OpenNashEarnings

Deere (DE) · Industrials

Deere Q2 FY2026 earnings: summary, key numbers & outlook

Results filed 21 May 2026 · Quarter ended 3 May 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Deere Reports Second Quarter Net Income of $1.773 Billion, or $6.55 per share, on worldwide net sales and revenues of $13.369 billion, up 5 percent.

Deere earned $1.773 billion, or $6.55 per share, in the second quarter, slightly below last year's $1.804 billion, or $6.64 per share. Revenue rose 5 percent to $13.369 billion. Small Agriculture & Turf and Construction & Forestry grew strongly, with sales up 16% and 29%. Production & Precision Agriculture, which sells large farm equipment, fell 14% on lower shipments, and its operating profit dropped 39%. Deere also booked a $272 million recovery of tariff payments.

Management kept its full-year net income forecast at $4.5 billion to $5.0 billion. It expects large-farm equipment demand in the U.S. and Canada to fall 15 to 20% this year, while small farm equipment and construction demand grows. The main tension is that farm customers face continuing challenges, so growth in smaller equipment and construction must offset weakness in the largest and most profitable machines.

Key numbers

Net sales and revenues · GAAP
$13.369 billion

increased 5 percent

Net income attributable to Deere & Company · GAAP
$1.773 billion

compared with $1.804 billion a year ago

Diluted earnings per share · GAAP
$6.55

compared with $6.64 a year ago

Segment or metricValueChange
Production & Precision Agriculture net sales$4.5B-14%
Small Agriculture & Turf net sales$3.5B16%
Construction & Forestry net sales$3.8B29%
Where each number comes from
  • Net sales and revenues: “Worldwide net sales and revenues increased 5 percent, to $13.369 billion, for the second quarter of 2026 and rose 8 percent, to $22.981 billion, for six months.”
  • Net income attributable to Deere & Company: “Deere & Company reported net income of $1.773 billion for the second quarter ended May 3, 2026, or $6.55 per share, compared with net income of $1.804 billion”
  • Diluted earnings per share: “Deere & Company reported net income of $1.773 billion for the second quarter ended May 3, 2026, or $6.55 per share, compared with net income of $1.804 billion”
  • Production & Precision Agriculture net sales: “Production & Precision Agriculture | Second Quarter $ in millions | 2026 | 2025 | % Change Net sales | $4,503 | $5,230 | -14% Operating profit | $706”
  • Small Agriculture & Turf net sales: “Small Agriculture & Turf | Second Quarter $ in millions | 2026 | 2025 | % Change Net sales | $3,485 | $2,994 | 16% Operating profit | $719”
  • Construction & Forestry net sales: “Construction & Forestry | Second Quarter $ in millions | 2026 | 2025 | % Change Net sales | $3,790 | $2,947 | 29% Operating profit | $561”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ2 FY2026vs year agovs last quarter
Revenue$13.4B+4.7%+39.1%
Net income$1.8B−1.7%+170.3%
Diluted EPS$6.55−1.4%+170.7%
Free cash flow$1.7B+16.0%—

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Net income attributable to Deere & Companyfiscal 2026$4.5 billion to $5.0 billion
Effective tax ratefiscal 202624-26%
Net operating cash flow (Equipment Operations)fiscal 2026$4.5-5.5B
Capital expenditures (Equipment Operations)fiscal 2026~$1.4B

Key takeaways

  1. Profit slipped slightly despite higher revenue

    Net income was $1.773 billion versus $1.804 billion a year earlier, while net sales and revenues rose 5 percent to $13.369 billion.

  2. Large-farm equipment drove the weakness

    Production & Precision Agriculture net sales fell 14% and operating profit fell 39% to $706 million, with operating margin of 15.7% versus 22.0%.

  3. Small Ag and Construction posted strong growth

    Small Agriculture & Turf sales rose 16% and Construction & Forestry sales rose 29%, with operating profit up 25% and 48%.

