AI Takeaway
CTVA delivered strong Q1 FY2026 revenue growth of 11.0% to $4.91B and net income of $720M (+10.4% YoY), though operating cash outflows deepened significantly to -$2.89B, reflecting the seasonal working capital dynamics typical of the agricultural inputs business.
Revenue
$4.91B
++11.05% YoY
EPS (Basic)
$1.07
++12.63% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue surged 11.0% YoY to $4.91B in Q1 FY2026 (vs. $4.42B in Q1 FY2025), indicating robust demand for Corteva's seed and crop protection products. This growth significantly outpaced cost of revenue growth of just 1.3%, suggesting improved pricing power or favorable product mix.
Source: Source: 10-Q Income Statement Data
With revenue growing 11.0% while cost of revenue rose only 1.3% ($2.37B vs. $2.34B), gross profit expanded meaningfully, reflecting operational leverage and potentially favorable input cost trends in Q1 FY2026.
Source: Source: 10-Q Income Statement Data
SG&A expenses rose 16.8% YoY to $877M from $751M, outpacing revenue growth of 11.0%. This elevated spending could reflect increased commercial investments, restructuring costs, or integration-related expenses that may pressure operating margins going forward.
Source: Source: 10-Q Income Statement Data
2 more insights available
Upgrade to unlockOperating cash outflow widened 37.1% YoY to -$2.89B in Q1 FY2026, significantly exceeding the prior year's -$2.11B. While seasonal working capital build is normal for agricultural input companies, the accelerating outflow could strain liquidity if not offset by strong in-season collections. Cash and equivalents declined 2.2% YoY to $1.96B.
Source: Source: 10-Q Cash Flow Statement Data
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Upgrade to unlockReported EPS of $1.50 versus the $1.20 analyst consensus — a +25.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.91B | $4.42B | +11.05% |
Cost of Revenue | $2.37B | $2.34B | +1.28% |
Net Income | $720M | $652M | +10.43% |
EPS (Basic) | $1.07 | $0.95 | +12.63% |
EPS (Diluted) | $1.07 | $0.95 | +12.63% |
R&D Expense | $341M | $335M | +1.79% |
SG&A Expense | $877M | $751M | +16.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $42.72B | $42.12B | +1.41% |
Current Assets | $17.39B | $16.59B | +4.81% |
Current Liabilities | $11.85B | $11.48B | +3.25% |
Stockholders' Equity | $24.36B | $24.29B | +0.32% |
Cash & Equivalents | $1.96B | $2.01B | -2.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-2.89B | $-2.11B | -37.08% |
Investing Cash Flow | $-77M | $-34M | -126.47% |
Financing Cash Flow | $389M | $995M | -60.90% |
Dividends Paid | $121M | $116M | +4.31% |
Share Buybacks | $250M | $270M | -7.41% |
D&A | $297M | $296M | +0.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 14.7% | — | — |
ROE | 3.0% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $1.467 | — | — |
Other companies in Fertilizers & Agricultural Chemicals
CTVA reported Q1 FY2026 revenue of $4.91B, up 11.0% YoY, and net income of $720M, up 10.4% YoY. EPS came in at $1.07 (basic and diluted), a 12.6% improvement over the prior year's $0.95.
CTVA's operating cash flow was -$2.89B in Q1 FY2026, which is typical for agricultural input companies that build large inventories and extend credit to farmers ahead of the spring planting season. However, this represented a 37.1% deterioration from -$2.11B in Q1 FY2025, which may reflect larger working capital requirements or timing differences.
Yes, CTVA's gross margins improved in Q1 FY2026 as revenue grew 11.0% while cost of revenue rose only 1.3%, indicating strong pricing power or favorable product mix. Net margin was approximately 14.7%, and net income of $720M was up 10.4% YoY.
Key risks include the deepening seasonal operating cash outflow of -$2.89B (37.1% worse YoY), SG&A expenses growing 16.8% YoY to $877M — outpacing revenue growth — and a 60.9% decline in financing cash flow to $389M, which limits financial flexibility. Low ROE of ~2.96% and ROA of ~1.69% also reflect the capital-intensive nature of the business.
CTVA returned $371M to shareholders in Q1 FY2026 through $250M in share buybacks and $121M in dividends paid. Share buybacks declined 7.4% YoY from $270M, while dividends grew 4.3% from $116M, reflecting a continued commitment to shareholder returns despite elevated seasonal cash outflows.