LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) announced today that its TRISO nuclear fuel has powered Antares Nuclear Inc.’s reactor through the first successful criticality milestone under the Administration’s Executive Order 14301, Reforming Nuclear Reactor Testing at the Department of Energy. BWXT also processed the high assay low enriched uranium (HALEU) feedstock material used to manufacture the Antares TRISO fuel compacts from scrap materials provided by NNSA, underscoring the company’s leadership across the full spectrum of next generation fuel production.
“BWXT is delivering leading-edge nuclear products that support the energy dominance goals of our nation, and this milestone underscores that fact,” said Rex D. Geveden, BWXT president and chief executive officer.
Share “This marks a historic milestone for advanced nuclear fuel fabrication in the United States,” said U.S. Energy Secretary Chris Wright. “The Trump administration is proud to partner with private companies such as BWXT, as we strengthen the foundation of a reliable and secure nuclear supply chain to support both national defense and commercial energy needs.”
“BWXT is delivering leading-edge nuclear products that support the energy dominance goals of our nation, and this milestone underscores that fact,” said Rex D. Geveden, BWXT president and chief executive officer. “Our skilled workforce, advanced manufacturing technologies and nuclear-qualified supply chain are driving a new generation of reactor demonstrations across the country.”
"BWXT's TRISO fuel supported our path to criticality,” said Jordan Bramble, CEO, Antares. “Building on a proven fuel specification developed through Project Pele let our team focus on what we had to prove ourselves: our control system and reactor physics. We're grateful for a partnership that continues as we move from neutrons to electrons."
Antares modeled its reactor fuel on the TRISO (TRi-structural ISOtropic) fuel compacts BWXT delivered for Project Pele, the 1.5 megawatt transportable microreactor BWXT is building for the U.S. Army’s Strategic Capabilities Office. That TRISO fuel specification, developed within DOE’s Advanced Gas Reactor (AGR) program over the past several decades, paired with BWXT’s decades of TRISO development at its Specialty Fuels Fabrication facility in Lynchburg, helped accelerate Antares’ path to a successful criticality test, and demonstrates the value of mature, scalable U.S. fuel manufacturing infrastructure.
“BWXT is proud to work with Antares and deliver the fuel necessary for this important milestone at the Idaho National Lab and for the future,” said Joe Miller, BWXT’s president for Government Operations. “Antares is moving quickly to progress from concept to criticality and we are proud to supply this team with the TRISO needed to do so.”
BWXT continues to support Antares with ongoing TRISO fuel manufacturing, reinforcing the company’s readiness to meet customer timelines and the growing national demand for advanced reactor fuel.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to the performance, design, suitability and impact of advanced reactor technology and TRISO nuclear fuel compacts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, the timing of technology development; our ability to obtain the necessary regulatory approvals, licenses and permits in a timely manner; the ability to commercialize this technology; competition in an environment of rapid technological changes; and the enforcement and protection of our intellectual property rights. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A U.S.-based company with approximately 10,000 employees, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, nuclear medicine, space exploration and environmental restoration. BWXT owns and operates 17 manufacturing facilities globally, and its 14 strategic partnerships support the U.S. and Canadian governments at more than two dozen additional locations.
For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.
United States Representative April McClain Delaney has disclosed purchases of shares in BWX Technologies (NYSE: BWXT), a major supplier of nuclear reactors and components to the U.S. Navy.
The trade is of interest as the company has close ties to national defense and the nuclear sector.
According to the filing, Delaney purchased between $1,001 and $15,000 worth of BWX Technologies on May 14, 2026. The transaction was disclosed on June 5, nearly three weeks after the trade occurred.
Data from congressional trading trackers indicates the lawmaker has reported multiple purchases that could total as much as $130,000 in BWXT stock. Since the transaction, BWXT stock has plunged over 11%, trading at $188, underperforming the broader market over the same period.
BWXT one-year stock price chart. Source: Google Finance Despite the recent decline, BWXT remains up roughly 40% over the past year and continues to trade near the middle of its 52-week range of $127.51 to $241.82.
The Maryland Democrat serves on the House Committee on Science, Space, and Technology, a position that has prompted scrutiny of investments tied to industries affected by federal policy and government spending.
BWXT fundamentals BWX Technologies is a key player in the U.S. nuclear and defense sector, supplying components and propulsion systems for the Navy while expanding into advanced reactors and commercial nuclear projects.
The Congress trade comes after several positive developments for the company. In May, BWXT reported stronger-than-expected first-quarter 2026 earnings, raised its full-year outlook, and secured more than $1.4 billion in naval nuclear propulsion contracts.
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The company has also benefited from growing investor interest in nuclear energy amid rising power demand from AI infrastructure and data centers.
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On June 11, 2026, BWX Technologies Inc BWXT shares rose 6.4% to a current price of $194.68. The stock has seen a 52-week range from a low of $133.84 to a high of $241.82, reflecting a significant volatility in its price performance. This recent increase follows a -7.5% decline over the last month, but the stock remains up 12.9% year-to-date and has surged 44.2% over the past year.
GF Value™ verdict: Current price is $194.68 vs GF Value™ of $140.23, indicating a 38.8% overvaluation.GF Score™ of 93/100, suggesting strong overall performance and potential for higher long-term returns.Notable signal: Insiders sold $2.6 million in shares over the last three months, indicating a lack of confidence from management. Is BWXT Overvalued or Undervalued? The current price of BWX Technologies Inc BWXT at $194.68 is significantly above the GF Value™ estimate of $140.23, reflecting a 38.8% overvaluation. This overvaluation suggests that the stock may not be a safe investment at its current price and indicates a lack of margin of safety for potential investors. The GF Valuation label categorizes BWXT as "Significantly Overvalued," which poses risks for those considering entering a position at this price level.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. As BWXT trades at a considerable premium to its calculated intrinsic value, potential investors should be cautious and consider the risks associated with investing in an overvalued stock.
How Does BWXT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 52.0x 31.4x Forward P/E 41.3x N/A The current P/E ratio of BWXT stands at 52.0x, which is 66% above its 5-year median P/E of 31.4x. The forward P/E of 41.3x also indicates a premium valuation. This analysis aligns with the GF Value™ verdict of overvaluation, suggesting that BWXT's stock is trading at levels that may not be sustainable based on its historical valuation metrics.
What Does BWXT's GF Score™ Tell Us? Metric Rating GF Score™ 93 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 93/100 suggests that BWX Technologies Inc is likely to generate higher long-term returns compared to its peers. The strongest areas for BWXT are its Growth (10/10) and Profitability (9/10) scores, indicating a robust business model and strong financial performance. However, the Valuation score of 5/10 raises concerns about the sustainability of its current price level, especially given the overvaluation indicated by the GF Value™ assessment.
What Are Insiders Doing with BWXT Stock? Over the last three months, insiders at BWX Technologies Inc have sold approximately $2.6 million worth of shares, with no reported buying activity. This pattern of selling may suggest a lack of confidence in the stock's future performance from management, which could be a red flag for external investors. The absence of insider buying further reinforces the caution suggested by the stock's current overvaluation.
What This Means for Investors Based on the GF Value™ analysis, BWX Technologies Inc BWXT is currently overvalued. The significant premium over its intrinsic value, combined with insider selling activity and high valuation multiples, suggests that potential investors should approach with caution. It may be prudent to wait for a more favorable entry point before considering an investment.
For the complete analysis, visit the BWX Technologies Inc BWXT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BWXT's GF Score™?
BWXT has a GF Score™ of 93/100, indicating strong overall performance and potential for higher long-term returns.
Is BWXT overvalued or undervalued?
BWXT is currently overvalued, with a GF Value™ of $140.23 compared to its current price of $194.68, reflecting a 38.8% overvaluation.
What is BWXT's P/E ratio?
BWXT's P/E ratio is currently 52.0x, which is significantly above its 5-year median P/E of 31.4x, indicating a premium valuation consistent with the overvaluation suggested by the GF Value™.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The market expects Agco (AGCO - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis farm equipment maker is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +7.3%.
Revenues are expected to be $2.3 billion, up 12.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.21% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Agco?For Agco, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Agco will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Agco would post earnings of $1.85 per share when it actually produced earnings of $2.17, delivering a surprise of +17.30%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Agco appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsCNH Industrial (CNH - Free Report) , another stock in the Zacks Manufacturing - Farm Equipment industry, is expected to report earnings per share of $0.01 for the quarter ended March 2026. This estimate points to a year-over-year change of -90%. Revenues for the quarter are expected to be $3.78 billion, down 1.2% from the year-ago quarter.
The consensus EPS estimate for CNH has been revised 8.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -214.29%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that CNH will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways ETN is set to post Q1 revenues of $7.09B (up 11.11% YoY) and EPS of $2.74 (up 0.74%).Eaton guided for 5-7% organic revenue growth, helped by R&D-driven innovation and new orders.Eaton sees revenue visibility from a growing backlog and contributions from Fibrebond and Ultra PCS. Eaton Corporation (ETN - Free Report) is expected to report an improvement in both top and bottom lines when it reports first-quarter 2026 results on May 5, before market open.
The Zacks Consensus Estimate for ETN’s first-quarter revenues is pegged at $7.09 billion, indicating an 11.11% increase from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.74 per share. The Zacks Consensus Estimate for ETN’s first-quarter earnings indicates year-over-year growth of 0.74%.
Image Source: Zacks Investment Research
Eaton’s Solid Earnings Surprise HistoryEaton’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met in one quarter, resulting in an average surprise of 0.53%.
Image Source: Zacks Investment Research
What the Zacks Model UnveilsOur proven model predicts a likely earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Eaton has an Earnings ESP of +0.58%.
Zacks Rank: Eaton currently carries a Zacks Rank #3.
Other stocks in the same sector that possess these two factors and are likely to come out with an earnings beat this season are AGCO Corporation (AGCO - Free Report) , Eos Energy Enterprises (EOSE - Free Report) and Ferguson plc. (FERG - Free Report) are currently having Earnings ESP of +0.75%, +15.04% and +7.17%, respectively. AGCO, EOSE and FERG currently have a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped Eaton’s Q1 Earnings PerformanceEaton’s steady investment in research and development improves its existing product portfolio while supporting the development of new solutions for customers. This ongoing innovation enables the company to win additional orders and broaden its market reach, ultimately driving earnings growth. For the first quarter, Eaton expects organic revenue growth in the range of 5–7%.
Eaton’s broad product portfolio is helping it secure new orders, steadily strengthening the backlog. This growing backlog offers strong revenue visibility, and the company continues to benefit from this expanding pipeline of future business.
First-quarter earnings are likely to have benefited from contributions of the Fibrebond and Ultra PCS acquisition. Apart from acquisition-driven benefits, Eaton’s capability to address critical power management needs has driven organic growth across most of its segments and is likely supporting the earnings performance.
Eaton Stock Trading at a PremiumEaton’s stock is currently overvalued compared with its industry on a forward 12-month P/E multiple basis (P/E F12M), as shown in the chart below. ETN is currently trading at 30.45X compared with its industry average of 25.02X.
Image Source: Zacks Investment Research
Return on EquityReturn on equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
ETN’s current ROE is 25% compared with the industry’s 20.53%.
Image Source: Zacks Investment Research
Investment ThesisEaton continues to benefit from solid demand across its diverse business segments. The strong focus on innovation, backed by sustained investments in research and development, has enabled the company to consistently enhance the quality and performance of its products.
Effective power management remains crucial for the success of a wide range of projects, and Eaton has positioned itself as a dependable provider of these solutions. The company’s ability to address urgent and complex customer requirements further strengthens its competitive standing in the market.
With operations spanning nearly 160 countries and a globally distributed manufacturing base, Eaton enjoys a well-diversified revenue stream. However, this broad international presence also exposes the company to geopolitical uncertainties, which could lead to potential order disruptions and operational challenges.
The company faces unpredictable geopolitical risks, which could potentially result in order cancellations and operational challenges.
Summing UpEaton’s rising earnings estimates, along with its expanding backlog, are expected to further support the overall performance. Steady demand and a growing backlog indicate a solid pipeline of new orders.
The stock continues to appear appealing, backed by an improving earnings outlook and meaningful contributions from organic growth initiatives.
However, given Eaton’s premium valuation, existing investors may consider holding their positions, while potential investors might be better off waiting for a more attractive entry point.
Net sales of $2.3 billion, up 14.3% year-over-year Reported earnings per share of $0.76 and adjusted earnings per share(1) of $0.94 Full-year adjusted earnings per share outlook increased to approximately $6.00 Regular quarterly dividend increased to $0.30 per share $350 million in share repurchases to commence in the second quarter of 2026 , /PRNewswire/ -- AGCO (NYSE: AGCO) reported net sales of $2.3 billion for the first quarter ended March 31, 2026, an increase of 14.3% compared to the first quarter of 2025. Reported net income was $0.76 per share for the quarter and adjusted net income(1) was $0.94 per share. These results compare to reported net income of $0.14 per share and adjusted net income(1) of $0.41 per share for the first quarter of 2025. Excluding favorable foreign currency translation of 9.6%, net sales in the quarter increased 4.7% compared to the first quarter of 2025.
"AGCO delivered healthy first‑quarter sales and margin results, reflecting disciplined execution in a demanding agricultural market and dynamic global environment," said Eric Hansotia, AGCO's Chairman, President and CEO. "We outpaced the market, particularly in high‑horsepower equipment and precision agriculture, underscoring the strength of our differentiated portfolio and Farmer‑First approach. We stayed focused on supporting customers while maintaining operational flexibility with continued production alignment delivering further progress on dealer and company inventories. We achieved near‑record first‑quarter margins in Europe and continued to grow market share in high-horsepower offerings in North America."
Hansotia continued, "The first quarter results demonstrate a resilient earnings profile, a solid margin structure and positive momentum from our multi‑year structural transformation that reinforce our confidence in our strategy which is delivering increased value to our shareholders underscored by our increased quarterly dividend and next phase of share repurchases. As we progress through 2026, we remain firmly focused on executing our Farmer‑First strategy with a strong innovation pipeline and continued cost discipline to support healthy cash generation, positioning AGCO to navigate ongoing subdued demand and deliver improved performance as market fundamentals recover while keeping farmers at the center of everything we do."
First Quarter Highlights
Reported regional sales results(2): Europe/Middle East ("EME") +20.3%, North America +10.0%, Latin America ("LATAM") (17.3)%, Asia/Pacific/Africa ("APA") +31.2% Constant currency regional sales results(1)(2)(3): EME +9.0%, North America +9.0%, LATAM (30.3)%, APA +20.9% Regional operating margin performance: EME 16.2%, North America (12.5)%, LATAM (19.3)%, APA 3.2% The Company plans to initiate $350 million in share repurchases in the second quarter of 2026 The Company's Board of Directors approved an increase in the Company's regular quarterly dividend to $0.30 per share, from $0.29 per share (1) See reconciliation of non-GAAP measures in appendix.
(2) As compared to first quarter 2025.
(3) Excludes currency translation impact.
Today the Company is also announcing the strategic evolution of its long-standing AGCO Finance U.S. and Canada joint ventures to better align with evolving market dynamics and increasing regulatory and compliance requirements. The new framework will optimize regulatory capital efficiency and capital deployment while strengthening AGCO's strategic partnership with Rabobank and its commitment to providing competitive financing solutions to farmers and dealers. On April 30, 2026, the Company executed two purchase agreements with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd., respectively, for approximately $190.0 million. The proceeds will be utilized towards share repurchases. In connection with the purchase agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank that establish the commercial terms governing the future provision of financing solutions. The Company will continue to evaluate similar agreements in respect of other joint ventures with wholly owned subsidiaries of Rabobank in the future.
Market Update
Industry Unit Retail Sales
Tractors
Combines
Three Months Ended March 31, 2026
Change from
Prior Year Period
Change from
Prior Year Period
North America(4)
(8) %
(7) %
Brazil(5)
(10) %
(38) %
Western Europe(5)
7 %
(5) %
(4) Excludes compact tractors.
(5) Based on Company estimates.
Hansotia concluded, "Global agricultural markets entered 2026 with heightened focus on cost management and productivity, particularly for crop‑focused producers operating with tight margins as corn, soybean and wheat prices are near breakeven levels amid ample global supplies and evolving geopolitical and trade dynamics. Developments in the Middle East increased volatility across global energy, logistics and input markets, resulting in higher fuel, fertilizer and transportation costs that reinforced the importance of operational efficiency. In the U.S., strong harvests continued to shape grain pricing and farm profitability, while livestock producers benefited from firmer pricing and improved cash receipts, supporting a more favorable backdrop in that sector. Overall sentiment among crop producers remains cautious as input costs stay elevated and government programs continue to play an important role in supporting farm income. While demand for new equipment remains measured across many markets, it has largely aligned with current farm economics. Adoption of smart farming technologies continues to advance as farmers emphasize productivity, efficiency and returns on invested capital, even as near‑term demand across several equipment categories remains selective."
North American industry retail tractor sales were 8% lower in the first three months of 2026 compared to the same period in 2025 with the most pronounced declines occurring in higher horsepower categories. Combine unit sales were 7% lower year-over-year during the same period. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, particularly for larger equipment.
Brazil industry retail tractor sales were 10% lower in the first three months of 2026 compared to the same period in 2025 reflecting softer demand for larger tractors partially offset by improved demand for smaller and mid-size equipment. Brazil is producing near-record crops, but profitability is under pressure due to high production costs, particularly for imported fertilizer and demand for larger equipment has not yet shown renewed growth. High financing costs, tight credit and broader political dynamics are expected to continue to constrain demand in 2026.
Western Europe industry retail tractor sales were 7% higher during the first three months of 2026 compared to the same period in 2025 with growth across most of the Western European markets. Farm income levels in 2025, supported primarily by dairy and livestock producers, together with an aging equipment fleet, provides a foundation for 2026 industry demand to remain modestly above 2025 levels.
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended March 31,
2026
2025
% change
from 2025
% change
from 2025
due to
currency
translation(6)
% change
excluding
currency
translation
North America
$ 406.4
$ 369.5
10.0 %
1.0 %
9.0 %
LATAM(7)
211.7
256.0
(17.3) %
13.0 %
(30.3) %
EME
1,600.8
1,330.5
20.3 %
11.3 %
9.0 %
APA
124.0
94.5
31.2 %
10.3 %
20.9 %
Total
$ 2,342.9
$ 2,050.5
14.3 %
9.6 %
4.7 %
(6)
See footnotes for additional disclosures.
(7)
Note: Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
North America
North American net sales increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Higher unit sales compared to the prior year supported the increase in sales. The most significant sales increases occurred in high-horsepower tractors, hay tools and sprayers. Income from operations for the first quarter of 2026 was $26.8 million lower compared to the same period in 2025 and operating margins remained negative. This decrease was primarily a result of higher tariff-related input costs.
