Agricultural finance company Farmer Mac (NYSE:AGM) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 20.6% year on year to $109.9 million. Its non-GAAP profit of $4.74 per share was 6.7% above analysts’ consensus estimates.
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Farmer Mac (AGM) Q1 CY2026 Highlights:
- Revenue: $109.9 million vs analyst estimates of $110.8 million (20.6% year-on-year growth, 0.8% miss)
- Pre-tax Profit: $71.44 million (65% margin)
- Adjusted EPS: $4.74 vs analyst estimates of $4.44 (6.7% beat)
- Market Capitalization: $1.81 billion
"I'm very pleased to report that we delivered record results across the board in first quarter 2026, delivering double-digit year-over-year growth in business volume, revenue, and core earnings, as we approached $35 billion in total outstanding business volume," said Brad Nordholm, Chief Executive Officer.
Company Overview
Created by Congress in 1987 to build a bridge between Wall Street and rural America, Farmer Mac (NYSE:AGM) provides a secondary market for agricultural and rural loans, helping lenders increase their liquidity and lending capacity to serve rural America.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Farmer Mac grew its revenue at a solid 11.9% compounded annual growth rate. Its growth beat the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Farmer Mac’s recent performance shows its demand has slowed as its annualized revenue growth of 4.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Farmer Mac generated an excellent 20.6% year-on-year revenue growth rate, but its $109.9 million of revenue fell short of Wall Street’s high expectations.
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Key Takeaways from Farmer Mac’s Q1 Results
It was good to see Farmer Mac beat analysts’ EPS expectations this quarter. On the other hand, its revenue slightly missed. Zooming out, we think this was a mixed quarter. The stock traded up 1.4% to $173.80 immediately following the results.
Is Farmer Mac an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).