Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CF Industries delivered a strong Q1 FY2026 with revenue surging 19.4% YoY to $1.99B and operating income nearly doubling (+89.7%) to $863M, driven by significantly improved margins and a robust balance sheet.
Revenue
$1.99B
+19.42% YoY
EPS (Diluted)
$3.98
+115.14% YoY
Gross Margin
37.6%
+3.2 pts YoY
Operating Income
$863M
+89.67% YoY
Source: SEC XBRL
CF Industries Holdings (CF) reported Q1 FY2026 revenue of $1.99B, up 19.4% year over year. Operating margin was 43.5%, up 16.1 points from 27.4% a year earlier. Operating cash flow was $496M, down 15.4% year over year. CF's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.51 | 5.67 | Miss -20.5% |
| Mar 2026This filing | 2.89 | 2.67 | Beat +8.2% |
| Dec 2025 | 3.20 | 2.56 | Beat +24.9% |
| Sep 2025 | 2.22 | 2.20 | Beat +0.7% |
Adjusted (non-GAAP) EPS of $2.89 versus the $2.67 analyst consensus — a +8.2% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.98.
Compiled by AI from this SEC filing
Revenue increased 19.4% YoY from $1.66B to $1.99B in Q1 FY2026, suggesting favorable nitrogen fertilizer pricing dynamics or volume improvements that more than offset any cost headwinds.
Source: 10-Q Income Statement Data
Gross margin expanded 320 basis points to 37.6% while operating margin surged from 27.4% to 43.5% — a 16.1 percentage point improvement — indicating strong operating leverage and cost discipline relative to revenue growth.
Source: 10-Q Income Statement & Key Ratios
Cost of revenue rose only 13.7% YoY to $1.24B versus revenue growth of 19.4%, resulting in gross profit jumping 30.4% to $746M, reflecting improved production economics or lower input costs (e.g., natural gas).
Source: 10-Q Income Statement Data
SG&A expenses grew 22.6% YoY to $103M, slightly outpacing revenue growth, but remain a small fraction of revenue (~5.2%), indicating overhead is well-controlled relative to the scale of the business.
Source: 10-Q Income Statement Data
Current assets rose 39.4% YoY to $3.39B against current liabilities of only $958M, yielding a current ratio of 3.54 — well above the 1.0 safety threshold — signaling excellent short-term financial health.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
CF Industries is a major nitrogen fertilizer producer whose primary input cost is natural gas. A significant spike in natural gas prices could compress margins rapidly, as seen historically. The 13.7% rise in cost of revenue warrants monitoring for input cost trends.
Source: 10-Q Income Statement Data
Operating cash flow fell 15.4% YoY to $496M even as net income and operating income surged, suggesting potential working capital build-up or timing differences in cash collections. This divergence between earnings and cash generation could be a concern if sustained.
Source: 10-Q Cash Flow Statement Data
Long-term debt rose 8.2% YoY to $3.22B, increasing financial leverage. While the company's strong earnings and liquidity can service this debt, rising interest rates or a downturn in fertilizer prices could pressure debt serviceability.
Source: 10-Q Balance Sheet Data
Share repurchases dropped 93.7% YoY from $444M to just $28M in Q1 FY2026, which may indicate a strategic shift in capital allocation or management's caution about deploying capital at current valuations. This could disappoint investors who valued the buyback program.
Source: 10-Q Cash Flow Statement Data
CF Industries operates in a highly cyclical commodity market where nitrogen fertilizer prices are subject to global supply-demand imbalances, geopolitical disruptions (e.g., Russian gas/fertilizer exports), and agricultural demand shifts. The current strong margins may not be sustainable through a full cycle.
Source: 10-Q Financial Data (Operating Margin 43.5%)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.99 $B | 1.66 $B | +19.42% |
Cost of Revenue $B | 1.24 $B | 1.09 $B | +13.66% |
Gross Profit $M | 746.00 $M | 572.00 $M | +30.42% |
Operating Income $M | 863.00 $M | 455.00 $M | +89.67% |
EPS (Basic) $ | 3.99 $ | 1.85 $ | +115.68% |
EPS (Diluted) $ | 3.98 $ | 1.85 $ | +115.14% |
SG&A Expense $M | 103.00 $M | 84.00 $M | +22.62% |
Answers draw on this SEC filing and the data on this page
CF Industries' Q2 FY2026 net income nearly doubled on soaring nitrogen prices fueled by global supply disruptions, though sales volumes fell due to the Yazoo City plant idling.
CF Industries delivered a strong FY2025 with revenue rising 19.3% to $7.08B and operating income surging 31.7% to $2.30B, driven by improved nitrogen fertilizer pricing and disciplined cost management.
Other companies in Fertilizers & Agricultural Chemicals