Latin America
Net sales in the Latin American region were 30.3% lower during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Softer industry demand resulted in lower sales across all product categories. Income from operations for the first quarter of 2026 was $47.4 million lower compared to the same period in 2025. This decrease was primarily the result of significantly lower sales and negative pricing.
Europe/Middle East
Net sales in the Europe/Middle East region increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. The increased sales resulted from increased unit volumes compared to the first quarter of 2025 which included dealer inventory de-stocking. Sales growth in Germany and the United Kingdom was partially offset by declines in Turkey and France. Growth in high-horsepower tractor sales drove most of the increase. Income from operations increased $104.6 million in the first quarter of 2026 compared to the same period in 2025. This increase was primarily a result of sales growth, favorable product mix and increased production volumes.
Asia/Pacific/Africa
Asia/Pacific/Africa region net sales increased 20.9% during the first quarter of 2026 compared to the first quarter of 2025, excluding favorable currency translation impacts. Higher sales in Australia and South Africa were partially offset by lower sales across most of the Asian markets. Income from operations increased $6.7 million in the first quarter of 2026 compared to the same period in 2025 primarily due to higher levels of sales and production volumes.
Outlook
AGCO's net sales for 2026 are expected to range from $10.5 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0% reflecting continued emphasis on pricing discipline, cost management and operational alignment. Production volumes are expected to remain relatively flat to slightly lower, with cost controls and positive pricing contributing to performance. Based on these assumptions, 2026 earnings per share are targeted at approximately $6.00. These estimates reflect tariff policies as of May 5, 2026, together with AGCO's established mitigation actions and sourcing strategies. Any changes to tariff policies or related responses could affect these projections.
* * * * *
AGCO will host a conference call for this earnings announcement at 10 a.m. Eastern Time on Tuesday, May 5. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at www.agcocorp.com under the "Investors" section. The webcast will also be archived immediately afterward for 12 months. A copy of this press release will be available on AGCO's website for at least 12 months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry generally, including declines in the general economy, adverse weather, tariffs, increases in farm input costs, lower commodity prices, lower farm income and changes in the availability of credit for our retail customers, will adversely affect us. We maintain an independent dealer and distribution network in the markets where we sell products. The financial and operational capabilities of our dealers and distributors are critical to our ability to compete in these markets. Higher inventory levels at our dealers and high utilization of dealer credit limits as well as the financial health of our dealers could negatively impact future sales and adversely impact our performance. On April 1, 2024, we completed the acquisition of the ag assets and technologies of Trimble through the formation of a joint venture, PTx Trimble, of which we own 85%. Financing the PTx Trimble transaction significantly increased our indebtedness and interest expense. We also have made various assumptions relating to the acquisition that may not prove to be correct, and we may fail to realize all of the anticipated benefits of the acquisition. All acquisitions involve risk, and there is no certainty that the acquired business will operate as expected. Each of these items, as well as similar acquisition-related items, would adversely impact our performance. A majority of our sales and manufacturing takes place outside the United States, and many of our sales involve products that are manufactured in one country and sold in a different country. As a result, we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economic conditions, labor supply and relations, political conditions and governmental policies. The global trade landscape continues to be highly volatile. In 2025, the U.S. government implemented a series of tariffs on goods imported into the United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported from the United States. These tariffs and related actions are complex and continue to evolve as trade negotiations occur. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act ("IEEPA"), which the U.S. government had relied on to impose certain tariffs, does not authorize the administration to impose such tariffs. Following that decision, on March 4, 2026, the U.S. Court of International Trade ("CIT") ordered U.S. Customs and Border Protection ("CBP") to process refunds of tariffs imposed under IEEPA, and on March 27, 2026, the CIT issued an amended order expanding the scope of entries subject to reliquidation. On April 20, 2026, the Consolidated Administration and Processing of Entries system opened for the first phase of refund filings. We have submitted certain refund claims under this initial phase; however, these claims remain subject to CBP review, and we cannot predict the timing, amount or ultimate collectability of any refunds to which we may be entitled. The IEEPA tariffs remain subject to ongoing litigation, and the administration has announced plans to implement new tariffs under alternative statutory authority. As a result, the timing and extent of any refunds, the structure and scope of any new tariffs and the overall tariff framework remain uncertain and could create significant risks for our business. Depending on the countries affected, increases in tariffs have raised, and may continue to raise, the costs of inputs used in manufacturing our products, which in turn has impacted, and may further impact, our cost of goods sold. In addition, higher tariffs may lead to increased after‑tariff sales prices for the products we sell. Additionally, the economic uncertainty caused by the tariffs may result in customers delaying planned purchases of products and services. While impacts of the tariffs may be partially mitigated by the fact that a majority of our sales and manufacturing takes place outside the United States, there can be no guarantee that we will be able to fully offset the impact of existing or future tariffs through pricing, sourcing changes or other measures. Furthermore, retaliatory tariffs imposed by other countries on our exported products could negatively affect our sales and marketplace access in those countries. The economic uncertainty caused by these tariffs and related trade policy developments, together with uncertainty regarding their enforceability, continuation or modification, has adversely impacted, and is expected to continue to adversely impact, our sales. We cannot predict or control the impact of the conflict in Ukraine or the Middle East on our business. These conflicts have already driven increased volatility across global energy, logistics and input markets, leading to higher fuel, fertilizer, transportation and input costs, as well as general uncertainty for farmers. There is a potential for natural gas shortages, as well as shortages in other energy sources, throughout Europe, which could negatively impact our production in Europe both directly and through interrupting the supply of parts and components that we use. It is unclear how long these conditions will continue, or whether they will worsen, and what the ultimate impact on our performance will be. In addition, AGCO sells products in, and purchases parts and components from, other regions where there could be hostilities. Any hostilities likely would adversely impact our performance. Most retail sales of the products that we manufacture are financed, either by our joint ventures with Rabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance approximately 50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain), or us to find another source of retail financing for our customers, or our customers would be required to utilize other retail financing providers. As a result of the recent economic downturn, financing for capital equipment purchases generally has become more difficult in certain regions and in some cases, can be expensive to obtain. To the extent that financing is not available or available only at unattractive prices, our sales would be negatively impacted. In addition, Rabobank also is the lead lender in our revolving credit facility and term loans and for many years has been an important financing partner for us. Any interruption or other challenges in that relationship would require us to obtain alternative financing, which could be difficult. Both AGCO and our finance joint ventures have substantial accounts receivable from dealers and end customers, and we would be adversely impacted if the collectability of these receivables was less than optimal; this collectability is dependent upon the financial strength of the farm industry, which in turn is dependent upon the general economy and commodity prices, as well as several of the other factors listed in this section. We can experience substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products. Our success depends on the introduction of new products, particularly engines that comply with emission requirements and sustainable smart farming technology, which require substantial expenditures; there is no certainty that we can develop the necessary technology or that the technology that we develop will be attractive to farmers or available at competitive prices. Our expansion plans in emerging markets, including establishing a greater manufacturing and marketing presence and growing our use of component suppliers, could entail significant risks. Our business is increasingly subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages. Cybersecurity breaches including ransomware attacks and other means are rapidly increasing. We continue to review and improve our safeguards to minimize our exposure to future attacks. However, there always will be the potential of the risk that a cyberattack will be successful and will disrupt our business, either through shutting down our operations, destroying data, exfiltrating data or otherwise. We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. In addition, the potential of future natural gas shortages in Europe, as well as predicted overall shortages in other energy sources, could also negatively impact our production and that of our supply chain in the future. There can be no assurance that there will not be future disruptions. Any future pandemics could negatively impact our business through reduced sales, facilities closures, higher absentee rates and reduced production at both our plants and the plants that supply us with parts and components. In addition, logistical and transportation-related issues and similar problems may also arise. We have previously experienced significant inflation in a range of costs, including for parts and components, shipping and energy. While we have been able to pass along most of those costs through increased prices, there can be no assurance that we will be able to continue to do so. If we are not, it will adversely impact our performance. We face significant competition, and if we are unable to compete successfully against other agricultural equipment manufacturers, we would lose customers and our net sales and performance would decline. We have a substantial amount of indebtedness (and have incurred additional indebtedness as part of the PTx Trimble joint venture transaction), and, as a result, we are subject to certain restrictive covenants and payment obligations, as well as increased leverage generally, that may adversely affect our ability to operate and expand our business. Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2025, and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
# # # # #
AGCO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
March 31, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 514.9
$ 861.8
Accounts and notes receivable, net
1,242.3
1,079.4
Inventories, net
3,001.8
2,709.3
Other current assets
579.2
545.6
Total current assets
5,338.2
5,196.1
Property, plant and equipment, net
1,954.8
1,996.2
Right-of-use lease assets
159.4
167.3
Investments in affiliates
628.1
609.9
Deferred tax assets
932.2
905.5
Other assets
474.6
481.0
Intangible assets, net
663.0
673.0
Goodwill
1,890.6
1,898.8
Total assets
$ 12,040.9
$ 11,927.8
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current Liabilities:
Borrowings due within one year
$ 555.5
$ 117.7
Accounts payable
1,121.5
951.0
Accrued expenses
2,267.2
2,538.7
Other current liabilities
184.1
121.7
Total current liabilities
4,128.3
3,729.1
Long-term debt, less current portion and debt issuance costs
2,018.7
2,323.1
Operating lease liabilities
115.9
122.1
Pension and postretirement health care benefits
167.8
169.2
Deferred tax liabilities
123.7
126.5
Other noncurrent liabilities
894.5
885.1
Total liabilities
7,448.9
7,355.1
Redeemable noncontrolling interests
295.5
299.2
Stockholders' Equity:
Preferred stock
—
—
Common stock
0.7
0.7
Additional paid-in capital
—
0.5
Retained earnings
6,032.2
6,047.2
Accumulated other comprehensive loss
(1,736.4)
(1,774.9)
Total stockholders' equity
4,296.5
4,273.5
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$ 12,040.9
$ 11,927.8
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
Three Months Ended March 31,
2026
2025
Net sales
$ 2,342.9
$ 2,050.5
Cost of goods sold
1,761.5
1,529.9
Gross profit
581.4
520.6
Operating expenses:
Selling, general and administrative expenses
339.1
325.8
Engineering expenses
132.6
116.0
Amortization of intangibles
16.9
15.3
Impairment charges
2.1
1.1
Restructuring and business optimization expenses
10.0
13.0
Income from operations
80.7
49.4
Interest expense, net
15.2
18.5
Other expense, net
26.5
32.3
Income (loss) before income taxes and equity in net earnings of affiliates
39.0
(1.4)
Income tax provision
4.6
2.0
Income (loss) before equity in net earnings of affiliates
34.4
(3.4)
Equity in net earnings of affiliates
18.0
12.1
Net income
52.4
8.7
Net loss attributable to noncontrolling interests
2.6
1.8
Net income attributable to AGCO Corporation
$ 55.0
$ 10.5
Net income per common share attributable to AGCO Corporation
Basic
$ 0.76
$ 0.14
Diluted
$ 0.76
$ 0.14
Cash dividends declared and paid per common share
$ 0.29
$ 0.29
Weighted average number of common and common equivalent shares outstanding:
Basic
72.5
74.6
Diluted
72.7
74.7
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions)
Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$ 52.4
$ 8.7
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation
66.7
60.5
Amortization of intangibles
16.9
15.3
Stock compensation expense
10.4
7.3
Impairment charges
2.1
1.1
Equity in net earnings of affiliates, net of cash received
(18.0)
(12.1)
Deferred income tax benefit
(23.6)
(27.3)
Other
4.0
6.6
Changes in operating assets and liabilities:
Accounts and notes receivable, net
(177.1)
44.7
Inventories, net
(284.1)
(149.4)
Other current and noncurrent assets
(24.0)
2.5
Accounts payable
202.3
177.9
Accrued expenses
(254.2)
(384.9)
Other current and noncurrent liabilities
15.8
36.9
Total adjustments
(462.8)
(220.9)
Net cash used in operating activities
(410.4)
(212.2)
Cash flows from investing activities:
Purchases of property, plant and equipment
(44.6)
(48.2)
Proceeds from sale of property, plant and equipment
0.1
1.1
Investments in unconsolidated affiliates, net
(8.5)
(0.1)
Other
(12.6)
(4.1)
Net cash used in investing activities
(65.6)
(51.3)
Cash flows from financing activities:
Proceeds from indebtedness
187.2
531.2
Repayments of indebtedness
(31.5)
(297.0)
Payment of dividends to stockholders
(21.0)
(21.6)
Payment of minimum tax withholdings on stock compensation
(4.6)
(7.4)
Net cash provided by financing activities
130.1
205.2
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(1.0)
8.2
Decrease in cash, cash equivalents and restricted cash
(346.9)
(50.1)
Cash, cash equivalents and restricted cash, beginning of period
861.8
612.7
Cash, cash equivalents and restricted cash, end of period
$ 514.9
$ 562.6
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions)
1. SEGMENT REPORTING
The Company has four operating segments which are also its reportable segments which consist of the North America, Latin America, Europe/Middle East and Asia/Pacific/Africa regions. Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three months ended March 31, 2026 and 2025 based on the Company's reportable segments are as follows (in millions):
Three Months Ended March 31,
North
America
Latin
America
Europe/
Middle East
Asia/Pacific/
Africa
Total
Segments
2026
Net sales
$ 406.4
$ 211.7
$ 1,600.8
$ 124.0
$ 2,342.9
Cost of goods sold
338.1
203.9
1,119.5
100.0
1,761.5
Selling, general and administrative expenses
82.2
36.0
142.1
17.4
277.7
Engineering expenses
37.1
12.7
80.2
2.6
132.6
Income (loss) from operations
$ (51.0)
$ (40.9)
$ 259.0
$ 4.0
$ 171.1
2025
Net sales
$ 369.5
$ 256.0
$ 1,330.5
$ 94.5
$ 2,050.5
Cost of goods sold
275.6
205.1
970.9
78.3
1,529.9
Selling, general and administrative expenses
84.8
34.2
135.2
16.4
270.6
Engineering expenses
33.3
10.2
70.0
2.5
116.0
Income (loss) from operations
$ (24.2)
$ 6.5
$ 154.4
$ (2.7)
$ 134.0
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended March 31,
2026
2025
Segment income from operations
$ 171.1
$ 134.0
Impairment charges
(2.1)
(1.1)
Corporate expenses
(51.1)
(48.1)
Amortization of intangibles
(16.9)
(15.3)
Stock compensation expense
(10.3)
(7.1)
Restructuring and business optimization expenses
(10.0)
(13.0)
Consolidated income from operations
$ 80.7
$ 49.4
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share and net sales on a constant currency basis, each of which excludes amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.
The following is a reconciliation of reported income from operations, net income attributable to AGCO and net income per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three months ended March 31, 2026 and 2025 (in millions, except per share data):
Three Months Ended March 31,
2026
2025
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
As reported
$ 80.7
$ 55.0
$ 0.76
$ 49.4
$ 10.5
$ 0.14
Restructuring and business optimization expenses(2)
10.0
8.4
0.12
13.0
9.7
0.13
Amortization of PTx Trimble acquired intangibles(3)
14.4
11.1
0.15
12.8
7.6
0.10
Transaction-related costs(4)
0.2
—
—
7.1
2.0
0.03
Impairment charges(5)
2.1
2.1
0.03
1.1
1.1
0.01
Discrete tax items(6)
—
(8.5)
(0.12)
—
—
—
As adjusted
$ 107.4
$ 68.1
$ 0.94
$ 83.4
$ 30.9
$ 0.41
____________________________________
(1)
Net income and net income per share amounts are after tax.
(2)
The restructuring expenses recorded during the three months ended March 31, 2026 and 2025 related primarily to severance, business optimization and other related costs associated with the Company's restructuring program.
(3)
Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.
(4)
The transaction-related costs recorded during the three months ended March 31, 2026 related to the Company's divestiture of the majority of its Grain & Protein ("G&P") business. The transaction-related costs recorded during the three months ended March 31, 2025 related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.
(5)
The impairment charges recorded during the three months ended March 31, 2026 and 2025 primarily related to the impairment of certain other assets.
(6)
During the three months ended March 31, 2026, the Company received a refund resulting from a favorable resolution related to a prior settlement under the Brazilian government's "Litigation Zero" tax amnesty program.
The following is a reconciliation of adjusted operating margin for the three months ended March 31, 2026 and 2025 (in millions, except margin data):
Three Months Ended March 31,
2026
2025
Net sales
$ 2,342.9
$ 2,050.5
Income from operations
80.7
49.4
Adjusted income from operations(1)
$ 107.4
$ 83.4
Operating margin(2)
3.4 %
2.4 %
Adjusted operating margin(2)
4.6 %
4.1 %
__________________________________
(1)
Refer to the previous table for the reconciliation of income from operations to adjusted income from operations.
(2)
Operating margin is defined as the ratio of income from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales.
The Company does not provide a quantitative reconciliation of forward-looking, non-GAAP financial measures to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations and providing them may imply a degree of precision that would be confusing or potentially misleading.
The following table sets forth, for the three months ended March 31, 2026 and 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended March 31,
Change due to currency
translation
2026
2025
% change
from 2025
$
%
North America
$ 406.4
$ 369.5
10.0 %
$ 3.7
1.0 %
Latin America(1)
211.7
256.0
(17.3) %
33.4
13.0 %
Europe/Middle East
1,600.8
1,330.5
20.3 %
150.6
11.3 %
Asia/Pacific/Africa
124.0
94.5
31.2 %
9.7
10.3 %
$ 2,342.9
$ 2,050.5
14.3 %
$ 197.4
9.6 %
_________________________________
(1)
Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
Agco (AGCO - Free Report) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +112.81%. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.85 per share when it actually produced earnings of $2.17, delivering a surprise of +17.3%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.34 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.71%. This compares to year-ago revenues of $2.05 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Agco shares have added about 16.3% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Agco?While Agco has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Agco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $2.72 billion in revenues for the coming quarter and $5.75 on $10.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Deere (DE - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.
This agricultural equipment manufacturer is expected to post quarterly earnings of $5.81 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Deere's revenues are expected to be $11.44 billion, up 2.4% from the year-ago quarter.
