Agricultural and farm machinery company AGCO (NYSE: AGCO) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 1.1% year on year to $2.92 billion. The company’s full-year revenue guidance of $10.55 billion at the midpoint came in 5% above analysts’ estimates. Its GAAP profit of $1.30 per share was 25.5% below analysts’ consensus estimates.

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Company Overview

With a history that features both organic growth and acquisitions, AGCO (NYSE: AGCO) designs, manufactures, and sells agricultural machinery and related technology.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, AGCO’s 2% annualized revenue growth over the last five years was sluggish. This fell short of our benchmarks and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. AGCO’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 16.4% annually. AGCO isn’t alone in its struggles as the Agricultural Machinery industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time.

This quarter, AGCO reported modest year-on-year revenue growth of 1.1% but beat Wall Street’s estimates by 9.6%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector.

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Operating Margin

AGCO was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.4% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Looking at the trend in its profitability, AGCO’s operating margin decreased by 3.1 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. AGCO’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, AGCO generated an operating margin profit margin of 7.9%, up 17.2 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

AGCO’s EPS grew at a solid 11.5% compounded annual growth rate over the last five years, higher than its 2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of AGCO’s earnings can give us a better understanding of its performance. A five-year view shows that AGCO has repurchased its stock, shrinking its share count by 2.6%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For AGCO, its two-year annual EPS declines of 21% mark a reversal from its (seemingly) healthy five-year trend. We hope AGCO can return to earnings growth in the future.

In Q4, AGCO reported EPS of $1.30, up from negative $3.43 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects AGCO’s full-year EPS of $9.75 to shrink by 41.6%.

Key Takeaways from AGCO’s Q4 Results

We were impressed by how significantly AGCO blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance trumped Wall Street’s estimates. On the other hand, its EPS missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 1.9% to $124.04 immediately after reporting.

So do we think AGCO is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).