.5%. Dealer inventories also declined across all major regions, improving channel health and positioning AGCO to align production more closely with retail demand.
• Gross tariff-related costs are now expected to be approximately $115 million in 2026, partly offset by $22 million of refunds recognized in the second quarter. AGCO continues to target free-cash-flow conversion of 75%–100% of adjusted net income and repurchased approximately $345 million of shares during the quarter.

AGCO Price Performance

NYSE:AGCO traded down $4.73 during trading hours on Friday, hitting $102.40. The company’s stock had a trading volume of 1,138,763 shares, compared to its average volume of 794,194. AGCO has a 52-week low of $99.21 and a 52-week high of $143.78. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.57 and a current ratio of 1.32. The business’s 50-day moving average is $114.93 and its two-hundred day moving average is $118.53. The company has a market capitalization of $7.41 billion, a PE ratio of 14.16, a PEG ratio of 0.79 and a beta of 1.07.

AGCO Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, August 14th. AGCO’s dividend payout ratio is currently 11.57%.

Trending Headlines about AGCO

Here are the key news stories impacting AGCO this week:

• Positive Sentiment: Truist Financial reaffirmed its Buy rating, while maintaining a $135 price target. Although the target was reduced from $159, it still indicates substantial potential upside from recent levels. Benzinga analyst rating report
• Positive Sentiment: Zacks Research made modest upward revisions to several longer-term earnings estimates, including FY2026 EPS to $5.95 from $5.91, Q1 2028 EPS to $2.00 from $1.98, and FY2028 EPS to $9.19 from $9.16. These revisions suggest some confidence in an eventual earnings recovery. MarketBeat AGCO estimates
• Neutral Sentiment: Wells Fargo lowered its price target to $117 from $132 and adopted an Equal Weight rating. The revised target remains above the recent trading level, but the downgrade reflects more limited confidence in near-term outperformance. Benzinga Wells Fargo report
• Negative Sentiment: AGCO’s second-quarter adjusted EPS was $1.43, below the $1.48 consensus estimate, while revenue of $2.61 billion missed expectations of approximately $2.74 billion. Sales fell 1% year over year, highlighting softer operating conditions. AGCO second-quarter results
• Negative Sentiment: Management cut 2026 adjusted EPS guidance to approximately $5.50–$5.75, below the roughly $5.99 consensus, and reduced revenue guidance to $10.1–$10.2 billion versus expectations near $10.6 billion. The company cited weaker farm demand, margin pressure and tariff costs. AGCO outlook report
• Negative Sentiment: Zacks reduced its FY2027 EPS estimate to $7.63 from $7.97 and lowered several 2027 quarterly forecasts, reinforcing concerns that the agricultural-equipment downturn could persist beyond 2026. Zacks AGCO earnings report

Analyst Ratings Changes

AGCO has been the subject of a number of recent research reports. Weiss Ratings cut shares of AGCO from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 27th. Wall Street Zen lowered AGCO from a “buy” rating to a “hold” rating in a report on Saturday. DA Davidson set a $151.00 target price on AGCO in a report on Friday. Oppenheimer cut their price target on AGCO from $134.00 to $127.00 and set an “outperform” rating for the company in a research note on Friday. Finally, UBS Group restated a “neutral” rating and issued a $123.00 target price on shares of AGCO in a research note on Sunday, May 10th. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $123.25.

Insider Activity at AGCO

In other news, major shareholder & Farm Equipment Ltd Tractors sold 422,590 shares of the company’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $123.28, for a total transaction of $52,096,895.20. Following the transaction, the insider directly owned 3,149,820 shares of the company’s stock, valued at $388,309,809.60. This represents a 11.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.62% of the company’s stock.

Institutional Trading of AGCO

Institutional investors have recently added to or reduced their stakes in the stock. UMB Bank n.a. grew its position in AGCO by 16.8% during the fourth quarter. UMB Bank n.a. now owns 759 shares of the industrial products company’s stock worth $79,000 after buying an additional 109 shares during the period. Jones Financial Companies Lllp boosted its stake in shares of AGCO by 29.7% during the 1st quarter. Jones Financial Companies Lllp now owns 650 shares of the industrial products company’s stock worth $61,000 after acquiring an additional 149 shares in the last quarter. Ausdal Financial Partners Inc. grew its holdings in shares of AGCO by 7.5% in the 4th quarter. Ausdal Financial Partners Inc. now owns 2,402 shares of the industrial products company’s stock worth $251,000 after acquiring an additional 167 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of AGCO by 3.9% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,634 shares of the industrial products company’s stock worth $496,000 after acquiring an additional 174 shares during the period. Finally, Empowered Funds LLC increased its stake in AGCO by 3.1% in the 1st quarter. Empowered Funds LLC now owns 5,876 shares of the industrial products company’s stock valued at $544,000 after purchasing an additional 176 shares in the last quarter. Hedge funds and other institutional investors own 78.80% of the company’s stock.

About AGCO

AGCO Corporation is a global leader in the design, manufacture and distribution of agricultural machinery and precision farming solutions. Headquartered in Duluth, Georgia, the company markets a diverse portfolio of well-known brands, including Massey Ferguson, Fendt, Challenger, Valtra and GSI, serving farmers and producers in North America, South America, Europe, the Middle East, Africa and Asia Pacific. Through an extensive dealer network, AGCO provides equipment tailored to a broad range of crop and livestock operations.

The company’s product offerings span tractors, combine harvesters, hay and forage tools, application equipment, seeding and tillage implements, as well as grain storage and protein solutions.