Deere & Company Stock Earnings Reports

Deere reported Q2 FY2026 net sales up 5% to $13.37B and equipment operations margin of 16.9%, with net income attributable to Deere of $1.773B (EPS $6.55). Key segment results: Production & Precision Ag sales down ~14% (15.7% margin) due to lower shipments; Small Ag & Turf sales up 16% with a 20.6% margin; Construction & Forestry sales up 29% with a 14.8% margin. Deere recognized a one-time $272M tariff refund this quarter; however, management says full-year direct tariff exposure remains ~ $1.2B (net of the refund ~ $900M). Company maintained its FY2026 enterprise net income guidance of $4.5B–$5.0B, raised Financial Services outlook to ~$860M, increased C&F net sales and margin guidance (C&F net sales now +~20%, margin 10–12%), and kept equipment operations implied price realization at ~1.5–2% (ex-tariffs). Inventories: new high‑horsepower and combine inventories are down >50% from mid‑2024 peaks and used inventory has improved meaningfully (used down mid‑teens). Construction demand is robust (rental, infrastructure, road building, data center site prep) with orderbook strength and expanded production slots; Deere increased C&F guidance accordingly. Precision Ag momentum continues (new large tractors, See & Spray adoption, connectivity via Starlink, growing engaged acres and digital users), with high renewal rates and growing monthly active digital users (~440k). Capital allocation: returned $635M in Q2 via buybacks/dividends and reiterated disciplined investment (R&D, U.S. manufacturing commitments). Management expects FY2026 back half (especially Q4) to be stronger on revenue, margins and favorable cost comparisons as tariffs and some inflationary comps lap, and views 2026 as bottom of the large‑ag cycle with recovery potential in 2027 subject to geopolitics, input costs and policy developments.