• Earlier this month, Darling Ingredients was highlighted by Zacks and Brown Brothers Harriman for stronger-than-expected Q1 2026 results, improving margins at Diamond Green Diesel, and analyst forecasts pointing to higher 2026 sales and a very large increase in EPS.
• Government mandates finalized at the end of Q1 2026 and higher commodity prices linked to Middle East conflict are increasingly shaping investor views on Darling’s earnings power and segment profitability.
• Next, we’ll examine how stronger Feed and Food segment performance and improving Diamond Green Diesel margins influence Darling Ingredients’ broader investment narrative.

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Darling Ingredients Investment Narrative Recap

To own Darling Ingredients, you need to believe in its ability to turn waste and animal byproducts into higher value ingredients and renewable fuels while managing policy and commodity swings. The latest Zacks and Brown Brothers Harriman commentary supports that near term earnings power, with stronger Q1 2026 results and improving Diamond Green Diesel margins reinforcing the key catalyst of margin recovery. These updates do not remove the main risk around ongoing regulatory and feedstock cost volatility, but they do help frame it more clearly.

The most relevant recent update here is Brown Brothers Harriman’s Q2 2026 investor letter, which singled out Darling as a significant holding after better than expected Q1 performance in the Feed and Food segments and stronger Diamond Green Diesel margins. That dovetails with the bullish Zacks estimates for 2026 sales and EPS, and ties directly into the thesis that improved renewable diesel profitability and more resilient core segments could matter more if policy support and commodity trends stay constructive.

Yet despite the stronger earnings momentum, investors should also weigh the risk that feedstock competition and higher input costs could eventually pressure the very margins that are now improving...

Darling Ingredients' narrative projects $7.3 billion revenue and $878.1 million earnings by 2029. This requires 3.6% yearly revenue growth and a roughly $280 million earnings increase from $597.9 million today.

Uncover how Darling Ingredients' forecasts yield a $78.58 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Some of the most cautious analysts were assuming only about 2.5 percent annual revenue growth and US$750.7 million of earnings by 2029, so compared with today’s stronger results and policy support, their focus on regulatory uncertainty and margin pressure offers a much more pessimistic narrative that you should weigh against the recent bullish news.

Explore 5 other fair value estimates on Darling Ingredients - why the stock might be worth over 2x more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Darling Ingredients research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Darling Ingredients research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Darling Ingredients' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.