For the quarter ended March 2026, Agco (AGCO - Free Report) reported revenue of $2.34 billion, up 14.3% over the same period last year. EPS came in at $0.94, compared to $0.41 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.3 billion, representing a surprise of +1.71%. The company delivered an EPS surprise of +112.81%, with the consensus EPS estimate being $0.44.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Agco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- North America: $406.4 million compared to the $386.06 million average estimate based on four analysts. The reported number represents a change of +2.7% year over year.Net Sales- Asia/Pacific/Africa: $124 million versus $110.81 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.Net Sales- Europe/Middle East: $1.6 billion compared to the $1.59 billion average estimate based on four analysts. The reported number represents a change of +20.3% year over year.View all Key Company Metrics for Agco here>>>
Shares of Agco have returned +6% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries. Its full range of agricultural equipment, include tractors (generated 57% of 2020 sales), combines (3%), application equipment including self-propelled sprayers (3%), hay tools and forage equipment, and implements and other equipment (12%). Sales of replacement parts generated around 14% of the company’s sales in 2018.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 20.77; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $5.79 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
Did you analyze how Agco (AGCO - Free Report) fared in its international operations for the quarter ending March 2026? Given the widespread global presence of this farm equipment maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing AGCO's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $2.34 billion, marking an increase of 14.3% from the year-ago quarter. We will next turn our attention to dissecting AGCO's international revenue to get a clearer picture of how significant its operations are outside its main base.
Decoding AGCO's International Revenue TrendsDuring the quarter, Asia/Pacific/Africa contributed $124 million in revenue, making up 5.3% of the total revenue. When compared to the consensus estimate of $110.81 million, this meant a surprise of +11.91%. Looking back, Asia/Pacific/Africa contributed $176.8 million, or 6.1%, in the previous quarter, and $94.5 million, or 4.6%, in the same quarter of the previous year.
Europe/Middle East accounted for 68.3% of the company's total revenue during the quarter, translating to $1.6 billion. Revenues from this region represented a surprise of +0.46%, with Wall Street analysts collectively expecting $1.59 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe/Middle East contributed $2.02 billion (69.1%) and $1.33 billion (64.9%) to the total revenue, respectively.
Prospective Revenues in International MarketsThe current fiscal quarter's total revenue for Agco, as projected by Wall Street analysts, is expected to reach $2.72 billion, reflecting an increase of 3.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia/Pacific/Africa is anticipated to contribute 5.2% or $140.27 million, and Europe/Middle East 69.6% or $1.89 billion.
For the full year, the company is projected to achieve a total revenue of $10.56 billion, which signifies a rise of 4.8% from the last year. The share of this revenue from various regions is expected to be: Asia/Pacific/Africa at 5.6% ($593.47 million), and Europe/Middle East at 68.9% ($7.28 billion).
In ConclusionAgco's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Agco, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Agco's Stock Price Movement in Recent TimesThe stock has declined by 3.2% over the past month compared to the 9.1% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes Agco,has increased 2.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 16.5% relative to the S&P 500's 7.1% increase. Throughout this period, the sector overall has witnessed a 1.1% decrease.
DULUTH, Ga., May 13, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) today announced it will participate in the J.P. Morgan 2026 Global Technology, Media and Communications Conference on Tuesday, May 19, 2026. The conference will include a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, and Brian Sorbe, President, PTx, at 10:45 a.m. Eastern Time. Investors may listen to a live webcast of the presentation by accessing the "Events" section of the company's Investor Relations website at https://investors.agcocorp.com/events-and-presentations/upcoming-events. The webcast will also be archived immediately afterward for 12 months.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
Additional AGCO News
AGCO Honors America's Farmers at the "Great American Agriculture Celebration" in Washington, D.C. AGCO Parts Shop B2B Digital Technology Team Wins 2026 Digital Engineering Award AGCO Welcomes Ritchie Implement as New Full-Line Production Ag Dealer in Southwest Wisconsin SOURCE AGCO Corporation
I’ve been following Deere (NYSE:DE | DE Price Prediction) for years as a slow-moving industrial bet, and the most interesting line in agriculture right now sits buried inside SpaceX’s S-1 filing, where the iconic green-and-yellow brand shows up as a Starlink customer.
The partnership hiding in plain sight SpaceX’s S-1 names John Deere directly. The filing states the company has “partnered with land mobility operators, including John Deere and the California Fire Department” to provide remote monitoring and management of fleets. Starlink’s industrial pitch is straightforward: serve as “a connectivity backbone for connected equipment and telemetry-driven workflows, enabling real-time monitoring and remote operations in agriculture, energy, and logistics environments.”
That matters because terrestrial networks cover only approximately 20% of global land mass, and the most valuable acres a Deere combine touches sit firmly outside that footprint. A tractor running See & Spray AI or Harvest Settings Automation is useless if it can’t phone home.
Why connectivity is now Deere’s product CFO Josh Jepsen put numbers on this shift during the Q1 FY2026 call. Deere hit 500 million engaged acres, with approximately 25% growth in “highly engaged” acres. Jepsen tied that directly to satellite: “Nearly 1/3 of those engaged acres are highly engaged… which speaks to what we’re doing on connectivity and making sure we’re reaching deeper into the fleet.”
Customer behavior is following. 99% of combines ordered through the Early Order Program include some level of harvest automation, with nearly 80% taking the highest “ultimate package.” Think of Starlink as the toll bridge connecting that software to the field.
The financials beneath the bet Deere posted Q1 FY2026 EPS of $2.42 against a $2.10 consensus on revenue of $9.61 billion, and raised FY2026 net income guidance to $4.5 billion to $5.0 billion. CEO John May framed the cycle bluntly: “2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”
Shares are up 21% year-to-date to $560.46, with a market cap near $151 billion.
AGCO’s open-system counterpunch AGCO (NYSE:AGCO) is attacking from below with PTx Trimble retrofit autonomy. CEO Eric Hansotia said the company “outpaced the market, particularly in high-horsepower equipment and precision agriculture.” AGCO posts Q1 2026 adjusted EPS of $0.94 against a $0.44 estimate, and is targeting $2 billion in precision ag sales by 2029. Its strategy is Android-like openness across mixed fleets. Deere’s is Apple-like vertical integration, now with a Starlink uplink.
What I’m watching The Starlink line in the S-1 is one sentence. The implication is a decade of moat. If precision agriculture is a software business that ships in green paint, Deere’s SpaceX tie-up is the connectivity layer that makes the rest defensible. If farmers revolt over right-to-repair and pick open ecosystems, AGCO’s retrofit play wins. Either way, the tractor is now a node on a satellite network, and that changes the unit of competition.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.89; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.19 to $5.97 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
AGCO chairman and CEO Eric Hansotia forecasts the challenges farmers will face due to fertilizer and energy price pressures on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #agco #erichansotia #farmers #farming #agriculture #economy #business #finance #energy #fertilizer #iran #markets #global #world #supplychain #food #investment #commodities
DULUTH, Ga., May 29, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) today announced it will participate in the 16th Annual Wells Fargo Industrials & Materials Conference on Tuesday, June 9, 2026. The conference will include a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, at 9:45 a.m. Eastern Time. Investors may listen to a live webcast of the presentation by accessing the "Events" section of the company's Investor Relations website at https://investors.agcocorp.com/events-and-presentations/upcoming-events. The webcast will also be archived immediately afterward for 12 months.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
Additional AGCO News
AGCO Honors America's Farmers at the "Great American Agriculture Celebration" in Washington, D.C. AGCO Parts Shop B2B Digital Technology Team Wins 2026 Digital Engineering Award AGCO Welcomes Ritchie Implement as New Full-Line Production Ag Dealer in Southwest Wisconsin SOURCE AGCO Corporation
Independent testing highlights how AGCO Power™ engines and driveline integration help farmers reduce fuel use while maintaining field performance.
, /PRNewswire/ -- AGCO (NYSE: AGCO) is advancing fuel saving technologies that help farmers reduce operating costs while maintaining performance, reliability and uptime during critical fieldwork, with results reflected in independent DLG (Deutsche Landwirtschafts-Gesellschaft) PowerMix testing. Those gains are being delivered across the company's Fendt®, Massey Ferguson® and Valtra® brands, supported by engine development and integrated powertrain solutions from AGCO Power™, the company's power solutions division that designs and manufactures engines and related systems.
Tractors from across AGCO brands, including (left to right) Fendt’s 700 Vario Gen 7, Massey Ferguson’s 8S Xtra and Valtra’s G Series, reflect the company’s focus on fuel-saving performance through advanced engine and driveline integration. "For farmers, fuel efficiency is about lowering operating costs without sacrificing the performance and reliability they need during critical fieldwork," said Kari Aaltonen, Director, Engineering, AGCO Power. "Across our brands, AGCO Power focuses on engineering engines and integrated powertrains that deliver measurable efficiency gains in real working conditions."
In Fendt's latest tractor platforms, the AGCO Power CORE engine family is a central part of the powertrain lineup. CORE engines are in use in several of the brand's Vario series tractors, including the CORE50 in the Fendt 600 Vario series and the CORE75 in the Fendt 700 Vario Gen7 series. Independent testing of the Fendt 700 Vario series, with its CVT transmission, demonstrated strong fuel efficiency performance across both field and transport applications, reinforcing Fendt's focus on delivering efficient power in high-horsepower tractors.
Massey Ferguson also uses AGCO Power engines in its current product lineup, and the impact is demonstrated in independent tests. In recent DLG PowerMix testing, the Massey Ferguson 8S.265 Xtra Dyna E-Power™ placed first overall for fieldwork in its category. The results highlight how AGCO Power engine integration, combined with Massey Ferguson transmission and tractor design choices, delivers measurable efficiency outcomes in real–world operating scenarios.
Across Valtra's tractor range, AGCO Power engines serve as the long-standing power source, paired with efficiency-focused operating concepts integrated into the overall driveline. Valtra's EcoPower™ operating philosophy focuses on maintaining high torque at lower engine speeds, supporting lower fuel consumption across typical field and transport applications, an approach reflected in DLG PowerMix results and other independent comparison testing cited by the brand. Valtra also uses a selective catalytic reduction (SCR) system to enable efficient combustion, contributing to improved fuel consumption compared with previous engine generations.
AGCO's Fendt, Massey Ferguson and Valtra brands are seeing measurable fuel efficiency gains through the combination of AGCO Power's proven engine technology and brand-specific tractor and powertrain integration. For farmers, that means lower fuel costs without sacrificing the performance and reliability demanded in real-world work.
Fendt, Massey Ferguson and Valtra are registered trademarks of AGCO. AGCO Power, Dyna E-Power and EcoPower are trademarks of AGCO.
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
The Trump administration is about to hand five equipment makers a margin gift, and the window to position is closing fast. I’ve been tracking this tariff-relief setup across the industrial complex for months, and per the Marketplace Morning Report’s Nova Safo, tariffs on imported agricultural and manufacturing machinery containing steel, aluminum, and copper drop from 25% to 15% starting next Monday, easing input costs on tractors, combines, bulldozers, material-handling gear, and HVAC systems. That 25% rate was itself a step down from 50%, and the White House is openly framing the cut as midterm-cycle relief for housing, manufacturing, and agriculture. Every name on this list has explicitly blamed tariffs for crushing margins in their most recent quarter. Now the headwind reverses.
#1. Carrier Global (CARR): The Stock Nobody’s Calling a Tariff Trade Start with the name that isn’t on the farm-equipment desk’s screen. Carrier Global (NYSE:CARR | CARR Price Prediction) makes HVAC systems, which sit squarely inside the White House’s targeted relief bucket: residential housing, light commercial construction, and the data center cooling boom. Tariff uncertainty has been a recurring item in Carrier’s risk disclosures, and the company’s Climate Solutions Americas residential business is the one bleeding from steel and copper costs. Cutting the derivative tariff from 25% to 15% directly relieves that pressure.
The demand side is already screaming. In Q1 2026, Carrier reported adjusted EPS of $0.57 versus a $0.51 estimate, revenue of $5.34 billion (up 2.4% year over year), and the eye-popper: data center orders up more than 500% with total commercial HVAC orders up 35%, the sixth consecutive year of double-digit growth in that segment. CEO David Gitlin said “Orders in our global Commercial HVAC business increased 35%, helped by data centers which were up over 500% in the quarter.” Strip out the residential drag (which the tariff cut directly addresses) and what’s left is an AI-cooling growth story trading like an industrial cyclical.
Shares are up about 27% year-to-date, but down roughly 4% over the past year. The market hasn’t connected the housing-relief narrative to Carrier yet. The next name on this list, by contrast, is already being priced for perfection.
#2. Caterpillar (CAT): The Heavyweight With a Record Backlog If the White House wants to stimulate construction and manufacturing, Caterpillar (NYSE:CAT) is the company those tariffs were grinding hardest. In Q4 2025, CAT booked $1.03 billion in tariff-related manufacturing costs, compressing operating margin to 13.9% from 18.0%. The Resource Industries segment took a 39% drop in segment profit with a 7-point margin compression on the same tariff dynamic. Every basis point of that relief now flips to operating leverage.
The Q1 2026 report already showed how violently this business levers up when costs cooperate. CAT delivered EPS of $5.54 versus a $4.64 estimate, revenue of $17.42 billion (up 22.2% year over year), and a Construction Industries segment that grew 38% with operating margin expanding 1.6 points to 21.4%. Power Generation, the AI data center play, posted 41% growth. CEO Joe Creed said “A record backlog provides a strong foundation for continued positive momentum.”
The stock has been a freight train: up roughly 60% year-to-date and up about 167% over the past year. That makes the next name on this list more interesting, because it just received a tariff refund check the market hasn’t fully digested.
#3. Deere & Company (DE): The Refund Check Is Already in the Mail Deere & Company (NYSE:DE) doesn’t need to wait for next Monday’s tariff cut. In Q2 fiscal 2026, Deere booked a $272 million recovery tied to the Supreme Court’s invalidation of IEEPA tariffs, flowing straight through production costs. That’s real cash, already on the P&L, before this latest derivative-tariff rollback kicks in. The next leg adds margin on top of margin.
The cycle setup matters as much as the tariff math. Deere’s Q2 FY26 numbers: EPS of $6.55, revenue of $13.37 billion (up 6.7% year over year), and Construction & Forestry net sales up 29% with margins expanded to 14.8%. The kicker comes from CEO John May, who said “2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.” A trough call from the largest player in the space is the kind of statement you build a position around.
Shares are up about 25% year-to-date, with a 9% pop in just the past week. The next stock on this list is smaller, more concentrated, and just raised its own guidance with the old tariff regime fully baked in.
#4. AGCO Corporation (AGCO): Guidance Raised Before the Cut AGCO Corporation (NYSE:AGCO) is the pure-play farm equipment name, the company most directly in the line of fire when crop prices are near breakeven and tariff costs are crushing the North American business. Management has been explicit that tariff input costs pushed the North America segment’s operating margin into negative territory. Cut the tariff, and the most painful piece of AGCO’s footprint stops bleeding.
What makes this trade asymmetric: AGCO already raised full-year 2026 guidance, and that guidance assumes tariff policies as of May 5, 2026 remain in place. Specifically: net sales of $10.50–$10.70 billion, adjusted operating margins of 7.5%–8.0%, and adjusted EPS of approximately $6.00. The Q1 report itself was a blowout: adjusted EPS of $0.94 versus a $0.44 estimate, with EMEA delivering near-record Q1 operating margin of 16.2% on $1.60 billion in sales (up 20.3%). Tariff relief on the North American business is the upside that isn’t in the guide.
Capital returns sweeten the setup: dividend raised to $0.30 per share and a $350 million buyback program starting Q2 2026. AGCO trades at a trailing P/E of 11, with the stock up 14% year-to-date. Cheap, levered, and now getting a tariff tailwind it didn’t price in. The last name on this list is cheaper still, and more leveraged to this exact catalyst than anything else on the desk.
#5. CNH Industrial (CNH): The Maximum-Torque Rebound Here’s the payoff. CNH Industrial (NYSE:CNH) straddles both agriculture and construction equipment through Case IH and New Holland. It is the most tariff-exposed name on this list, the smallest market cap, and trading near cycle lows. When the relief check arrives, CNH has the most operating leverage to it.
The number that matters: in Q1 2026, CNH revised its Construction segment tariff margin impact upward to approximately 600 basis points, from 500 bps previously. Management has explicitly stated a long-term target of 7–8% Construction adjusted EBIT margin at mid-cycle, versus current FY 2026 guidance of 1.0%–2.0%. CEO Gerrit Marx said “We believe the industry is moving through the lowest period of the current agriculture cycle, assuming global trade routes are open.” Trade routes are about to get more open.
The setup writes itself: a forward P/E of 23, PEG ratio of 0.56, analyst target price of $13.25 against a stock that’s been left for dead. Shares are up 20% year-to-date but still down 11% over the past year and down 30% over five years. The smallest name on this list, with the largest tariff exposure, sitting at the bottom of the cycle, just as the policy reverses.
The Window Five companies. One policy lever. Carrier captures the housing and AI-cooling angle the market hasn’t connected. Caterpillar and Deere are the heavyweights with backlogs and refunds already in motion. AGCO already raised guidance with the old tariffs intact. CNH carries the maximum torque on the rebound. The cut starts next Monday, per the Marketplace report, and the names most exposed to the headwind are the ones most levered to the relief. The trade is to figure out which one matches your risk tolerance before next Monday closes the gap.
A month has gone by since the last earnings report for Agco (AGCO - Free Report) . Shares have lost about 0.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Agco due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for AGCO Corporation before we dive into how investors and analysts have reacted as of late.
AGCO Corp. Q1 Earnings Beat Estimates, Sales Up Y/YAGCO posted adjusted earnings of 94 cents per share for the first quarter of 2026, handily beating the Zacks Consensus Estimate of 44 cents. The quarter’s adjusted figure compared with 41 cents a year ago.
Including one-time items, earnings were 76 cents per share compared with 14 cents in the year-ago quarter.
Net sales rose 14.3% year over year to $2.34 billion and edged past the Zacks Consensus Estimate of $2.30 billion. The company pointed to disciplined execution in a challenging market, with outperformance in high-horsepower equipment and precision agriculture, even as North America industry unit retail tractor sales were down 8% year over year in the quarter.
Gross Margin Down Y/YCost of sales increased 15.1% year over year to $1.76 billion in the first quarter. Gross profit rose 11.7% year over year to $581.4 million in the reported quarter. The gross margin was 24.8% compared with the prior-year quarter’s 25.4%. Selling, general and administrative expenses were $339.1 million compared with the year-ago quarter’s $325.8 million. Adjusted income from operations increased 28.8% year over year to $107.4 million. The adjusted operating margin was 4.6% compared with the year-earlier quarter’s 4.1%.
Q1 Segmental PerformanceSales in the North America segment increased 10% year over year to $406.4 million in the first quarter. The segment reported an operating loss of $51 million compared with the prior-year quarter’s operating loss of $24.2 million.
Sales in the Latin America segment decreased 17.3% year over year to $211.7 million. The segment reported an operating loss of $40.9 million against the year-ago quarter’s operating income of $6.5 million.
The EME (Europe/Middle East) segment’s sales were $1.60 billion compared with $1.33 billion in the year-ago period, up 20.3% year over year. EME’s operating income was $259 million compared with the year-ago quarter’s $154.4 million.
