Agricultural machinery maker AGCO's Q1 results beat despite tariff impact

Agco

05/05/2026 12:46

Overview

Agricultural machinery maker's Q1 net sales rose 14%, beating analyst expectations

Adjusted EPS for Q1 was $0.94, beating analyst consensus

Company to begin $350 mln share repurchases in Q2 2026

Outlook

AGCO expects 2026 net sales between $10.5 bln and $10.7 bln

Company projects 2026 adj operating margins of 7.5% to 8.0%

AGCO targets 2026 EPS at approximately $6.00

Result Drivers

EUROPE GROWTH - Higher unit volumes and sales growth in high-horsepower tractors, especially in Germany and the UK, drove increased sales and operating income in the region

LATIN AMERICA WEAKNESS - Lower sales across all product categories and negative pricing led to a 30% regional sales decline and lower operating income

TARIFF-RELATED INPUT COSTS - Higher input costs linked to tariffs reduced operating income in North America despite higher sales

Company press release: ID:nPn8sv0S0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$2.34 bln
$2.26 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$0.94
$0.44 (14 Analysts)
Q1 EPS
$0.76
Q1 Net Income Attributable To AGCO Corp
$55 mln
Q1 Gross Profit
$581.40 mln
Q1 Operating Income
$80.70 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

Wall Street's median 12-month price target for AGCO Corp is $128.50, about 6% above its May 4 closing price of $121.28

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)