U.S. farmers are shifting more corn acres to soybeans this year, providing tailwinds for Corteva’s soybean business, as the ag supplier plans to take greater market share in Brazil, executives shared during the company’s Q1 earnings call.
On May 5, seed and crop protection company Corteva released its Q1 2026 fiscal results with $4.905 billion in net sales and an 11% increase year-over-year. Corteva reaffirmed its full-year guidance of $4-4.2 billion in EBITA and $3.45-3.70 in earnings per share.
Corteva grew both of its business segments, with double-digit gains in new products and spinosads, an active ingredient in insecticides, noted Chuck Magro, CEO of Corteva. This comes as U.S. farmer demand for Corteva produces remains strong, despite ongoing volatility, associated with the Iran war.
U.S. farmers are expected to “shift planted area from corn to soybeans, resulting in a projected 3 to 4% reduction in corn acres,” Magro noted. Corteva’s Enlist soybeans “will be planted on about 65% of all US soybean acres in 2026,” he added.
Holding the number one soybean position in the U.S., Corteva is “now set on becoming the leading provider of soybean technology in Brazil,” where “its branded corn business already holds the number one position,” Magro explained.
“Planning in the Northern Hemisphere is proceeding well. The weather has cooperated for the most part, and we are well-positioned with technology that is in high demand. However, farmers remain cautious and value-driven. Crop mix and technology choices are increasingly strategic, aligning acreage and input decisions towards crops with the best demand signals. Overall, strong crop acreage is supporting strong seed and crop protection volume demand,” Magro elaborated.
He added, “With regards to the Middle East conflict, although we have minimal commercial presence in the area, we’re monitoring the situation closely. Given what we know today while we’re keeping an eye on any feedstock exposure to our supply base - the main impact for Corteva is currently related to increases in oil prices. However, given typical inventory cycle turns, we believe the 2026 impact is manageable within our current guidance range.”
What’s next for New Corteva and Vylor
Later this year, Corteva will split into New Corteva and Vylor, which will house the seed and crop protection and genomics businesses, respectively. The ag supplier already revealed the executive teams for both companies, with Magro assuming the role of Vylor CEO upon the split.
“Vylor’s success will be driven by industry-leading germplasm, biotech, and gene-editing capabilities, as well as a world-class pipeline that includes an exciting new licensing business, proprietary hybrid wheat technology launching next year, and a next-gen biofuels development program. And with a nod towards the future, Vylor reflects our passion, our ambition and our shared determination to advance agriculture to maybe one day opportunities beyond row crops,” Magro said.
Over the years, Corteva invested in its crop protection business and expects additional volume growth, with biologicals in Latin America being a key market, the executives shared on the earnings call.
Last year, Corteva’s venture arm invested in Argentinian biological company Puna Bio and Brazilian Symbiomics.
“In the next decade, we’re going to have something like seven new active ingredients, plus a whole host of new biologicals. In fact, we’re going to roll out our first biocontrol,” Magro elaborated.
Corteva’s Q1 by the numbers
In its largest business unit, Corteva’s seed business generated $3.023 billion in net sales, growing by 11% year-over-year, with North America, EMEA, Latin America, and Asia Pacific contributing $1.770 billion, $928 million, $224 million, and $101 million, respectively.
Corteva’s crop protection business generated $1.882 billion sales, growing by 10% year-over-year, with EMEA, North America, Latin America, and Asia Pacific accounting for $727 million, $669 million, $282 million, and $204 million, respectively.
Corteva’s stock dropped on the day of the earnings call, trading around $82.47 and down around 1.63%, as of time of publication.