Sales in the Asia/Pacific/Africa segment increased 31.2% year over year to $124 million. The segment reported an operating profit of $4 million against the prior-year quarter’s operating loss of $2.7 million.
Cash Flow UpdateAGCO Corp reported cash and cash equivalents of $514.9 million as of Mar. 31, 2026, down from $861.8 million as of Dec. 31, 2025. Net cash used in operating activities totaled $410.4 million in the quarter compared with $122.2 million in the year-ago quarter.
Lifts 2026 EPS ViewThe company increased its full-year adjusted earnings per share outlook to approximately $6.00. AGCO also raised its regular quarterly dividend to $0.30 per share from $0.29, reinforcing its commitment to returning cash to shareholders.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresCurrently, Agco has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Agco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAgco is part of the Zacks Manufacturing - Farm Equipment industry. Over the past month, CNH Industrial (CNH - Free Report) , a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2026 more than a month ago.
CNH reported revenues of $3.83 billion in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $0.01 for the same period compares with $0.10 a year ago.
CNH is expected to post earnings of $0.11 per share for the current quarter, representing a year-over-year change of -35.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
CNH has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.55; value investors should take notice.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $5.99 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AGCO should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
United Bankshares (UBSI - Free Report) is headquartered in Charleston, and is in the Finance sector. The stock has seen a price change of 2.27% since the start of the year. The holding company for United Bank is paying out a dividend of $0.38 per share at the moment, with a dividend yield of 3.87% compared to the Banks - Southeast industry's yield of 2.14% and the S&P 500's yield of 1.46%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, with earnings expected to increase 8.26% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
From the mortgage meltdown in 2009, which almost collapsed the global financial system, to the Long-Term Capital Management implosion in 1998, which required a Federal Reserve bailout, it always seems to come back to the same issues: leverage and debt. Once again, it appears we are at the same doorstep we arrive at every 10 to 15 years. This time, it’s private credit, which carries massive risks that investors often underestimate or misunderstand. Private credit loans typically flow to smaller, heavily leveraged borrowers who are most vulnerable when the economy turns.
Unlike public corporate and government bonds, there’s no liquid market to exit when trouble appears. Valuations are largely self-reported, just like in 1998 and 2009, making it difficult to know what these assets are actually worth until losses are realized. Covenant-lite structures have stripped away the early-warning protections that lenders once relied on, leaving little recourse before a borrower deteriorates. Then, when investors rush for the exits, the resulting liquidity mismatch between funds promising redemptions and assets that can’t be sold quickly can amplify a manageable problem into a serious one. That very well could be where we stand now.
We decided to screen the 24/7 Wall St. financial stocks research database and, combined with a separate AI search, we found five quality companies in the financial arena with little or no exposure to the private credit market. These companies are high-quality industry leaders with wide moats, and many are not in the business of lending money at all. We then screened the list for the stocks that paid the highest dividends, and five companies with long track records of success emerged. Four of the five are rated Buy by the top Wall Street firms we cover, and all offer outstanding value now as the major indices near correction territory.
ADP This company, founded in 1949, is a global leader in payroll and HR services and provides cloud-based software trusted by over 80% of Fortune 100 companies. Automatic Data Processing (NYSE: ADP | ADP Price Prediction) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration.
ADP benefits from its dominant position in payroll and HR services, with highly recurring, subscription-like revenue. The company is a Dividend King with a moat built on switching costs, not lending. It has raised its dividend for 51 consecutive years, with a current yield of 3% and a payout ratio of 59%, which is well covered by its recurring SaaS-like payroll revenues.
Its segments include:
Employer Services Professional Employer Organization (PEO) The Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees worldwide, offering a range of technology-based HCM solutions, including its cloud-based platforms and human resource outsourcing (HRO) solutions (other than PEO).
The company’s offerings include:
Payroll Services Benefits Administration Talent Management HR Management Workforce Management Compliance Services Insurance Services Retirement Services Its PEO business, called ADP TotalSource, provides clients with employment administration outsourcing solutions. ADP serves over 1.1 million clients in 140 countries and territories.
Guggenheim has a Buy rating with a $270 target price.
Chubb Warren Buffett and Berkshire Hathaway own the shares and have increased their position over the last year. Chubb (NYSE: CB) provides a broad range of insurance and reinsurance products globally across commercial, personal, agricultural, and life segments and pays a 1.18% dividend.
Its offerings include:
Property and casualty Liability Crop and specialty insurance Reinsurance and life products such as annuities and employee benefits Risk management and claims services Chubb has raised its dividend for 17 consecutive years, with a payout ratio of just 14.6%, one of the lowest in the industry, leaving an enormous cushion. As a Property and Casualty insurer, it doesn’t rely on private credit to yield the way life insurers do.
Citigroup has a Buy rating for the shares with a $385 price target.
CME This company stands out as a top yield opportunity. CME Group (NYSE: CME) announced a $ 6.15-per-share annual variable dividend tied to its 2025 performance, in addition to a $ 1.30-per-share regular dividend for the first quarter, bringing the total yield to 4.2% based on average 2025 closing prices. Unlike private credit firms, CME generates revenue from derivatives trading and tends to benefit from market volatility rather than stability.
CME provides a derivatives marketplace that enables clients to trade futures, options, cash, and over-the-counter (OTC) markets, optimize portfolios, and analyze data. It offers a range of global benchmark products across all major asset classes, including interest rates, equity indexes, foreign exchange (FX), energy, agricultural products, and metals.
It offers futures and options trading on the CME Globex platform, fixed-income trading via BrokerTec, and FX trading on the EBS platform.
In addition, it operates a central counterparty clearing provider, CME Clearing. Its products provide a means to hedge, speculate, and allocate assets related to risks associated with, among other things, interest-rate-sensitive instruments and changes in the prices of agricultural, energy, and metal commodities. It provides clearing and settlement services for a range of exchange-traded futures and options on futures contracts, as well as OTC derivatives.
Jefferies has a Buy rating and a $356 target price.
T. Rowe Price This is a top mutual fund company with tremendous assets under management, and it pays a substantial dividend. T. Rowe Price (NASDAQ: TROW) is a financial services holding company that provides global investment advisory services to investors. This company is the standout here, with an annual dividend of $5.20/share, yielding 5.83%, and its last ex-dividend date was March 16, 2026. It manages mutual funds and retirement accounts with no private credit on the balance sheet whatsoever. The Dividend Aristocrat has $1.8 trillion in assets under management, boosted by strong performance in actively managed funds and growing retirement market focus.
The company offers a range of investment solutions across equity, fixed income, multi-asset, and alternative capabilities, catering to clients from individuals to advisors, institutions, and retirement plan sponsors.
The firm also provides specific investment advisory clients with related administrative services, including:
Distribution Mutual fund transfer agent Accounting Shareholder services Participant record-keeping Transfer agent services for defined contribution retirement plans Brokerage services Trust services Non-discretionary advisory services through model delivery It distributes its array of active investment solutions through a diverse set of distribution channels and vehicles.
These vehicles include a variety of U.S. mutual funds, collective investment trusts, exchange-traded funds, subadvised funds, separately managed accounts, and other sponsored products.
Morgan Stanley has an Equal Weight rating with a $115 price target.
United Bancshares United Bancshares (NASDAQ: UBSI) is a bank holding company with dual headquarters in Charleston, West Virginia, and Fairfax, Virginia. It primarily provides commercial and retail banking products and services in the United States. This company is the one bank on this list worth owning for income. United Bancshares has raised its dividend for 51 consecutive years, yielding 3.79%, and is a true Dividend King rooted in community banking across the mid-Atlantic region since 1839. As a traditional community bank, it has no material private credit exposure
It operates through two segments:
Community Banking Mortgage Banking The company accepts:
Checking, savings, and time and money market accounts Individual retirement accounts and demand deposits Statement and special savings NOW accounts Its loan products include:
Commercial loans and leases to small to mid-size industrial and commercial companies Construction and real estate loans, such as commercial and residential mortgages Loans secured by owner-occupied real estate Personal, student, and credit card receivables Personal, commercial, and floor plan loans Home equity loans In addition, the company offers credit cards, safe deposit boxes, wire transfers, and other banking products and services, as well as investment and security services. It also provides services to correspondent banks, including buying and selling federal funds, automated teller machine services, and internet and telephone banking services.
Furthermore, it provides community banking services, including asset management, real property title insurance, financial planning, mortgage banking, brokerage services, investment management, and retirement planning.
Piper Sandler has a Buy rating with a $47 price target.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Charleston, United Bankshares (UBSI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 5.96%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 3.74%. In comparison, the Banks - Southeast industry's yield is 2.15%, while the S&P 500's yield is 1.51%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, which represents a year-over-year growth rate of 8.26%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Fvcbankcorp (NASDAQ:FVCB – Get Free Report) and United Bankshares (NASDAQ:UBSI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Dividends Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. United Bankshares pays an annual dividend of $1.52 per share and has a dividend yield of 3.6%. Fvcbankcorp pays out 19.8% of its earnings in the form of a dividend. United Bankshares pays out 46.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Bankshares has raised its dividend for 26 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability This table compares Fvcbankcorp and United Bankshares’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Fvcbankcorp 18.08% 8.92% 0.97% United Bankshares 25.51% 8.60% 1.40% Institutional and Insider Ownership 43.6% of Fvcbankcorp shares are held by institutional investors. Comparatively, 70.8% of United Bankshares shares are held by institutional investors. 10.9% of Fvcbankcorp shares are held by company insiders. Comparatively, 3.5% of United Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk Fvcbankcorp has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, United Bankshares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Valuation and Earnings This table compares Fvcbankcorp and United Bankshares”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Fvcbankcorp $122.03 million 2.23 $22.06 million $1.21 12.56 United Bankshares $1.82 billion 3.19 $464.60 million $3.27 12.75 United Bankshares has higher revenue and earnings than Fvcbankcorp. Fvcbankcorp is trading at a lower price-to-earnings ratio than United Bankshares, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a summary of current recommendations and price targets for Fvcbankcorp and United Bankshares, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Fvcbankcorp 0 1 2 0 2.67 United Bankshares 0 3 2 0 2.40 Fvcbankcorp presently has a consensus target price of $18.00, suggesting a potential upside of 18.42%. United Bankshares has a consensus target price of $44.67, suggesting a potential upside of 7.17%. Given Fvcbankcorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Fvcbankcorp is more favorable than United Bankshares.
Summary United Bankshares beats Fvcbankcorp on 11 of the 16 factors compared between the two stocks.
About Fvcbankcorp (Get Free Report)
FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.
About United Bankshares (Get Free Report)
United Bankshares, Inc., through its subsidiaries, primarily provides commercial and retail banking products and services in the United States. It operates through two segments, Community Banking and Mortgage Banking. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. Its loan products include commercial loans and leases to small to mid-size industrial and commercial companies; construction and real estate loans, such as commercial and residential mortgages, and loans secured by owner-occupied real estate; personal, student, credit card receivables, personal, commercial, and floor plan loans; and home equity loans. In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services. Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services, as well as investment management and retirement planning services. United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.
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SG Americas Securities LLC lifted its stake in United Bankshares, Inc. (NASDAQ:UBSI – Free Report) by 168.3% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 56,866 shares of the financial services provider’s stock after purchasing an additional 35,673 shares during the period. SG Americas Securities LLC’s holdings in United Bankshares were worth $2,184,000 at the end of the most recent quarter.
Other institutional investors have also made changes to their positions in the company. Norges Bank bought a new stake in United Bankshares in the second quarter valued at approximately $60,618,000. First Trust Advisors LP boosted its position in shares of United Bankshares by 367.5% during the second quarter. First Trust Advisors LP now owns 1,935,979 shares of the financial services provider’s stock worth $70,528,000 after purchasing an additional 1,521,864 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of United Bankshares by 65.5% in the 3rd quarter. AQR Capital Management LLC now owns 930,252 shares of the financial services provider’s stock valued at $34,615,000 after buying an additional 368,141 shares during the period. JPMorgan Chase & Co. grew its holdings in shares of United Bankshares by 64.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 782,292 shares of the financial services provider’s stock valued at $29,109,000 after buying an additional 307,159 shares during the period. Finally, Verition Fund Management LLC increased its position in shares of United Bankshares by 89.5% in the 3rd quarter. Verition Fund Management LLC now owns 520,964 shares of the financial services provider’s stock valued at $19,385,000 after buying an additional 246,006 shares in the last quarter. 70.80% of the stock is owned by institutional investors and hedge funds.
United Bankshares Stock Performance United Bankshares stock opened at $41.87 on Friday. The stock has a 50-day simple moving average of $41.96 and a 200 day simple moving average of $39.30. The stock has a market capitalization of $5.84 billion, a P/E ratio of 12.80 and a beta of 0.73. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.98 and a current ratio of 0.99. United Bankshares, Inc. has a 52 week low of $30.50 and a 52 week high of $45.92.
United Bankshares (NASDAQ:UBSI – Get Free Report) last announced its quarterly earnings results on Thursday, January 22nd. The financial services provider reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.05. The business had revenue of $430.85 million during the quarter, compared to the consensus estimate of $315.50 million. United Bankshares had a return on equity of 8.60% and a net margin of 25.51%.During the same quarter last year, the firm posted $0.69 EPS. Analysts expect that United Bankshares, Inc. will post 2.81 earnings per share for the current year.
United Bankshares Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were paid a dividend of $0.38 per share. The ex-dividend date was Friday, March 13th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.6%. United Bankshares’s dividend payout ratio (DPR) is 46.48%.
Analysts Set New Price Targets A number of equities research analysts recently commented on the stock. Keefe, Bruyette & Woods raised their price objective on shares of United Bankshares from $40.00 to $43.00 and gave the stock a “market perform” rating in a report on Monday, January 26th. Stephens increased their target price on United Bankshares from $40.00 to $44.00 and gave the stock an “equal weight” rating in a report on Friday, January 23rd. Zacks Research downgraded United Bankshares from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 26th. Piper Sandler restated an “overweight” rating and issued a $47.00 price target on shares of United Bankshares in a report on Monday, January 26th. Finally, Weiss Ratings raised United Bankshares from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, February 13th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $44.67.
Check Out Our Latest Research Report on United Bankshares
United Bankshares Company Profile (Free Report)
United Bankshares, Inc, headquartered in Charleston, West Virginia, is a bank holding company that provides a full range of financial services through its primary subsidiary, United Bank. The company’s core offerings include retail and commercial banking products such as checking and savings accounts, certificates of deposit, personal and business loans, mortgages, and treasury management services. In addition, United Bankshares delivers private banking, wealth management, trust and fiduciary solutions, and investment advisory services to meet the needs of individual, corporate, and institutional clients.
United Bankshares operates an extensive branch network across West Virginia, Virginia, Maryland, the District of Columbia, Ohio, Pennsylvania, and South Carolina.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Charleston, United Bankshares (UBSI - Free Report) is a Finance stock that has seen a price change of 13.28% so far this year. The holding company for United Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.49%. This compares to the Banks - Southeast industry's yield of 2.04% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UBSI for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.54 per share, with earnings expected to increase 8.26% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
United Bankshares has rebounded post-Piedmont Bancorp integration, delivering record FY 2025 net income and EPS and outperforming previous expectations. UBSI's operational improvements include a 1.41% ROA, 8.63% ROE, a 48.5% efficiency ratio, and a net interest margin of 3.83%, all trending positively. Asset quality has strengthened, with nonperforming loans at 0.41% and net charge-offs reduced to 0.15%, positioning UBSI well for FY 2026.
WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)--United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the first quarter of 2026 of $124.2 million, or $0.89 per diluted share. First quarter of 2026 results produced annualized returns on average assets, average shareholders’ equity, and average tangible common equity, a non-GAAP measure, of 1.49%, 9.08%, and 14.40%, respectively.
“Against the backdrop of geopolitical and macroeconomic uncertainties, UBSI continues to deliver resilient results,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “Strong earnings, sound asset quality, and efficient capital allocation highlight the first quarter, and we are well-positioned for success going forward.”
Earnings for the fourth quarter of 2025 were $128.8 million, or $0.91 per diluted share, and annualized returns on average assets, average shareholders’ equity, and average tangible common equity for the fourth quarter of 2025 were 1.52%, 9.31%, and 14.86%, respectively. Earnings for the first quarter of 2025 were $84.3 million, or $0.59 per diluted share, and annualized returns on average assets, average shareholders’ equity, and average tangible common equity were 1.06%, 6.47%, and 10.61%, respectively. United completed its acquisition of Atlanta-based Piedmont Bancorp, Inc. (“Piedmont”) on January 10, 2025. The first quarter of 2025 included $30.0 million, or approximately $0.17 per diluted share, in merger-related noninterest expenses and merger-related provision for credit losses.
First quarter of 2026 compared to the fourth quarter of 2025
Earnings for the first quarter of 2026 were $124.2 million, or $0.89 per diluted share, as compared to earnings of $128.8 million, or $0.91 per diluted share, for the fourth quarter of 2025.
Net interest income for the first quarter of 2026 was $282.5 million, a decrease of $4.9 million, or 2%, from the fourth quarter of 2025. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, decreased $5.0 million, or 2%, from the fourth quarter of 2025. The net interest margin was 3.80% and 3.83% for first quarter of 2026 and the fourth quarter of 2025, respectively. The interest rate spread for the first quarter of 2026 increased 2 basis points to 3.06% from the fourth quarter of 2025 due to a 14 basis point decrease in the average cost of funds partially offset by a 12 basis point decrease in the yield on average earning assets. The decrease in the average cost of funds was primarily due to a 14 basis point decrease in the average rate paid on interest-bearing deposits. The decrease in the yield on average earning assets was primarily due to an 11 basis point decrease in the yield on average net loans and loans held for sale, a 26 basis point decrease in the yield on average short-term investments and lower acquired loan accretion income. Acquired loan accretion income was $7.5 million and $8.5 million for the first quarter of 2026 and fourth quarter of 2025, respectively.
The provision for credit losses for the first quarter of 2026 was $7.8 million as compared to $6.8 million for the fourth quarter of 2025. The provision for credit losses for the first quarter of 2026 reflected $5.7 million of net charge-offs and a $2.1 million increase in the allowance for loan & lease losses from the prior quarter-end. The provision for credit losses for the fourth quarter of 2025 reflected $9.3 million of net charge-offs and a $2.5 million decrease in the allowance for loan & lease losses from the prior quarter-end.
Noninterest income for the first quarter of 2026 was $34.1 million, an increase of $3.1 million, or 10%, from the fourth quarter of 2025. Net gains on investment securities were $2.3 million for the first quarter of 2026 as compared to net losses on investment securities of $218 thousand for the fourth quarter of 2025. Net gains on investment securities for the first quarter of 2026 were primarily due to gains on sales of equity securities. Fees from brokerage services increased $1.4 million from the fourth quarter of 2025 to $7.4 million, primarily due to higher volume driven by growth in the business.
