Deere & Company
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.28%.
Did DE Beat Earnings? Q2 2026 Results
Deere & Company delivered a resilient second quarter of fiscal 2026, posting diluted EPS of $6.55 on revenues of $13.37 billion, up 6.7% year-over-year, marking the fourth consecutive quarter the company has beaten consensus EPS estimates even as large agriculture markets continued to soften. The headline numbers masked a sharp divergence across segments: Production & Precision Agriculture saw net sales fall 14% to $4.50 billion with operating margins compressing to 15.7%, while Construction & Forestry surged 29% to $3.79 billion, becoming the quarter's standout driver as margins expanded to 14.8%. A meaningful tailwind came from a $272.00 million recovery tied to the Supreme Court's invalidation of IEEPA tariffs, with refund claims flowing through production costs. The company also closed its $439.00 million acquisition of construction technology firm Tenna LLC during the period. Looking ahead, Deere held its full-year fiscal 2026 net income guidance steady at $4.50 billion to $5.00 billion, reflecting confidence in its diversified portfolio despite a projected 15-20% decline in U.S. and Canada large ag markets.
- Small Ag & Turf sales increased due to higher shipment volumes and positive foreign currency translation
- Construction & Forestry sales increased due to higher shipment volumes and positive foreign currency translation
- Production & Precision Ag sales decreased due to lower shipment volumes, partially offset by positive foreign currency translation
- Financial Services net income increased due to favorable financing spreads and favorable derivative valuation adjustments
- Supreme Court invalidation of IEEPA tariffs resulted in $272 million recovery for tariff refund claims
- Favorable price realization in Small Ag & Turf and Construction & Forestry segments
“Our performance in the current market environment demonstrates the strength of our diversified portfolio. This is particularly reflected in the strong outcomes achieved by our Small Ag and Construction & Forestry divisions during this year.”
Deere CEO, on the earnings call
Forward Guidance & Outlook
Deere maintained its fiscal 2026 net income guidance of $4.5 billion to $5.0 billion. Segment outlooks: Production & Precision Ag net sales down 5-10% with 11-13% operating margin; Small Ag & Turf net sales up ~15% with 13.5-15% operating margin; Construction & Forestry net sales up ~20% with 10-12% operating margin; Financial Services net income ~$860 million. Equipment operations net operating cash flow forecast at $4.5-5.5 billion. Capital expenditures ~$1.4 billion. Effective tax rate 24-26%. Industry outlook for fiscal 2026: U.S. & Canada large ag down 15-20%, U.S. & Canada small ag & turf flat to up 5%, Europe ag flat to up 5%, South America ag down ~15%, Asia ag flat, U.S. & Canada construction equipment up ~5%, compact construction up ~5%, global forestry down ~5%, global roadbuilding up ~10%.
DE YoY Financials
DE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.