Overview

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

• Adjusted EPS for Q1 was $0.94, beating analyst consensus

• Company to begin $350 mln share repurchases in Q2 2026

Outlook

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

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

• AGCO targets 2026 EPS at approximately $6.00

Result Drivers

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

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

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

Company press release: ID:nPn8sv0S0a

Key Details

Analyst Coverage

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

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

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

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

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