  4. Tariff refund recovery of $272 million recorded

    After the Supreme Court invalidated IEEPA tariffs on February 20, 2026, Deere recorded a recovery of $272 million for refund claims accepted by U.S. Customs and Border Protection.

  5. Full-year net income forecast maintained

    Deere still expects fiscal 2026 net income of $4.5 billion to $5.0 billion, with U.S. and Canada Large Ag industry down 15 to 20%.

Charts

Revenue$13.4B+4.7% y/yQ2 FY26
Q4 FY24: $11.1B (worked out from the annual figure)Q4 24$11.1BQ1 FY25: $8.5BQ1 25$8.5BQ2 FY25: $12.8BQ2 25$12.8BQ3 FY25: $12.0BQ3 25$12.0BQ4 FY25: $12.4B (worked out from the annual figure)Q4 25$12.4BQ1 FY26: $9.6BQ1 26$9.6BQ2 FY26: $13.4BQ2 26$13.4BQ3 FY26: $12.6BQ3 26$12.6B

Fourth quarter worked out from the annual figure.

Data
Q4 FY24$11.1B *
Q1 FY25$8.5B
Q2 FY25$12.8B
Q3 FY25$12.0B
Q4 FY25$12.4B *
Q1 FY26$9.6B
Q2 FY26$13.4B
Q3 FY26$12.6B
Diluted EPS (GAAP)$6.55−1.4% y/yQ2 FY26
Q1 FY25: $3.19Q1 25$3.19Q2 FY25: $6.64Q2 25$6.64Q3 FY25: $4.75Q3 25$4.75Q1 FY26: $2.42Q1 26$2.42Q2 FY26: $6.55Q2 26$6.55Q3 FY26: $5.10Q3 26$5.10
Data
Q1 FY25$3.19
Q2 FY25$6.64
Q3 FY25$4.75
Q1 FY26$2.42
Q2 FY26$6.55
Q3 FY26$5.10

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Free cash flow$1.7B+16.0% y/yQ2 FY26
Q4 FY24: $4.5BQ4 24$4.5BQ1 FY25: -$1.5BQ1 25-$1.5BQ2 FY25: $1.5BQ2 25$1.5BQ3 FY25: $2.6BQ3 25$2.6BQ4 FY25: $3.5BQ4 25$3.5BQ1 FY26: -$1.1BQ1 26-$1.1BQ2 FY26: $1.7BQ2 26$1.7BQ3 FY26: $1.9BQ3 26$1.9B
Data
Q4 FY24$4.5B
Q1 FY25-$1.5B
Q2 FY25$1.5B
Q3 FY25$2.6B
Q4 FY25$3.5B
Q1 FY26-$1.1B
Q2 FY26$1.7B
Q3 FY26$1.9B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Deere's second-quarter fiscal 2026 results?

Net income was $1.773 billion, or $6.55 per share, versus $1.804 billion, or $6.64 per share, a year earlier. Net sales and revenues rose 5 percent to $13.369 billion.

What is Deere's full-year 2026 outlook?

Deere forecasts fiscal 2026 net income attributable to the company of $4.5 billion to $5.0 billion, unchanged from its prior guidance. It also expects a 24-26% effective tax rate and $4.5-5.5B of equipment operations operating cash flow.

Which segments did well and which struggled?

Small Agriculture & Turf sales rose 16% and Construction & Forestry sales rose 29%. Production & Precision Agriculture sales fell 14% and its operating profit fell 39%.

How did tariffs affect the quarter?

After the Supreme Court invalidated IEEPA tariffs, Deere recorded a $272 million recovery for refund claims accepted by U.S. Customs and Border Protection. The impact is mainly in the Production Costs category by segment.

What does Deere expect for farm and construction markets in 2026?

It expects U.S. and Canada Large Ag down 15 to 20% and South American tractors and combines down about 15%. It expects U.S. and Canada Small Ag & Turf flat to up 5% and U.S. and Canada construction equipment up about 5%.

Documents

SEC filing