What Happened?

Shares of agricultural finance company Farmer Mac (NYSE: AGM) fell 12.2% in the morning session after it reported fourth-quarter 2025 earnings that fell short of Wall Street's expectations. 

The company posted quarterly adjusted earnings of $3.66 per share, missing analyst estimates of $4.53 by 19.1%. This figure also represented a decrease from the $3.97 per share earned in the same period last year. The decline in profitability was stark, with the company's pre-tax profit margin falling by 13.8 percentage points compared to the same quarter last year. While Farmer Mac's revenue of $107.9 million met expectations, investors appeared to focus on the significant earnings shortfall.

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What Is The Market Telling Us

Farmer Mac’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Farmer Mac and indicate this news significantly impacted the market’s perception of the business.

Farmer Mac is down 12.8% since the beginning of the year, and at $153.77 per share, it is trading 26.7% below its 52-week high of $209.73 from August 2025. Investors who bought $1,000 worth of Farmer Mac’s shares 5 years ago would now be looking at an investment worth $1,809.

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