AGCO (NYSE:AGCO) Shares Gap Up After Better-Than-Expected Earnings

AGCO Corporation (NYSE:AGCO)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $121.68, but opened at $127.79. AGCO shares last traded at $122.2040, with a volume of 258,792 shares changing hands.

The industrial products company reported $2.17 earnings per share for the quarter, topping the consensus estimate of $1.85 by $0.32. AGCO had a net margin of 3.73% and a return on equity of 9.36%. The business had revenue of $2.92 billion for the quarter, compared to analyst estimates of $2.67 billion. During the same quarter in the prior year, the firm earned $1.97 EPS. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year. AGCO has set its FY 2026 guidance at 5.500-6.000 EPS.

AGCO Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Friday, February 13th will be paid a $0.29 dividend. The ex-dividend date is Friday, February 13th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. AGCO’s payout ratio is 23.06%.

Key Stories Impacting AGCO

Here are the key news stories impacting AGCO this week:

• Positive Sentiment: Q4 earnings and revenue beat — AGCO reported $2.17 EPS vs. consensus ~ $1.85 and revenue of $2.92B, topping estimates and signaling better-than-expected operating performance. AGCO shares rise nearly 3% as fourth quarter results exceed expectations
• Positive Sentiment: 2026 revenue guidance above street — management set 2026 net sales of $10.4B–$10.7B, above consensus, implying topline improvement next year. Agco outlines $10.4B-$10.7B 2026 sales target while advancing precision ag and cost savings
• Positive Sentiment: Strong cash flow and margins — AGCO reported record free cash flow of $740M (2025) and adjusted operating margin improvement, giving financial flexibility for investment and buybacks. AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTS
• Positive Sentiment: Management expects demand pickup — CEO highlighted aging farm fleets and margin discipline as catalysts for a recovery, supporting optimism around equipment replacement cycles. AGCO CEO Says Aging Farm Fleets Set Stage For Demand Pickup
• Neutral Sentiment: CEO interview and tariff comments — management discussed results and tariff impacts in a CEO interview; useful context but not a clear directional catalyst. Agco earnings: CEO talks results, tariff impact
• Neutral Sentiment: Analyst/metrics coverage — several outlets reviewed Q4 metrics (Zacks, Quiver), highlighting the beat but mixed indicators; analyst price targets remain varied. Here’s What Key Metrics Tell Us About Agco (AGCO) Q4 Earnings
• Negative Sentiment: 2025 sales decline — full-year 2025 net sales fell ~13.5% versus prior year, underscoring the cyclicality and the risk that a recovery may be gradual. AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTS
• Negative Sentiment: Insider selling and fund rotation — recent disclosures show insider sales and mixed institutional activity, which could limit near-term upside if sustained. $AGCO ($AGCO) Releases Q4 2025 Earnings

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on AGCO shares. Oppenheimer raised their price target on AGCO from $123.00 to $128.00 and gave the company an “outperform” rating in a report on Wednesday, December 3rd. Barclays cut AGCO from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from $116.00 to $93.00 in a report on Friday, December 19th. UBS Group cut their price target on AGCO from $119.00 to $115.00 and set a “neutral” rating for the company in a report on Monday, January 5th. Weiss Ratings reissued a “hold (c)” rating on shares of AGCO in a report on Monday, December 22nd. Finally, Citigroup boosted their target price on shares of AGCO from $115.00 to $120.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 13th. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $111.80.

Insider Activity

In other news, SVP Kelvin Eugene Bennett sold 250 shares of AGCO stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $104.28, for a total transaction of $26,070.00. Following the completion of the sale, the senior vice president owned 17,130 shares in the company, valued at $1,786,316.40. The trade was a 1.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 16.60% of the company’s stock.

Hedge Funds Weigh In On AGCO

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Cullen Frost Bankers Inc. raised its position in shares of AGCO by 1,721.4% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 255 shares of the industrial products company’s stock valued at $27,000 after acquiring an additional 241 shares during the last quarter. Pinnacle Bancorp Inc. bought a new stake in AGCO in the third quarter valued at about $29,000. EverSource Wealth Advisors LLC increased its holdings in AGCO by 951.9% in the second quarter. EverSource Wealth Advisors LLC now owns 284 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 257 shares during the last quarter. SJS Investment Consulting Inc. lifted its stake in AGCO by 3,725.0% in the third quarter. SJS Investment Consulting Inc. now owns 306 shares of the industrial products company’s stock valued at $33,000 after buying an additional 298 shares during the period. Finally, Advisory Services Network LLC bought a new position in AGCO during the third quarter worth about $33,000. 78.80% of the stock is owned by institutional investors.

AGCO Price Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.73 and a current ratio of 1.58. The company has a market capitalization of $9.27 billion, a price-to-earnings ratio of 24.70, a price-to-earnings-growth ratio of 11.02 and a beta of 1.19. The company has a 50-day moving average price of $109.40 and a 200-day moving average price of $109.05.

About AGCO

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

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