# Deere (DE) Q2 FY2026 earnings

Results filed 2026-05-21 for the quarter ended 2026-05-03. Source page: https://earnings.opennash.com/companies/de/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/315189/000110465926064747/0001104659-26-064747-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net sales and revenues | $13.369 billion | increased 5 percent | GAAP |
| Net income attributable to Deere & Company | $1.773 billion | compared with $1.804 billion a year ago | GAAP |
| Diluted earnings per share | $6.55 | compared with $6.64 a year ago | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Production & Precision Agriculture net sales | $4,503 | -14% |
| Small Agriculture & Turf net sales | $3,485 | 16% |
| Construction & Forestry net sales | $3,790 | 29% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Net income attributable to Deere & Company | fiscal 2026 | $4.5 billion to $5.0 billion |
| Effective tax rate | fiscal 2026 | 24-26% |
| 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%.

## 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%.