Noninterest expense for the first quarter of 2026 of $152.8 million was relatively flat from the fourth quarter of 2025, slightly increasing $1.1 million, or less than 1%. An increase in employee benefits of $3.0 million and an increase in Federal Deposit Insurance Corporation (“FDIC”) insurance expense of $1.1 million was mostly offset by a $1.1 million decrease in data processing and smaller decreases in several other categories of noninterest expense. The increase in employee benefits was primarily due to higher Federal Insurance Contributions Act (“FICA”) and postretirement benefit costs. FDIC insurance expense for the fourth quarter of 2025 included a $1.2 million reduction of expense reflecting the FDIC’s reduced estimates related to the special assessment. The decrease in data processing was primarily due to technology contract renegotiations.
Income tax expense for the first quarter of 2026 was $31.8 million as compared to $31.1 million for the fourth quarter of 2025. This increase in income tax expense was primarily due to the impact of a higher effective tax rate partially offset by lower earnings. United’s effective tax rate was 20.4% and 19.4% for the first quarter of 2026 and fourth quarter of 2025, respectively. The effective tax rate for the fourth quarter of 2025 reflected the impact of provision to return adjustments.
First quarter of 2026 compared to the first quarter of 2025
Earnings for the first quarter of 2026 were $124.2 million, or $0.89 per diluted share, as compared to earnings of $84.3 million, or $0.59 per diluted share, for the first quarter of 2025.
Net interest income for the first quarter of 2026 increased $22.5 million, or 9%, from the first quarter of 2025. Tax-equivalent net interest income also increased $22.5 million, or 9%, from the first quarter of 2025. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average net loans and loans held for sale and a lower average rate paid on interest-bearing deposits. These increases to net interest income and tax-equivalent net interest income were partially offset by an increase in average interest-bearing deposits. Average net loans and loans held for sale increased $1.4 billion, or 6%, from the first quarter of 2025. The average rate paid on interest-bearing deposits decreased 36 basis points from the first quarter of 2025. Average interest-bearing deposits increased $1.2 billion, or 6%, from the first quarter of 2025. The net interest margin of 3.80% for the first quarter of 2026 was an increase of 11 basis points from the net interest margin of 3.69% for the first quarter of 2025.
The provision for credit losses was $7.8 million for the first quarter of 2026. The provision for credit losses was $29.1 million for the first quarter of 2025, which included $18.7 million of provision recorded on purchased non-credit deteriorated (“non-PCD”) loans from Piedmont.
Noninterest income for the first quarter of 2026 increased $4.5 million, or 15%, from the first quarter of 2025, driven by increases in net gains on investment securities of $1.7 million and fees from brokerage services of $1.8 million. Net gains on investment securities of $2.3 million for the first quarter of 2026 were primarily due to gains on the aforementioned sales of equity securities. The increase in fees from brokerage services was primarily due to higher volume driven by growth in the business.
Noninterest expense for the first quarter of 2026 was $152.8 million while noninterest expense was $153.6 million for the first quarter of 2025, which included $11.3 million in merger-related expenses. A $5.2 million decrease in other noninterest expense and a $1.5 million decrease in data processing were partially offset by a $2.7 million increase in employee benefits and a $2.6 million increase in employee compensation. Other noninterest expense for the first quarter of 2025 included $6.0 million of merger-related expenses. The decrease in data processing was primarily due to the aforementioned technology contract renegotiations. The increase in employee benefits was primarily due to higher postretirement benefit and FICA costs. The increase in employee compensation was primarily due to higher employee incentives and higher brokerage commissions. Employee compensation for the first quarter of 2025 included $1.2 million in merger-related expenses. Additionally, the expense for the reserve for unfunded loan commitments was $2.0 million and $1.7 million for the first quarter of 2026 and the first quarter of 2025, respectively. The expense for the reserve for unfunded loan commitments for the first quarter of 2026 was primarily due to an increase in the outstanding balance of loan commitments from the prior quarter-end. The expense for the reserve for unfunded loan commitments for the first quarter of 2025 included $4.1 million in merger-related expense from the acquisition.
Income tax expense for the first quarter of 2026 was $31.8 million as compared to $22.6 million for the first quarter of 2025. This increase in income tax expense was primarily due to the impact of higher earnings partially offset by a lower effective tax rate. United’s effective tax rate was 20.4% and 21.2% for the first quarter of 2026 and first quarter of 2025, respectively.
Credit Quality
At March 31, 2026, non-performing loans (“NPLs”) were $102.8 million, or 0.41% of loans & leases, net of unearned income. Total non-performing assets (“NPAs”) were $113.2 million, including other real estate owned (“OREO”) of $10.4 million, or 0.34% of total assets at March 31, 2026. At December 31, 2025, NPLs were $101.5 million, or 0.41% of loans & leases, net of unearned income. Total NPAs were $110.3 million, including OREO of $8.9 million, or 0.33% of total assets at December 31, 2025.
As of March 31, 2026, the allowance for loan & lease losses was $299.6 million, or 1.20% of loans & leases, net of unearned income. At December 31, 2025, the allowance for loan & lease losses was $297.5 million, or 1.20% of loans & leases, net of unearned income.
Net charge-offs were $5.7 million, or 0.09% on an annualized basis as a percentage of average loans & leases, net of unearned income for the first quarter of 2026. Net charge-offs were $9.3 million, or 0.15% on an annualized basis as a percentage of average loans & leases, net of unearned income for the fourth quarter of 2025. Net charge-offs were $8.0 million, or 0.14% on an annualized basis as a percentage of average loans & leases, net of unearned income for the first quarter of 2025.
Capital
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.5% at March 31, 2026, while estimated Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios are 13.3%, 13.3%, and 11.2%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a leverage ratio of 5.0%.
During the first quarter of 2026, United repurchased, under a previously announced stock repurchase plan, approximately 1.7 million shares of its common stock at an average price per share of $39.92.
About United Bankshares, Inc.
United Bankshares, Inc. (NASDAQ: UBSI) is a financial services company with consolidated assets of approximately $34 billion as of March 31, 2026. United is the 38th largest banking company in the U.S. based on market capitalization. It is the parent company of United Bank, which comprises over 240 offices located across Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. For more information, visit ubsi-inc.com.
Cautionary Statements
The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its March 31, 2026 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2026 and will adjust amounts preliminarily reported, if necessary.
Use of non-GAAP Financial Measures
This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in the banking industry.
Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, average tangible common equity, return on average tangible common equity, and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.
Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.
Tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis and considering net income, a return on average tangible common equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of shareholders’ equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.
Forward-Looking Statements
In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: (1) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve and the trade and tariff policies; (2) general competitive, economic, political and market conditions and other factors that may affect future results of United, including changes in asset quality and credit risk; the economic impact of oil and gas prices; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms; (3) deposit attrition, client loss or revenue loss following completed mergers or acquisitions that may be greater than anticipated; (4) regulatory change risk resulting from new laws, rules, regulations, or accounting principles, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and the possibility of changes in accounting standards, policies, principles and practices; (5) the cost and effects of cyber incidents or other failures, interruptions, or security breaches of United’s systems and those of our customers or third-party providers; (6) competitive pressures on product pricing and services; (7) success, impact, and timing of United’s business strategies, including market acceptance of any new products or services; (8) volatility and disruptions in global capital and credit markets; (9) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions; (10) catastrophic events such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including public health crises and infectious disease outbreaks, as well as any government actions in response to such events; (11) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; (12) the risks of fluctuations in market prices for United common stock that may or may not reflect economic condition or performance of United; and (13) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
EARNINGS SUMMARY:
March
2026
December
2025
March
2025
Interest income
$
415,929
$
430,053
$
403,647
Interest expense
133,414
142,596
143,592
Net interest income
282,515
287,457
260,055
Provision for credit losses
7,776
6,779
29,103
Noninterest income
34,063
30,936
29,554
Noninterest expense
152,814
151,718
153,573
Income before income taxes
155,988
159,896
106,933
Income taxes
31,788
31,068
22,627
Net income
$
124,200
$
128,828
$
84,306
PER COMMON SHARE:
Net income:
Basic
$
0.89
$
0.92
$
0.59
Diluted
0.89
0.91
0.59
Cash dividends
0.38
0.38
0.37
Book value
39.65
39.29
37.19
Closing market price
$
41.42
$
38.40
$
34.67
Common shares outstanding:
Actual at period end, net of treasury shares
138,431,009
139,880,247
142,891,148
Weighted average-basic
139,566,209
140,481,274
142,330,694
Weighted average-diluted
140,092,196
140,980,184
142,698,118
FINANCIAL RATIOS:
Return on average assets
1.49%
1.52%
1.06%
Return on average shareholders’ equity
9.08%
9.31%
6.47%
Return on average tangible common equity (non-GAAP)(1)
14.40%
14.86%
10.61%
Average shareholders’ equity to average assets
16.45%
16.35%
16.42%
Net interest margin
3.80%
3.83%
3.69%
PERIOD END BALANCES:
March 31
2026
December 31
2025
March 31
2025
Assets
$
33,705,380
$
33,660,281
$
32,788,494
Earning assets
30,034,591
30,014,321
29,106,693
Loans & leases, net of unearned income
24,863,138
24,709,122
23,863,072
Loans held for sale
29,235
31,277
28,642
Investment securities
3,530,568
3,400,400
3,313,997
Total deposits
27,120,883
27,060,939
26,364,635
Shareholders’ equity
5,488,126
5,495,983
5,314,449
Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Statements of Income
Three Months Ended
March
December
March
2026
2025
2025
Interest & Loan Fees Income (GAAP)
$
415,929
$
430,053
$
403,647
Tax equivalent adjustment
780
796
782
Interest & Fees Income (FTE) (non-GAAP)
416,709
430,849
404,429
Interest Expense
133,414
142,596
143,592
Net Interest Income (FTE) (non-GAAP)
283,295
288,253
260,837
Provision for Credit Losses
7,776
6,779
29,103
Noninterest Income:
Fees from trust services
4,857
5,079
4,782
Fees from brokerage services
7,403
5,958
5,645
Fees from deposit services
9,577
9,879
9,307
Bankcard fees and merchant discounts
1,977
2,202
1,751
Other charges, commissions, and fees
1,099
1,211
1,081
Income from bank-owned life insurance
2,994
2,751
3,370
Income from mortgage banking activities
2,555
1,990
2,479
Net gains (losses) on investment securities
2,265
(218)
521
Other noninterest income
1,336
2,084
618
Total Noninterest Income
34,063
30,936
29,554
Noninterest Expense:
Employee compensation
63,493
64,167
60,866
Employee benefits
15,980
12,967
13,291
Net occupancy
13,013
12,180
12,601
Data processing
7,001
8,080
8,455
Amortization of intangibles
1,838
2,340
2,341
OREO expense
475
433
22
Net (gains) on the sale of OREO properties
-
(153)
(11)
Equipment expense
8,740
9,244
8,582
FDIC insurance expense
4,476
3,417
4,728
Expense for the reserve for unfunded loan commitments
1,972
2,436
1,657
Other noninterest expense
35,826
36,607
41,041
Total Noninterest Expense
152,814
151,718
153,573
Income Before Income Taxes (FTE) (non-GAAP)
156,768
160,692
107,715
Tax equivalent adjustment
780
796
782
Income Before Income Taxes (GAAP)
155,988
159,896
106,933
Taxes
31,788
31,068
22,627
Net Income
$
124,200
$
128,828
$
84,306
MEMO: Effective Tax Rate
20.38%
19.43%
21.16%
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Balance Sheets
March 31
December 31
March 31
2026
2025
2025
Cash & Cash Equivalents
$
2,305,034
$
2,542,250
$
2,610,183
Securities Available for Sale
3,212,072
3,059,452
3,002,984
Less: Allowance for credit losses
-
-
-
Net available for sale securities
3,212,072
3,059,452
3,002,984
Securities Held to Maturity
1,020
1,020
1,020
Less: Allowance for credit losses
(16)
(16)
(18)
Net held to maturity securities
1,004
1,004
1,002
Equity Securities
12,248
34,760
21,514
Other Investment Securities
305,244
305,184
288,497
Total Securities
3,530,568
3,400,400
3,313,997
Total Cash and Securities
5,835,602
5,942,650
5,924,180
Loans held for sale
29,235
31,277
28,642
Commercial Loans & Leases
19,160,057
19,049,978
18,308,502
Mortgage Loans
4,896,513
4,854,418
4,768,669
Consumer Loans
818,169
816,224
796,907
Gross Loans
24,874,739
24,720,620
23,874,078
Unearned income
(11,601)
(11,498)
(11,006)
Loans & Leases, net of unearned income
24,863,138
24,709,122
23,863,072
Allowance for Loan & Lease Losses
(299,599)
(297,518)
(310,424)
Net Loans
24,563,539
24,411,604
23,552,648
Goodwill
2,018,848
2,018,848
2,023,604
Other Intangibles
30,429
32,267
39,289
Operating Lease Right-of-Use Asset
87,841
89,312
86,832
Other Real Estate Owned
10,390
8,857
1,475
Bank-Owned Life Insurance
551,306
547,127
538,733
Other Assets
578,190
578,339
593,091
Total Assets
$
33,705,380
$
33,660,281
$
32,788,494
MEMO: Interest-earning Assets
$
30,034,591
$
30,014,321
$
29,106,693
Interest-bearing Deposits
$
20,710,965
$
20,487,309
$
19,883,758
Noninterest-bearing Deposits
6,409,918
6,573,630
6,480,877
Total Deposits
27,120,883
27,060,939
26,364,635
Short-term Borrowings
166,175
198,573
176,015
Long-term Borrowings
532,216
531,817
550,623
Total Borrowings
698,391
730,390
726,638
Operating Lease Liability
93,921
95,392
91,921
Other Liabilities
304,059
277,577
290,851
Total Liabilities
28,217,254
28,164,298
27,474,045
Preferred Equity
-
-
-
Common Equity
5,488,126
5,495,983
5,314,449
Total Shareholders' Equity
5,488,126
5,495,983
5,314,449
Total Liabilities & Shareholders’ Equity
$
33,705,380
$
33,660,281
$
32,788,494
MEMO: Interest-bearing Liabilities
$
21,409,356
$
21,217,699
$
20,610,396
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Average Balance Sheets
March 2026
December 2025
March 2025
Q-T-D Average
Q-T-D Average
Q-T-D Average
Cash & Cash Equivalents
$
2,486,561
$
2,564,586
$
2,376,426
Securities Available for Sale
3,089,155
3,023,817
3,047,164
Less: Allowance for credit losses
-
-
-
Net available for sale securities
3,089,155
3,023,817
3,047,164
Securities Held to Maturity
1,020
1,020
1,020
Less: Allowance for credit losses
(16)
(17)
(18)
Net held to maturity securities
1,004
1,003
1,002
Equity Securities
23,249
34,840
21,016
Other Investment Securities
307,199
302,743
288,618
Total Securities
3,420,607
3,362,403
3,357,800
Total Cash and Securities
5,907,168
5,926,989
5,734,226
Loans held for sale
26,283
28,415
23,865
Commercial Loans & Leases
19,129,811
19,010,060
17,903,431
Mortgage Loans
4,868,411
4,822,219
4,756,253
Consumer Loans
860,168
855,928
827,996
Gross Loans
24,858,390
24,688,207
23,487,680
Unearned income
(12,170)
(12,551)
(11,885)
Loans & Leases, net of unearned income
24,846,220
24,675,656
23,475,795
Allowance for Loan & Lease Losses
(297,537)
(299,908)
(308,225)
Net Loans
24,548,683
24,375,748
23,167,570
Goodwill
2,018,848
2,018,863
2,022,411
Other Intangibles
31,620
33,785
38,564
Operating Lease Right-of-Use Asset
88,864
90,208
87,363
Other Real Estate Owned
9,160
7,437
467
Bank-Owned Life Insurance
548,690
545,754
534,042
Other Assets
549,895
560,192
571,732
Total Assets
$
33,729,211
$
33,587,391
$
32,180,240
MEMO: Interest-earning Assets
$
30,108,538
$
29,948,501
$
28,568,541
Interest-bearing Deposits
$
20,614,901
$
20,419,740
$
19,367,638
Noninterest-bearing Deposits
6,518,574
6,657,360
6,471,287
Total Deposits
27,133,475
27,077,100
25,838,925
Short-term Borrowings
182,428
167,660
167,080
Long-term Borrowings
531,978
531,594
554,614
Total Borrowings
714,406
699,254
721,694
Operating Lease Liability
94,963
96,175
92,491
Other Liabilities
237,253
222,854
243,588
Total Liabilities
28,180,097
28,095,383
26,896,698
Preferred Equity
-
-
-
Common Equity
5,549,114
5,492,008
5,283,542
Total Shareholders' Equity
5,549,114
5,492,008
5,283,542
Total Liabilities & Shareholders’ Equity
$
33,729,211
$
33,587,391
$
32,180,240
MEMO: Interest-bearing Liabilities
$
21,329,307
$
21,118,994
$
20,089,332
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
March
December
March
Quarterly Share Data:
2026
2025
2025
Earnings Per Share:
Basic
$
0.89
$
0.92
$
0.59
Diluted
$
0.89
$
0.91
$
0.59
Common Dividend Declared Per Share
$
0.38
$
0.38
$
0.37
High Common Stock Price
$
45.92
$
40.52
$
39.56
Low Common Stock Price
$
37.92
$
34.10
$
33.81
Average Shares Outstanding (Net of Treasury Stock):
Basic
139,566,209
140,481,274
142,330,694
Diluted
140,092,196
140,980,184
142,698,118
Common Dividends
$
53,173
$
53,458
$
53,336
Dividend Payout Ratio
42.81%
41.50%
63.26%
March 31
December 31
March 31
EOP Share Data:
2026
2025
2025
Book Value Per Share
$
39.65
$
39.29
$
37.19
Tangible Book Value Per Share (non-GAAP) (1)
$
24.84
$
24.63
$
22.76
52-week High Common Stock Price
$
45.92
$
40.52
$
44.43
Date
02/06/26
12/18/25
11/25/24
52-week Low Common Stock Price
$
30.50
$
30.50
$
30.68
Date
04/04/25
04/04/25
6/11/24
EOP Shares Outstanding (Net of Treasury Stock):
138,431,009
139,880,247
142,891,148
Memorandum Items:
Employees (full-time equivalent)
2,749
2,740
2,790
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
5,488,126
$
5,495,983
$
5,314,449
Less: Total Intangibles
(2,049,277)
(2,051,115)
(2,062,893)
Tangible Common Equity (non-GAAP)
$
3,438,849
$
3,444,868
$
3,251,556
÷ EOP Shares Outstanding (Net of Treasury Stock)
138,431,009
139,880,247
142,891,148
Tangible Book Value Per Share (non-GAAP)
$
24.84
$
24.63
$
22.76
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
March 2026
Three Months Ended
December 2025
Three Months Ended
March 2025
Selected Average Balances and Yields:
Average
Average
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities purchased under
agreements to resell and other short-term investments
$
2,238,873
$
20,710
3.75%
$
2,304,536
$
23,288
4.01%
$
2,131,157
$
23,726
4.51%
Investment securities:
Taxable
3,089,971
26,082
3.38%
3,036,563
26,139
3.44%
3,048,058
26,911
3.53%
Tax-exempt
204,728
1,502
2.94%
203,239
1,502
2.96%
197,891
1,486
3.00%
Total securities
3,294,699
27,584
3.35%
3,239,802
27,641
3.41%
3,245,949
28,397
3.50%
Loans and loans held for sale, net of unearned income (2)
24,872,503
368,415
6.00%
24,704,071
379,920
6.11%
23,499,660
352,306
6.07%
Allowance for loan & lease losses
(297,537)
(299,908)
(308,225)
Net loans and loans held for sale
24,574,966
6.07%
24,404,163
6.18%
23,191,435
6.15%
Total earning assets
30,108,538
$
416,709
5.60%
29,948,501
$
430,849
5.72%
28,568,541
$
404,429
5.73%
Other assets
3,620,673
3,638,890
3,611,699
TOTAL ASSETS
$
33,729,211
$
33,587,391
$
32,180,240
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
20,614,901
$
126,728
2.49%
$
20,419,740
$
135,602
2.63%
$
19,367,638
$
136,288
2.85%
Short-term borrowings
182,428
1,439
3.20%
167,660
1,443
3.42%
167,080
1,450
3.52%
Long-term borrowings
