The narrow guidance range ($4.5-5.0B vs prior $4.0-4.75B) signals management's confidence the large ag cycle trough is near, reinforced by the $272M IEEPA tariff refund and strong C&F and Small Ag results. Monitor Q3 results for continued margin expansion in C&F (target 10-12% op margin vs 9% FY 2025) and PPA bottoming. The Tenna acquisition positions Deere in construction tech—watch for cross-sell metrics.
Price Chart
Executive Summary
Deere & Co. reported Q2 2026 net income of $1.773B ($6.55 diluted EPS), a 2% decline YoY from $1.804B ($6.64), on total net sales and revenues of $13.369B (+5% YoY). The headline EPS of $6.55 exceeded the pre-release consensus of $5.74 by +14.1%, driven by strength in Small Ag & Turf (operating profit +25% YoY) and Construction & Forestry (+48% YoY), which offset a -39% decline in Production & Precision Agriculture. Net income guidance for FY 2026 was maintained at $4.5-5.0B, a narrower range vs the prior $4.0-4.75B outlook, signaling confidence that large ag cycle trough is near.
Key Financial Metrics
Key Facts
- Q2 2026 diluted EPS $6.55, +14.1% vs consensus $5.74
- Total net sales and revenues $13.369B (+5% YoY), above consensus $11.50B
- Net income $1.773B, -2% YoY vs $1.804B
- Production & Precision Ag net sales -14% YoY, operating profit -39% YoY
- Small Ag & Turf net sales +16% YoY, operating profit +25% YoY to $719M
- Construction & Forestry net sales +29% YoY, operating profit +48% YoY to $561M
- FY 2026 net income guidance narrowed to $4.5-$5.0B vs prior $4.0-$4.75B
- Operating cash flow (equipment ops) forecast at $4.5-$5.5B
- $272M recovery on invalidated IEEPA tariffs recorded in Q2
- $439M acquisition of Tenna LLC (construction tech) in February 2026
Financial Impact
EPS beat of +14.1% (+$0.81/share) on $1.869B revenue beat vs consensus. FY 2026 guidance mid-point raised $375M from $4.375B to $4.75B.
Risk Factors
- Large ag industry down 15-20% continues to pressure PPA segment (operating profit -39%)
- South America ag outlook revised down (flat to down ~15%) from prior flat
- Ongoing tariff uncertainty despite IEEPA ruling—retaliatory tariffs remain a risk
- FTC lawsuit over self-repair capabilities could impose material compliance costs
- Inventories increased $782M to $8.188B, suggesting potential destocking risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-064747 |
| Document: de-20260521x8k.htm | 0001104659-26-064747 |
| Document: de-20260521xex99d2.htm | 0001104659-26-064747 |
| Document: 0001104659-26-064747-index-headers.html | 0001104659-26-064747 |
| Document: 0001104659-26-064747-index.html | 0001104659-26-064747 |
| Document: 0001104659-26-064747.txt | 0001104659-26-064747 |
| 8-K Data (Synthetic) | 0001104659-26-064747 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | Press Release | $634.54 $684.73 | ▲ +7.91% | ▲ +6.71% | $675.18 (+6.40%) |
Aug 20, 2026 6w ago | Press Release | $620.94 $683.99 | ▲ +10.15% | ▲ +10.15% | $675.18 (+8.73%) |
Aug 20, 2026 6w ago | 8-K | $620.94 $683.99 | ▲ +10.15% | ▲ +10.15% | $675.18 (+8.73%) |
Aug 5, 2026 8w ago | Press Release | $611.81 $698.37 | ▲ +14.15% | ▲ +14.75% | $675.18 (+10.36%) |
Jun 1, 2026 17w ago | 8-K | $578.66 $627.63 | ▲ +8.46% | ▲ +10.28% | $675.18 (+16.68%) |
May 21, 2026 19w ago | 8-K | $530.97 $589.24 | ▲ +10.97% | ▲ +10.43% | $675.18 (+27.16%) |
US Market Status
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