531,978
5,247
4.00%
531,594
5,551
4.14%
554,614
5,854
4.28%
Total interest-bearing liabilities
21,329,307
133,414
2.54%
21,118,994
142,596
2.68%
20,089,332
143,592
2.90%
Noninterest-bearing deposits
6,518,574
6,657,360
6,471,287
Accrued expenses and other liabilities
332,216
319,029
336,079
TOTAL LIABILITIES
28,180,097
28,095,383
26,896,698
SHAREHOLDERS’ EQUITY
5,549,114
5,492,008
5,283,542
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
33,729,211
$
33,587,391
$
32,180,240
NET INTEREST INCOME
$
283,295
$
288,253
$
260,837
INTEREST RATE SPREAD
3.06%
3.04%
2.83%
NET INTEREST MARGIN
3.80%
3.83%
3.69%
(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Nonaccruing loans are included in the daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
March
December
March
Selected Financial Ratios:
2026
2025
2025
Return on Average Assets
1.49%
1.52%
1.06%
Return on Average Shareholders’ Equity
9.08%
9.31%
6.47%
Return on Average Tangible Common Equity (non-GAAP) (1)
14.40%
14.86%
10.61%
Efficiency Ratio
48.27%
47.65%
53.03%
Price / Earnings Ratio
11.54
x
10.62
x
14.70
x
Note:
(1) Return on Average Tangible Common Equity:
(a) Net Income (GAAP)
$
124,200
$
128,828
$
84,306
(b) Number of Days
90
92
90
Average Total Shareholders' Equity (GAAP)
$
5,549,114
$
5,492,008
$
5,283,542
Less: Average Total Intangibles
(2,050,468)
(2,052,648)
(2,060,975)
(c) Average Tangible Common Equity (non-GAAP)
$
3,498,646
$
3,439,360
$
3,222,567
Return on Average Tangible Common Equity (non-GAAP) [(a) / (b)] x 365 / (c)
14.40%
14.86%
10.61%
Selected Financial Ratios:
March 31
2026
December 31
2025
March 31
2025
Loans & Leases, net of unearned income / Deposit Ratio
91.68%
91.31%
90.51%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income
1.20%
1.20%
1.30%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income
1.35%
1.35%
1.45%
Nonaccrual Loans / Loans & Leases, net of unearned income
0.37%
0.39%
0.24%
90-Day Past Due Loans/ Loans & Leases, net of unearned income
0.05%
0.02%
0.05%
Non-performing Loans/ Loans & Leases, net of unearned income
0.41%
0.41%
0.29%
Non-performing Assets/ Total Assets
0.34%
0.33%
0.22%
Primary Capital Ratio
17.11%
17.15%
17.09%
Shareholders' Equity Ratio
16.28%
16.33%
16.21%
Price / Book Ratio
1.04
x
0.98
x
0.93
x
Note:
(2) Includes allowances for loan losses and lending-related commitments.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
March
December
March
Mortgage Banking Data:
2026
2025
2025
Loans originated
$
87,053
$
87,134
$
75,903
Loans sold
89,095
80,083
91,621
March 31
December 31
March 31
Asset Quality Data:
2026
2025
2025
EOP Non-Accrual Loans
$
91,170
$
96,492
$
57,388
EOP 90-Day Past Due Loans
11,664
4,974
12,387
Total EOP Non-performing Loans
$
102,834
$
101,466
$
69,775
EOP Other Real Estate Owned
10,390
8,857
1,475
Total EOP Non-performing Assets
$
113,224
$
110,323
$
71,250
Three Months Ended
March
December
March
Allowance for Loan & Lease Losses:
2026
2025
2025
Beginning Balance
$
297,518
$
300,050
$
271,844
Initial allowance for acquired PCD loans
-
-
17,518
Gross Charge-offs
(6,830)
(11,179)
(8,677)
Recoveries
1,135
1,867
636
Net Charge-offs
(5,695)
(9,312)
(8,041)
Provision for Loan & Lease Losses(1)
7,776
6,780
29,103
Ending Balance
299,599
$
297,518
310,424
Reserve for lending-related commitments
37,047
35,075
36,567
Allowance for Credit Losses (2)
$
336,646
$
332,593
$
346,991
Notes:
(1) Three months ended March 31, 2025 includes $18.7 million in provision for Piedmont acquired non-PCD loans.
(2) Includes allowances for loan losses and lending-related commitments.
United Bankshares (UBSI - Free Report) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.30%. A quarter ago, it was expected that this holding company for United Bank would post earnings of $0.86 per share when it actually produced earnings of $0.91, delivering a surprise of +5.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
United Bankshares, which belongs to the Zacks Banks - Southeast industry, posted revenues of $317.36 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.55%. This compares to year-ago revenues of $290.39 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
United Bankshares shares have added about 13% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for United Bankshares?While United Bankshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for United Bankshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.88 on $320.84 million in revenues for the coming quarter and $3.54 on $1.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Renasant (RNST - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 28.
This holding company for Renasant Bank is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +27.3%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.
Renasant's revenues are expected to be $272.07 million, up 59.5% from the year-ago quarter.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Charleston, United Bankshares (UBSI - Free Report) is a Finance stock that has seen a price change of 13.75% so far this year. The holding company for United Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.48%. This compares to the Banks - Southeast industry's yield of 2.04% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
UBSI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.64 per share, which represents a year-over-year growth rate of 11.31%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that UBSI is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)--United Bankshares, Inc. (“United” or “the Company”) (NASDAQ: UBSI), an approximately $34 billion regional financial services company, held its Annual Meeting of Shareholders on Wednesday, May 13, 2026, at Congressional Country Club in Bethesda, Maryland.
During the meeting, United Executive Chairman of the Board Richard M. Adams addressed shareholders by highlighting several key points from the 2025 Annual Report to Shareholders.
“2025 was a great year for our company,” Adams began. “We continued our strong performance with record earnings of $465 million – increasing earnings per share from $2.75 to $3.27 – and we outperformed our peers with a Return on Average Assets of 1.4%, compared to the peer median of 1.1%. Loan and deposit growth also continued to be very strong, as we increased each by approximately $1 billion in 2025, excluding balances acquired in the Piedmont Bancorp, Inc. merger.”
United’s total return in 2025 was 6.5%, which was in line with the KBW Regional Banking Index. United’s long-term stock performance has been excellent.
“The good news is that in 2026, as of yesterday, the KBW Regional Banking Index’s total return was 7.59%. Even better news is that UBSI’s total return was 11.80%, with a ‘buy’ recommendation and price target of $50.00,” Adams said.
United also increased the dividend to shareholders from $1.48 to $1.49, representing the Company’s 52nd consecutive year of dividend increases to shareholders. This is a record that only one other major banking company in the nation has achieved. “Our consistency increasing dividends to shareholders clearly demonstrates our strong earnings, sound asset quality, and strong capital in good times and bad times over many, many years,” Adams said.
Additionally, Adams highlighted that in January 2025, United closed its 34th acquisition with Piedmont Bancorp, Inc., headquartered in the Atlanta Metro area. The acquisition extended the Company’s Southeast banking franchise, which represented 43% of United’s outstanding loans as of year-end 2025. “This acquisition was highly accretive to earnings per share and moved us into one of the best banking markets in the nation,” Adams said.
In 2025, the Company also celebrated its 35th anniversary in the nation’s capital MSA, which it first entered through the purchase of a single-office, $28 million bank in McLean, Virginia. Today, United is the “Community Bank of the Nation’s Capital.”
“We truly had a very successful year, and I would like to congratulate United CEO Rick Adams for his leadership in 2025. I would also like to thank all of our United team members for their efforts in providing us with the opportunity to continue to build such a great banking company. Every day, we make a positive difference in the lives of our team members, our customers, our shareholders, and our communities,” Adams said.
During the meeting, it was announced that the following directors were elected by the shareholders to serve on the board until the 2027 Annual Meeting: Richard M. Adams, Executive Chairman of the Board, United Bankshares, Inc.; Richard M. Adams, Jr., Chief Executive Officer, United Bankshares, Inc.; Charles L. Capito, Jr., former Managing Director, Wells Fargo Advisors Complex; Peter A. Converse, former President and CEO, Virginia Commerce Bancorp, Inc.; Sara DuMond, MD, FAAP, Founder and CEO, Pediatric Housecalls, PLLC; Michael P. Fitzgerald, former Co-Founder, Chairman, CEO and President, Bank of Georgetown; Patrice A. Harris, MD, MA, FAPA, Psychiatrist, CEO and Principal, Health Strategies Enterprises, LLC; Diana Lewis Jackson, President and Founder, Action Facilities Management; Mark R. Nesselroad, Chief Executive Officer, Glenmark Holding, LLC; Lacy I. Rice, III, Co-Founder and Managing Partner, Federated Capital Partners; Albert H. Small, Jr., Founder and President, Renaissance Centro Inc., LLC; Mary K. Weddle, CPA, former Executive Vice President, Long and Foster Companies; Gary G. White, Principal Consultant, JRW, LLC, and former Interim President, Marshall University; and P. Clinton Winter, President, Bray & Oakley Insurance Agency, Inc.
In addition to the election of directors, other proposals approved by shareholders included the ratification of the selection of Ernst & Young LLP to act as the independent registered public accounting firm for 2026 and approval, on an advisory basis, of the compensation of United’s named executive officers.
About United Bankshares, Inc.
United Bankshares, Inc. (NASDAQ: UBSI) is a financial services company with consolidated assets of approximately $34 billion as of March 31, 2026. United is the 38th largest banking company in the U.S. based on market capitalization. It is the parent company of United Bank, which comprises over 240 offices located across Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Georgia, Ohio, and Pennsylvania. For more information, visit ubsi-inc.com.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
United Bankshares (UBSI - Free Report) is headquartered in Charleston, and is in the Finance sector. The stock has seen a price change of 10.05% since the start of the year. The holding company for United Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.6%. This compares to the Banks - Southeast industry's yield of 2.09% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
UBSI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.64 per share, representing a year-over-year earnings growth rate of 11.31%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Charleston, United Bankshares (UBSI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 13.85%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 3.48%. In comparison, the Banks - Southeast industry's yield is 2.03%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UBSI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.64 per share, which represents a year-over-year growth rate of 11.31%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that UBSI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Whiskey barrels are placed on a truck at the Jack Daniel Distillery in Lynchburg, Tennessee, U.S. February 3, 2025. REUTERS/Kevin Wurm Purchase Licensing Rights, opens new tab
CompaniesApril 20 (Reuters) - The family that controls Jack Daniel's maker Brown-Forman (BFb.N), opens new tab favors a potential sale to French distiller Pernod Ricard (PERP.PA), opens new tab over a rival proposal from American spirits group Sazerac, a person familiar with the matter told Reuters on Monday.
The family views Pernod as the more prestigious acquirer, with a portfolio of stronger and more recognizable brands, according to the person, who asked not to be identified while discussing private deliberations.
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Sazerac, which houses brands such as Corazon tequila and Svedka vodka, emerged as a fresh bidder for Brown-Forman earlier this month, after Pernod said in March it was in talks about a possible merger, which would create the world's No. 2 spirits maker by sales behind London-based Diageo.
The proposed terms, which combine cash and stock, would also allow the family to retain a meaningful stake and some degree of influence in the combined company, the source said on Monday.
The Pernod bid being contemplated would be 80% stock and 20% cash, although it was subject to change, another source told Reuters on Monday.
Sazerac, controlled by the Goldring family, has offered Brown-Forman about $15 billion, or $32 per share, a source familiar with the matter said last week.
Unlike Sazerac's more traditional buyout offer, analysts have said the deal with Pernod could involve a share swap, which would allow the Brown family to preserve some control over the iconic bourbon maker it has run since 1870.
Shares of Brown-Forman, which has a market capitalization of $13.47 billion, were down about 1% at $28.94 on Monday, while shares in Pernod, valued at about 17 billion euros ($20.01 billion), were flat.
Pernod, Brown-Forman and Sazerac have all declined to comment. Bloomberg News first reported on Brown-Forman favoring the Pernod deal earlier in the day.
($1 = 0.8494 euros)
Reporting by Echo Wang and Abigail Summerville in New York; Additional reporting by Sanskriti Shekhar in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Echo Wang is a correspondent at Reuters covering U.S. equity capital markets, and the intersection of Chinese business in the U.S, breaking news from U.S. crackdown on TikTok and Grindr, to restrictions Chinese companies face in listing in New York. She was the Reuters' Reporter of the Year in 2020.
Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.
Brown-Forman Focused on Creating Value for All Stakeholders by Advancing Ongoing Strategic and Operational Plans
LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) today announced that the company and Pernod Ricard have terminated discussions regarding a potential business combination, as the companies were unable to reach mutually agreeable terms. Brown-Forman and Pernod Ricard previously confirmed discussions on March 26 and noted there could be no assurance that any such agreement would be reached. Brown-Forman issued the following statement:
“We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency.”
About Brown-Forman
Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
Important Information on Forward-Looking Statements
This press release contains statements that are “forward-looking statements”, as defined under U.S. federal securities laws, that are subject to risks and uncertainties. Such statements involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond Brown-Forman’s control and could cause Brown-Forman’s future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.
Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this press release are based upon information available to Brown-Forman on the date of this press release. Brown-Forman undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.
Brown-Forman’s actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, any risks and uncertainties set forth in the "Risk Factors" section or other sections in Brown-Forman’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other risks and uncertainties set forth from time to time in the reports Brown-Forman files with the U.S. Securities and Exchange Commission.
On 26 March 2026, Pernod Ricard and Brown-Forman confirmed that they were in discussions regarding a potential business combination.
Pernod Ricard today announces that these discussions have ended and did not result in an agreement as the companies were unable to reach mutually acceptable terms.
Pernod Ricard remains fully focused and confident in its strategy and operating model, supported by strong and committed teams across the Group to deliver sustainable long-term value for all stakeholders.
About Pernod Ricard
Pernod Ricard is a worldwide leader in the spirits and champagne industry, blending traditional craftsmanship, state-of-the-art brand development, and global distribution technologies. Our prestigious portfolio of premium to luxury brands includes Absolut vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes. Our mission is to ensure the long-term growth of our brands with full respect for people and the environment, while empowering our employees around the world to be ambassadors of our purposeful, inclusive and responsible culture of authentic conviviality. Pernod Ricard’s consolidated sales amounted to € 10,959 million in fiscal year FY25.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 index.
A Jack Daniel's whiskey logo can be seen on a barrel at the company's distillery in Lynchburg, Tennessee, U.S. February 3, 2025. REUTERS/Kevin Wurm/File Photo Purchase Licensing Rights, opens new tab
April 29 (Reuters) - Shares of Brown-Forman (BFb.N), opens new tab dropped 10% in early trading on Wednesday after the Jack Daniel's whiskey maker and France's Pernod Ricard (PERP.PA), opens new tab scrapped their merger talks, turning investor focus back to a tougher demand environment.
The discussions, first disclosed in March, ended by mutual agreement after the companies failed to reach mutually acceptable terms, they said on Tuesday.
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A tie-up would have created a strong challenger to global spirits leader Diageo (DGE.L), opens new tab and given the combined group greater leverage in the crucial U.S. market.
Pernod said in an internal memo seen by Reuters that the potential for the merger was real, but the necessary conditions to continue the project were not met.
"We felt that momentum toward a deal was stronger vs. historical speculation given the challenging operating environment and strategic rationale of combining with (Pernod)..." J.P.Morgan analysts said.
The brokerage downgraded the stock to 'underperform' from 'neutral' and cut price target to $23 from $27.
Brown‑Forman, whose shares were trading at $24.95, said it would focus on its strategic and operational priorities, including expanding its geographic footprint.
Fireball maker Sazerac, which has offered about $15 billion for Brown‑Forman, according to a Reuters report, remains a potential bidder.
But the collapse of the talks with Pernod has reduced the chances of a bidding war for Brown‑Forman, leaving uncertainty over whether discussions with Sazerac will result in a deal, said William Cain, head of M&A analytics at Mergermarket.
"With less strategic fit, a potentially more burdensome regulatory process and likely less control than a Pernod Ricard deal, we view a takeover by Sazerac as lower probability," JPMorgan analyst Drew Levine said.
Brown-Forman's stock has lost about 19% of its value in the past 12 months amid slowing spirits demand and cost pressures, though shares surged about 18% since the news of deal talks emerged.
Reporting by Savyata Mishra in Bengaluru and Tassilo Hummel in Italy; Editing by Arun Koyyur
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Savyata Mishra is a sector specialist covering U.S. consumer and retail companies, tracking big‑box chains, fast‑food giants, restaurants, beauty brands and home‑furnishing retailers. She reports on shifts in consumer spending, inflation, tariffs and global trade tensions, and how they shape corporate strategy. She previously worked on Reuters’ Asia‑Pacific snapping and reporting team, covering the Asian forex market, China’s real‑estate crisis, Australia’s casino operators and its mining sector. Her work spans breaking news, earnings‑driven coverage and trend‑focused features. She holds degrees in journalism and English literature.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) today announced the strategic realignment of its U.S. control states distribution network. Following a comprehensive review of its distributor agreements across 18 state-managed markets—where government agencies oversee the wholesale or retail distribution of distilled spirits—the company has selected four distributor organizations to represent its portfolio in 11 markets. The remaining seven control states will continue to be served by their existing distributor.
The following organizations will represent the Brown-Forman portfolio in their respective markets, effective June 1:
Johnson Brothers: Idaho, Montana, North Carolina, Oregon, Utah, and Wyoming Southern Glazer’s Wine & Spirits: Maine, New Hampshire, and Vermont Superior Beverage Group: Ohio Great Lakes Wine & Spirits: Michigan Brown‑Forman would like to recognize and thank outgoing distributor Republic National Distributing Company (RNDC) for their years of partnership and collaboration in these markets.
“In 2025, Brown‑Forman embarked on the most significant transformation of its U.S. distribution network in more than six decades. With the control states phase now complete, we are aligned with distributors who bring the capabilities, scale, and operational excellence required to drive our next generation of growth,” said Michael Masick, Executive Vice President and President, Americas, Brown‑Forman.”
Robinson Brown IV, Senior Vice President and Managing Director, USA & Canada, Brown‑Forman, added: “Control states require a unique combination of regulatory expertise and strong commercial execution. With these new partners, we’re better equipped to expand our footprint and ensure our brands are in the right place at the right time to win with the consumer."
About Brown-Forman:
Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements reflect management’s expectations or projections regarding future events and speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections.
For further information on factors that could cause our actual results to differ materially from our historical experience or from our current expectations or projections, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
The deal between Brown-Forman and Pernod Ricard is off the table, but that is not the end of it. Another bidder has recently stepped in, and the chances of some form of a deal remain. The issue around a target price as Brown-Forman trades at record-low levels is likely to be the cause of Pernod Ricard walking away.
Whiskey barrels are placed on a truck at the Jack Daniel Distillery in Lynchburg, Tennessee, U.S. February 3, 2025. REUTERS/Kevin Wurm/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesSazerac had offered $32 cash per share for Jack Daniel's maker Brown-Forman - sourceDeal rejected weeks after talks between Brown-Forman and Pernod Ricard fell apartSpirits industry grappling with a prolonged slump amid declining alcohol consumptionMay 12 (Reuters) - Brown-Forman (BFb.N), opens new tab has rejected a $32-per-share cash takeover offer from U.S. spirits maker Sazerac, according to a source familiar with the matter, weeks after talks between the Jack Daniel's maker and France's Pernod Ricard (PERP.PA), opens new tab fell apart.
Brown-Forman shares closed down 1% at $26.56 on Tuesday, well below Sazerac's offer price.
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Privately owned Sazerac emerged as a suitor for Brown-Forman last month, after Brown-Forman and Pernod disclosed talks over a possible merger. Those talks ended in late April after the companies failed to reach mutually acceptable terms.
Sazerac, which owns more than 500 brands, including Buffalo Trace whiskey and Fireball, and is controlled by the Goldring family, had submitted a $15 billion offer for Brown-Forman in April.
The offer was financially backed by Wells Fargo and Apollo Global Management and would have given Brown-Forman’s Class A shareholders the option to take cash or roll their shares into the new company, the source added.
Sazerac and Brown-Forman declined to comment. The Wall Street Journal first reported the development.
The rejection of the Sazerac offer comes at a time when the spirits industry is grappling with a prolonged slump, as declining alcohol consumption has squeezed volumes across the sector.
Multiples for consumer goods companies have fallen sharply, and dealmakers increasingly see scale as the answer, bankers and analysts have said.
The Brown family, which controls Brown-Forman, favored a potential sale to Pernod over Sazerac’s rival proposal, a source familiar with the matter told Reuters last month. The family viewed Pernod as the more prestigious acquirer, with a portfolio of stronger and more recognizable brands, the source added.
The structure of the two potential deals also differed sharply. Pernod’s proposed terms would have been a mostly stock deal akin to a merger of equals, allowing the Brown family to retain a meaningful stake and some influence in the combined company, a source told Reuters last month.
Sazerac’s approach, by contrast, would have required more cash, higher leverage and effectively forced the Brown family to relinquish control.
Sazerac generates more than $6 billion in annual net sales, topping Brown-Forman's around $4 billion of annual net sales.
A tie-up between the Kentucky neighbors would have created a dominant U.S. player controlling roughly 30% of the American whiskey market, some analysts have said. A combination of the two would also have meant greater clout in negotiations with major U.S. distributors.
Reporting by Abigail Summerville in New York and Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber, Echo Wang and Jamie Freed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) announced today that its Board of Directors declared a regular quarterly cash dividend of $0.2310 per share on its Class A and Class B Common Stock. The dividend is payable on July 1, 2026, to stockholders of record on June 10, 2026.
Brown-Forman, a member of the prestigious S&P 500 Dividend Aristocrats index, has paid regular quarterly cash dividends for 82 years and has increased the cash dividend for 42 consecutive years.
Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its fourth quarter and fiscal year ended April 30, 2026. Fourth quarter reported net sales increased 2%1 to $912 million (+2% on an organic basis2) compared to the same prior-year period. In the quarter, reported operating income decreased 53% to $96 million (flat on an organic basis) and diluted earnings per share decreased 62% to $0.12.
For the full year, the company’s reported net sales decreased 1% to $3.9 billion (flat on an organic basis) compared to the same prior-year period. Reported operating income decreased 10% to $1.0 billion (-2% on an organic basis) and diluted earnings per share decreased 17% to $1.53.
“We finished the fiscal year ahead of our expectations, driven by strong execution in our innovation portfolio, the early benefits of our U.S. route-to-market transformation, and strategic cost-restructuring initiatives,” said President and Chief Executive Officer Lawson Whiting. “Our ability to grow cash flows from operations and free cash flow by more than $400 million in a declining market speaks to the strength of our business and our commitment to a robust capital allocation strategy. While we expect continued market volatility and a challenging cost cycle in the year ahead, our performance this year proves we have the right people, brands, and strategy to navigate these challenges effectively.”
Fiscal 2026 Highlights
The net sales decline was led by the end of the Korbel Champagne Cellars relationship (Korbel relationship) and the absence of the Sonoma-Cutrer prior-year transition services agreement (TSA), partially offset by the launch of Jack Daniel’s Tennessee Blackberry. From a geographic perspective, net sales growth in Emerging3 markets and the Travel Retail3 channel was partially offset by a decline in the United States, and Developed International3 markets were flat. Gross margin expanded 160 basis points driven by the positive effect of acquisitions and divestitures. Cash flows from operations grew by $402 million to $1.0 billion and free cash flow2 increased by $462 million to $893 million. The company returned $827 million to stockholders by distributing $427 million in regular quarterly dividends and $400 million through its share repurchase program. Fiscal 2026 Brand Results
Net sales for Whiskey3 products increased 3% (+1% organic) driven by the launch of Jack Daniel’s Tennessee Blackberry, the positive effect of foreign exchange, and the growth of Woodford Reserve in the United States, partially offset by declines of Jack Daniel’s Tennessee Whiskey. Net sales for the Tequila3 portfolio decreased 4% (-6% organic). Herradura’s net sales declined 9% (-10% organic) led by lower volumes in the United States. el Jimador’s net sales decreased 2% (-2% organic) driven by declines in the United States and Mexico, partially offset by higher volumes in Colombia. Net sales for the Ready-to-Drink3 (RTD) portfolio increased 11% (+7% organic). Net sales of New Mix increased 41% (+33% organic) fueled by market share gains in Mexico within an accelerating category and the product’s launch in the United States. Jack Daniel’s RTD/RTP portfolio decreased 3% (-5% organic) driven by declines in the United States and the absence of American-made beverage alcohol from retail shelves across most provinces in Canada. Rest of Portfolio's3 net sales declined 31% (+18% organic) driven by the unfavorable impact of acquisitions and divestitures, partially offset by the distribution of new agency brands in Japan and Mexico, as well as strong double-digit growth of Gin Mare and Diplomático. Net sales for non-branded and bulk decreased 68% (-68% organic) driven by lower used barrel sales. Fiscal 2026 Market Results
Net sales in the United States declined 7% (flat organic) driven by the end of the Korbel relationship and the absence of the Sonoma-Cutrer prior-year TSA, as well as lower volumes of Jack Daniel’s Tennessee Whiskey and unfavorable portfolio mix, partially offset by innovation, led by Jack Daniel’s Tennessee Blackberry and growth of Woodford Reserve. Higher net pricing across the portfolio as a result of changes to our distributor relationship terms and favorable timing of distributor ordering patterns positively impacted net sales. In a challenging economic environment, net sales in the Developed International markets were flat (-3% organic). The positive effect of foreign exchange and the benefit from the transition to owned distribution in Italy was offset by the absence of American-made beverage alcohol from retail shelves in most of the Canadian provinces and declines in Germany and the United Kingdom. Net sales in Emerging markets increased 14% (+12% organic) driven by growth across the Jack Daniel’s family of brands led by Türkiye, the United Arab Emirates, and Brazil, strong double-digit growth of New Mix in Mexico, an estimated net increase in distributor inventories, and the positive effect of foreign exchange. The Travel Retail channel’s net sales increased 6% (+5% organic) largely due to increased passenger traffic leading to higher volumes of Jack Daniel’s Tennessee Whiskey as well as the positive effect of foreign exchange. Fiscal 2026 Other P&L Items
Gross profit increased 2% (flat organic). Gross margin expanded 160 basis points to 60.5% driven by the positive effect of acquisitions and divestitures, the positive effect of foreign exchange, and lower costs influenced by the timing of cost fluctuations. Advertising expense decreased 4% (-5% organic) driven by lower spend across the Jack Daniel’s family of brands, led by super-premium Jack Daniel’s expressions, and the end of the Korbel relationship, partially offset by the negative effect of foreign exchange. Selling, general, and administrative (SG&A) expenses increased 9% (+7% organic) driven by costs associated with the contemplated business transaction discussions, higher compensation-and-benefit-related expenses, and the negative effect of foreign exchange. The company incurred $19 million in charges related to the strategic restructuring initiative announced in January 2025. Operating income decreased 10% (-2% organic) resulting in an operating margin decrease of 240 basis points to 25.5%. The operating margin decrease was driven by higher non-cash impairment charges and higher SG&A expenses, partially offset by lower restructuring initiative costs compared to the same prior-year period. Diluted earnings per share decreased $0.31 driven by lower operating income and the absence of the prior-year gain on sale of our investment in The Duckhorn Portfolio, Inc. Fiscal 2026 Financial Stewardship
During fiscal 2026, the company paid $427 million to stockholders through its regular quarterly dividend and returned $400 million to stockholders through its share repurchase program, which was completed in December 2025. Brown-Forman, a member of the S&P 500 Dividend Aristocrats Index, has paid regular quarterly cash dividends for 82 consecutive years and has increased the regular dividend for 42 consecutive years.
In addition, cash flows from operations grew $402 million to $1.0 billion, primarily reflecting disciplined working capital management, and free cash flow increased $462 million to $893 million, driven by strong operating cash flow generation and lower capital expenditure needs.
Fiscal 2027 Outlook
We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed markets. We remain committed to building our business for the long term while focusing intensely on the variables within our control. We believe we will benefit in fiscal 2027 from our previously announced restructuring initiative and U.S. distributor changes, and continued new product innovation, such as the expansion of Jack Daniel's Tennessee Blackberry. Considering these factors, we expect the following in fiscal 2027:
Organic net sales to be approximately flat. Organic operating income decline in the 3% to 5% range. Our effective tax rate to be in the range of approximately 20% to 22%. Capital expenditures planned to be in the range of $60 to $70 million. Conference Call Details
Brown-Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via Brown-Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.
Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
Important Information on Forward-Looking Statements:
This press release contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:
Our substantial dependence upon the continued growth of the Jack Daniel’s family of brands Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers Risks from changes to the trade policies, tariffs, and import and export regulations of the United States or foreign governments and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and/or distributors Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of marijuana; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs Production facility, aging warehouse, or supply chain disruption Imprecision in supply/demand forecasting Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects or risks relating to the increased risk of social media Product recalls or other product liability claims, product tampering, contamination, or quality issues Failure to attract or retain key executive or employee talent Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar A downgrade or potential downgrade of our credit ratings Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur Decline in the social acceptability of beverage alcohol in significant markets Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products Counterfeiting and inadequate protection of our intellectual property rights Significant legal disputes and proceedings, or government investigations Cyberbreach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure For further information on these and other risks, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
Brown-Forman Corporation
Unaudited Consolidated Statements of Operations
For the Three Months Ended April 30, 2025 and 2026
(Dollars in millions, except per share amounts)
2025
2026
Change
Net sales
$
894
$
912
2
%
Cost of sales
381
341
(10
%)
Gross profit
513
571
11
%
Advertising expenses
107
96
(10
%)
Selling, general, and administrative expenses
193
259
34
%
Restructuring and other charges
27
—
(97
)%
Other intangible assets impairment
47
132
Other expense (income), net
(66
)
(12
)
Operating income
205
96
(53
)%
Non-operating postretirement expense
—
2
Interest expense, net
22
23
Equity method investment income and gain on sale
—
—
Income before income taxes
183
71
(61
)%
Income taxes
37
17
Net income
$
146
$
54
(63
)%
Earnings per share:
Basic
$
0.31
$
0.12
(62
)%
Diluted
$
0.31
$
0.12
(62
)%
Gross margin
57.3
%
62.6
%
Operating margin
22.9
%
10.5
%
Effective tax rate
20.2
%
25.1
%
Cash dividends paid per common share
$
0.2265
$
0.2310
Shares (in thousands) used in the
calculation of earnings per share
Basic
472,667
458,702
Diluted
472,884
459,310
Brown-Forman Corporation
Unaudited Consolidated Statements of Operations
For the Twelve Months Ended April 30, 2025 and 2026
(Dollars in millions, except per share amounts)
2025
2026
Change
Net sales
$
3,975
$
3,928
(1
%)
Cost of sales
1,632
1,550
(5
%)
Gross profit
2,343
2,378
2
%
Advertising expenses
484
462
(4
%)
Selling, general, and administrative expenses
744
807
9
%
Restructuring and other charges
60
19
(68
%)
Other intangible assets impairment
47
132
Other expense (income), net
(99
)
(43
)
Operating income
1,107
1,001
(10
)%
Non-operating postretirement expense
4
27
Interest expense, net
105
89
Equity method investment income and gain on sale
(83
)
—
Income before income taxes
1,081
885
(18
)%
Income taxes
212
170
Net income
$
869
$
715
(18
)%
Earnings per share:
Basic
$
1.84
$
1.53
(17
)%
Diluted
$
1.84
$
1.53
(17
)%
Gross margin
58.9
%
60.5
%
Operating margin
27.9
%
25.5
%
Effective tax rate
19.6
%
19.3
%
Cash dividends paid per common share
$
0.8886
$
0.9150
Shares (in thousands) used in the
calculation of earnings per share
Basic
472,655
466,335
Diluted
472,950
466,733
Brown-Forman Corporation
Unaudited Condensed Consolidated Balance Sheets
(Dollars in millions)
April 30,
2025
April 30,
2026
Assets:
Cash and cash equivalents
$
444
$
308
Accounts receivable, net
830
832
Inventories
2,511
2,543
Assets held for sale
121
—
Other current assets
289
308
Total current assets
4,195
3,991
Property, plant, and equipment, net
1,095
1,116
Goodwill
1,505
1,522
Other intangible assets
981
943
Other assets
310
322
Total assets
$
8,086
$
7,894
Liabilities:
Accounts payable and accrued expenses
$
741
$
795
Accrued income taxes
27
18
Short-term borrowings
312
68
Current portion of long-term debt
—
351
Total current liabilities
1,080
1,232
Long-term debt
2,421
2,083
Deferred income taxes
241
207
Accrued postretirement benefits
164
172
Other liabilities
187
180
Total liabilities
4,093
3,874
Stockholders’ equity
3,993
4,020
Total liabilities and stockholders’ equity
$
8,086
$
7,894
Brown-Forman Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
For the Twelve Months Ended April 30, 2025 and 2026
(Dollars in millions)
2025
2026
Cash provided by operating activities
$
598
$
1,000
Cash flows from investing activities:
Proceeds from sale of cooperage assets
51
33
Proceeds from sale of equity method investment
350
—
Additions to property, plant, and equipment
(167
)
(107
)
Other
15
3
Cash provided by (used for) investing activities
249
(71
)
Cash flows from financing activities:
Net change in short-term borrowings
(117
)
(244
)
Repayment of long-term debt
(300
)
—
Acquisition of treasury stock
—
(400
)
Dividends paid
(420
)
(427
)
Other
(6
)
(3
)
Cash provided by (used for) financing activities
(843
)
(1,074
)
Effect of exchange rate changes
3
9
Net increase (decrease) in cash, cash equivalents, and restricted cash
7
(136
)
Cash, cash equivalents, and restricted cash at beginning of period
456
463
Cash, cash equivalents, and restricted cash at end of period
463
327
Less: Restricted cash at end of period
(19
)
(19
)
Cash and cash equivalents at end of period
$
444
$
308
Schedule A
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Percentage change versus the prior-year period ended
April 30, 2026
3 Months
12 Months
Reported change in net sales
2
%
(1
%)
Acquisitions and divestitures
2
%
3
%
Foreign exchange
(2
%)
(2
%)
Organic* change in net sales
2
%
—
%
Reported change in gross profit
11
%
2
%
Acquisitions and divestitures
1
%
1
%
Other items*
(1
%)
—
%
Foreign exchange
(2
%)
(2
%)
Organic change in gross profit
10
%
—
%
Reported change in advertising expenses
(10
%)
(4
%)
Acquisitions and divestitures
1
%
2
%
Foreign exchange
(3
%)
(2
%)
Organic change in advertising expenses
(12
%)
(5
%)
Reported change in SG&A
34
%
9
%
Acquisitions and divestitures
—
%
—
%
Foreign exchange
(2
%)
(2
%)
Organic change in SG&A
32
%
7
%
Reported change in operating income
(53
%)
(10
%)
Acquisitions and divestitures
7
%
5
%
Impairment charges
54
%
8
%
Other items*
(12
%)
(4
%)
Foreign exchange
5
%
(1
%)
Organic change in operating income
—
%
(2
%)
Schedule B
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Twelve Months Ended April 30, 2026
Supplemental Information^
Volumes (9-Liter Cases)
Net Sales % Change vs. Prior-Year Period
Product Category / Brand Family / Brand^
Depletions
(Millions)*
% Change vs. Prior-Year Period
Shipments
(Millions)*
% Change vs. Prior-Year Period
Reported
Acquisitions and Divestitures
Foreign Exchange
Organic^
Whiskey
20.9
—
%
21.0
—
%
3
%
—
%
(1
%)
1
%
JDTW
13.4
(3
%)
13.3
(3
%)
(2
%)
—
%
(1
%)
(4
%)
JDTH
1.9
(4
%)
1.9
(4
%)
(3
%)
—
%
(2
%)
(5
%)
Gentleman Jack
0.8
(2
%)
0.8
(1
%)
(1
%)
—
%
(1
%)
(2
%)
JDTA
1.1
14
%
1.1
12
%
12
%
—
%
(2
%)
10
%
JDTF
0.6
(7
%)
0.6
(8
%)
(7
%)
—
%
(1
%)
(8
%)
Woodford Reserve
1.8
—
%
1.9
1
%
4
%
—
%
—
%
4
%
Old Forester
0.5
(3
%)
0.5
—
%
5
%
—
%
—
%
5
%
Rest of Whiskey
0.9
91
%
1.0
115
%
61
%
—
%
(1
%)
60
%
Ready-to-Drink
23.6
9
%
23.8
10
%
11
%
—
%
(4
%)
7
%
JD RTD/RTP
9.9
(4
%)
9.9
(4
%)
(3
%)
—
%
(3
%)
(5
%)
New Mix
13.7
21
%
13.8
22
%
41
%
—
%
(8
%)
33
%
Tequila
1.9
(7
%)
1.9
(3
%)
(4
%)
—
%
(1
%)
(6
%)
el Jimador
1.3
(6
%)
1.3
(1
%)
(2
%)
—
%
(1
%)
(2
%)
Herradura
0.5
(11
%)
0.5
(11
%)
(9
%)
—
%
(1
%)
(10
%)
Rest of Portfolio
1.1
6
%
1.1
15
%
(31
%)
53
%
(4
%)
18
%
Non-branded and bulk
NA
NA
NA
NA
(68
%)
—
%
—
%
(68
%)
Total Portfolio
47.5
4
%
47.8
5
%
(1
%)
3
%
(2
%)
—
%
Other Brands and Aggregations
Jack Daniel's Family
28.3
(2
%)
28.4
(1
%)
1
%
—
%
(2
%)
—
%
American Whiskey
19.5
(1
%)
19.6
—
%
2
%
—
%
(1
%)
—
%
Diplomático
0.3
3
%
0.3
12
%
17
%
—
%
(5
%)
11
%
Gin Mare
0.2
19
%
0.2
18
%
36
%
—
%
(6
%)
30
%
Schedule C
Brown-Forman Corporation
Supplemental Statement of Operations Information (Unaudited)
Twelve Months Ended April 30, 2026
Net Sales % Change vs. Prior-Year Period
Geographic Area^
Reported
Acquisitions and Divestitures
Foreign Exchange
Organic^
United States
(7
%)
7
%
—
%
—
%
Developed International
—
%
—
%
(3
%)
(3
%)
Germany
(2
%)
—
%
(5
%)
(7
%)
Australia
1
%
—
%
—
%
—
%
United Kingdom
(6
%)
—
%
(3
%)
(9
%)
France
(2
%)
—
%
(5
%)
(7
%)
Spain
—
%
1
%
(5
%)
(4
%)
Rest of Developed International
7
%
—
%
(3
%)
4
%
Emerging
14
%
1
%
(3
%)
12
%
Mexico
20
%
—
%
(7
%)
13
%
Poland
7
%
6
%
(11
%)
2
%
Brazil
13
%
—
%
(2
%)
12
%
Türkiye
(4
%)
—
%
22
%
19
%
Rest of Emerging
16
%
—
%
(2
%)
15
%
Travel Retail
6
%
—
%
(2
%)
5
%
Non-branded and bulk
(68
%)
—
%
—
%
(68
%)
Total
(1
%)
3
%
(2
%)
—
%
Schedule D
Brown-Forman Corporation
Supplemental Information (Unaudited) —
Estimated Net Change in Distributor Inventories
Twelve Months Ended April 30, 2026
Estimated Net Change in Distributor
Inventories^ vs. Prior-Year Period
Geographic Area^ - Net Sales
United States
1%
Developed International
1%
Emerging
3%
Travel Retail
—%
Non-branded and bulk
—%
Product category / brand family / brand^
Whiskey
1%
JDTW
—%
JDTH
—%
Gentleman Jack
1%
JDTA
(1%)
JDTF
(1%)
Woodford Reserve
3%
Old Forester
6%
Rest of Whiskey
12%
Ready-to-Drink
1%
JD RTD/RTP
—%
New Mix
3%
Tequila
2%
el Jimador
5%
Herradura
—%
Rest of Portfolio
7%
Non-branded and bulk
—%
Statement of Operations Line Items
Net Sales
2%
Cost of Sales
1%
Gross Profit
2%
Operating Income
3%
Schedule E
Brown-Forman Corporation
Supplemental Free Cash Flow Information (Unaudited)
For the Twelve Months Ended April 30, 2025 and 2026
(Dollars in millions)
2025
2026
Cash provided by operating activities
$
598
$
1,000
Additions to property, plant, and equipment
(167
)
(107
)
Free cash flow*
431
893
Note 1 - All related commentary and percentage growth rates are on a reported basis and compared to the same prior-year periods, unless otherwise noted.
Note 2 - Non-GAAP Financial Measures
Use of Non-GAAP Financial Information. We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). Additionally, we use some financial measures in this press release that are not measures of financial performance under GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under GAAP. Other companies may define or calculate these non-GAAP measures differently. Reconciliations of these non-GAAP measures to the most closely comparable GAAP measures are presented on Schedules A, B, C, and E of this press release.
“Organic change” in measures of statements of operations. We present changes in certain measures, or line items, of the statements of operations that are adjusted to an “organic” basis. We use “organic change” for the following measures: (a) organic net sales; (b) organic cost of sales; (c) organic gross profit; (d) organic advertising expenses; (e) organic selling, general, and administrative (SG&A) expenses; (f) organic other expense (income), net; (g) organic operating expenses*; and (h) organic operating income. To calculate these measures, we adjust, as applicable, for (1) acquisitions and divestitures, (2) impairment charges, (3) other items, and (4) foreign exchange. We explain these adjustments below.
“Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on the sale of divested brands and certain assets, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, transition, and integration costs), (c) the effects of operating activity related to acquired and divested brands, including certain divested agency brands, for periods not comparable year over year (non-comparable periods), and (d) fair value changes to contingent consideration liabilities. Excluding non-comparable periods allows us to include the effects of acquired and divested brands only to the extent that results are comparable year over year. For the periods presented, we had the following acquisitions and divestitures adjustments During fiscal 2023, we acquired the Gin Mare brand (Gin Mare). The purchase price consisted of cash paid at the acquisition date plus contingent consideration that is payable in cash no later than July 2027. We recognized $43 million and $15 million in favorable fair value adjustments to Gin Mare’s contingent consideration liability during fiscal 2025 and fiscal 2026, respectively. This adjustment removes the fair value impact from our other expense (income), net and operating income for the periods presented.
During fiscal 2024, we sold our Finlandia vodka and Sonoma-Cutrer wine businesses and entered into transition services agreements (TSAs) related to distribution services in certain markets for these businesses. This adjustment removes the net sales, cost of sales, operating expenses, and operating income recognized pursuant to the TSAs for the non-comparable period, which is activity from fiscal 2025.
During fiscal 2025, we recognized a gain of $12 million on the sale of the Alabama cooperage. This adjustment removes the gain from our other expense (income), net and operating income.
During fiscal 2026, we ended our sales, marketing, and distribution relationship with Korbel Champagne Cellars (Korbel relationship), effective June 30, 2025. This adjustment removes the net sales, cost of sales, operating expenses, and operating income for the non-comparable period, which is July through April of fiscal 2025 and fiscal 2026.
“Impairment Charges.” This adjustment removes the impact of impairment charges from our results of operations. During fiscal 2025, we recognized a non-cash impairment charge of $47 million for the Gin Mare brand name. During fiscal 2026, we recognized non-cash impairment charges of $45 million and $87 million for the Gin Mare and Diplomático brand names, respectively.
“Other Items.” Other Items include the additional items outlined below. “Franchise tax refund.” During fiscal 2025, we recognized a $13 million franchise tax refund due to a change in franchise tax calculation methodology for the state of Tennessee. This modification lowered our annual franchise tax obligation and was retroactively applied to franchise taxes paid during fiscal 2020 through fiscal 2023. This adjustment removes the franchise tax refund from our other expense (income), net and operating income.
“Restructuring initiative.” During fiscal 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth. This included reducing our workforce by approximately 12% and closing the Louisville-based Brown-Forman Cooperage. We also offered a special, one-time early retirement benefit to qualifying U.S. employees. In fiscal 2025, we incurred $63 million* in charges related to the restructuring initiative. During fiscal 2026, we incurred $19 million in restructuring and other charges associated with this initiative and completed the sale of Brown-Forman Cooperage facility and related assets. This adjustment removes the restructuring initiative impact from our cost of sales, operating expenses and operating income for the periods presented.
“Substitution drawback claims.” During fiscal 2026, we recognized a net benefit of $18 million related to the collection of substitution drawback claims filed with the U.S. Government between fiscal 2016 and 2019. As of the first quarter of fiscal 2026, all claims had been collected. Comparatively, we recognized an immaterial net benefit in fiscal 2025 related to the collection of substitution drawback claims. This adjustment removes the benefit from our other expense (income), net and operating income for the periods presented.
“Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchange allows us to understand our business on a constant-dollar basis, as fluctuations in exchange rates can distort the organic trend both positively and negatively. (In this press release, “dollar” means the U.S. dollar unless stated otherwise.) To eliminate the effect of foreign exchange fluctuations when comparing across periods, we translate current-year results at prior-year rates and remove transactional and hedging foreign exchange gains and losses from current- and prior-year periods. We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components of management incentive compensation; (d) plan and forecast; and (e) communicate our financial performance to the Board of Directors, stockholders, and the investment community. We have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We believe these non-GAAP measures are useful to readers and investors because they enhance the understanding of our historical financial performance and comparability between periods. When we provide guidance for organic change in certain measures of the statements of operations, we do not provide guidance for the corresponding GAAP change, as the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, such as foreign exchange, which could have a significant impact to our GAAP income statement measures.
In addition to the non-GAAP financial measures presented, we believe that our results are affected by changes in distributor inventories, particularly in our largest market, the United States, where the spirits industry is subject to regulations that essentially mandate a so-called “three-tier system,” with a value chain that includes suppliers, distributors, and retailers. Accordingly, we also provide information concerning estimated fluctuations in distributor inventories. We believe such information is useful in understanding our performance and trends as it provides relevant information regarding customers’ demand for our products. See Schedule D of this press release.
“Free cash flow.” Free cash flow is a liquidity measure that represents cash provided by operating activities less additions to property, plant, and equipment. In Schedule E, we provide this calculation for the relevant periods. We believe this non-GAAP measure provides useful information to investors about the amount of cash generated from our business operations. We use free cash flow primarily to meet current obligations, make appropriate capital and strategic investments, and return cash to our stockholders through regular dividends and, from time to time, through share repurchases and special dividends. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations, such as debt service, that are not deducted from this measure. Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities reported under GAAP.
Note 3 - Definitions
From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol category. Below, we define the geographic and brand aggregations used in this release.
Geographic Aggregations.
In Schedule C and Schedule D, we provide supplemental information for our top markets ranked by percentage of reported net sales. In addition to markets listed by country name, we include the following aggregations:
“Developed International” markets are “advanced economies” as defined by the IMF, excluding the United States. Our top developed international markets were Germany, Australia, the United Kingdom, France, and Spain. This aggregation represents our net sales of branded products to these markets. “Spain” includes Spain and certain other surrounding territories. “Emerging” markets are “emerging and developing economies” as defined by the IMF. Our top emerging markets were Mexico, Poland, Brazil, and Türkiye. This aggregation represents our net sales of branded products to these markets. “Brazil” includes Brazil, Paraguay, Uruguay, and certain other surrounding territories. “Travel Retail” represents our net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location. “Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location. Brand Aggregations.
In Schedule B and Schedule D, we provide supplemental information for our top brands ranked by percentage of reported net sales. In addition to brands listed by name, we include the aggregations outlined below.
Beginning in fiscal 2025, we aggregated the “Wine” and “Vodka” product categories with “Rest of Portfolio,” due to the divestitures of Sonoma-Cutrer and Finlandia. Please refer to the new definition of “Rest of Portfolio” for more information.
“Whiskey” includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), the Woodford Reserve family of brands (Woodford Reserve), the Old Forester family of brands (Old Forester), The Glendronach, Benriach, Glenglassaugh, and Slane Irish Whiskey. “American whiskey” includes the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), Woodford Reserve, and Old Forester. “Super-premium American whiskey” includes Woodford Reserve, Gentleman Jack, and other super-premium Jack Daniel’s expressions. “Ready-to-Drink” includes all ready-to-drink (RTD) and ready-to-pour (RTP) products. The brands included in this category are Jack Daniel’s RTD and RTP products (JD RTD/RTP), New Mix, and other RTD/RTP products. “Jack Daniel’s RTD/RTP” products include all RTD line extensions of Jack Daniel’s, such as Jack Daniel’s & Coca-Cola RTD, Jack Daniel’s & Cola, Jack Daniel’s Double Jack, Jack Daniel’s Country Cocktails (JDCC)*, and other malt- and spirit-based Jack Daniel’s RTDs, along with Jack Daniel’s Winter Jack RTP. “Jack Daniel’s & Coca-Cola RTD” includes all Jack Daniel’s & Coca-Cola RTD products and Jack Daniel’s bulk whiskey shipments for the production of these products. “Tequila” includes el Jimador, the Herradura family of brands (Herradura), and other tequilas. “Rest of Portfolio” includes Diplomático, Gin Mare, Chambord, other agency brands (brands we do not own, but sell in certain markets), Korbel California Champagnes and Korbel Brandy†, Fords Gin, Finlandia Vodka (which was divested on November 1, 2023), and Sonoma-Cutrer (which was divested on April 30, 2024). “Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey. “Jack Daniel’s family of brands” includes Jack Daniel’s Tennessee Whiskey (JDTW), JD RTD/RTP, Jack Daniel’s Tennessee Honey (JDTH), Gentleman Jack, Jack Daniel’s Tennessee Apple (JDTA), Jack Daniel’s Tennessee Blackberry (JDTB), Jack Daniel’s Tennessee Fire (JDTF), Jack Daniel’s Single Barrel Collection (JDSB), Jack Daniel’s Bonded Series, Jack Daniel’s Sinatra Select, Jack Daniel’s 10 Year Old, Jack Daniel’s American Single Malt, Jack Daniel’s 14 Year Old, Jack Daniel’s 12 Year Old, and other Jack Daniel’s expressions. Other Metrics.
“Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this release unless otherwise specified, we refer to shipments when discussing volume. “Depletions.” This metric is commonly used in the beverage alcohol industry to describe volume. Depending on the context, depletions usually means either (a) where Brown-Forman is the distributor, shipments directly to retail or wholesale customers or (b) where Brown-Forman is not the distributor, shipments from distributor customers to retailers and wholesalers. We believe that depletions measure volume in a way that more closely reflects consumer demand than our shipments to distributor customers do. “Consumer takeaway.” When discussing trends in the market, we refer to consumer takeaway, a term commonly used in the beverage alcohol industry that refers to the purchase of product by consumers from retail outlets, including products purchased through e-commerce channels, as measured by volume or retail sales value. This information is provided by outside parties, such as Nielsen and the National Alcohol Beverage Control Association (NABCA). Our estimates of market share or changes in market share are derived from consumer takeaway data using the retail sales value metric. “Estimated net change in distributor inventories.” We generally recognize revenue when our products are shipped or delivered to customers. In the United States and certain other markets, our customers are distributors that sell downstream to retailers and consumers. We believe that our distributors’ downstream sales more closely reflect actual consumer demand than do our shipments to distributors. Our shipments increase distributors’ inventories, while distributors’ depletions (as described above) reduce their inventories. Therefore, it is possible that our shipments do not coincide with distributors’ downstream depletions and merely reflect changes in distributors’ inventories. Because changes in distributors’ inventories could affect our trends, we believe it is useful for investors to understand those changes in the context of our operating results. We perform the following calculation to determine the “estimated net change in distributor inventories”:
For both the current-year period and the comparable prior-year period, we calculate a “depletion-based” amount by (a) dividing the organic dollar amount (e.g., organic net sales) by the corresponding shipment volumes to arrive at a shipment-per-case amount, and (b) multiplying the resulting shipment-per-case amount by the corresponding depletion volumes. We subtract the year-over-year percentage change of the “depletion-based” amount from the year-over-year percentage change of the organic amount to calculate the “estimated net change in distributor inventories.” A positive difference is interpreted as a net increase in distributors’ inventories, which implies that organic trends could decrease as distributors reduce inventories; whereas a negative difference is interpreted as a net decrease in distributors’ inventories, which implies that organic trends could increase as distributors rebuild inventories.
A Jack Daniel's whiskey logo can be seen on a barrel at the company's distillery in Lynchburg, Tennessee, U.S. February 3, 2025. REUTERS/Kevin Wurm/File Photo Purchase Licensing Rights, opens new tab
June 4 (Reuters) - Whiskey maker Brown-Forman (BFb.N), opens new tab on Thursday warned of strained consumer spending behavior for the year even as the Jack Daniel's maker reported better-than-expected quarterly sales on the back of steady demand for premium spirits.
Shares of the Kentucky-based company rose 3% in morning trading after the company also forecast organic sales for fiscal 2027 to be flat, in line with fiscal 2026.
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Brown-Forman's results, its first since rejecting Sazerac's $15-billion approach and ending separate merger talks with Pernod Ricard(PERP.PA), opens new tab, shift investor focus back to the company's underlying performance amid a tough demand environment for spirits.
Shares of the company, which also makes Tequila Herradura, were trading at $25.50, still below the intraday high of $28.46 in March when merger talks with Pernod first emerged.
Brown-Forman underperforms S&P index after high-profile deal talks endThe company is executing a restructuring plan it announced in 2025, which includes cost-control measures such as job cuts, at a time when spirits makers are battling a multi-year sales slump due to slowing demand and tariff pressures.
"We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed markets," the company said in a statement, adding that it continues to expect "a challenging cost cycle in the year."
For the quarter ended April 30, the company's selling, general and administrative expenses rose about 34% to $259 million, driving its profit per share down 62% to 12 cents, well below analysts' estimates of 32 cents, according to data compiled by LSEG.
Brown-Forman sees a return to sales growthStill the company posted a 2% rise in fourth-quarter sales to $912 million, beating the average of analysts' estimates of $879.6 million, helped by strong demand for its premium offering, Jack Daniel’s Tennessee Blackberry whiskey.
Reporting by Koyena Das in Bengaluru; Editing by Leroy Leo
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