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Agri ETFs VEGI, KROP and FTAG rose as Deere's rally boosted the broader agriculture space.
Deere & Company (DE - Free Report) has reported first-quarter fiscal 2026 (ended Feb. 1, 2026) earnings of $2.42 per share, beating the Zacks Consensus Estimate of $1.92 on Feb. 19, 2026 before market open. However, the bottom line fell 24% from the prior-year quarter.
Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $8 billion, up 17.5% from the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $7.6 billion.
Total net sales (including financial services and others) were $9.61 billion, up 13% from the year-earlier quarter. The upside was driven by higher shipment volumes, partially offset by higher tariffs. Post earnings, shares gained about 11.6% on Feb. 19, 2026.
DE’s Segmental Performances in Q1
The Production & Precision Agriculture segment’s sales grew 3% from the prior-year quarter to $3.16 billion due to favorable foreign currency translation. Small Agriculture & Turf sales were up 24%. Construction & Forestry sales were $2.67 billion, up 34% year over year.
The cost of sales in the reported quarter grew 24.7% from the prior-year quarter to $6.28 billion. Total gross profit in the reported quarter fell 2.9% from the prior-year quarter to $1.72 billion.
Deere’s 2026 Guidance
The world's largest farm-equipment maker expects net income for fiscal 2026 between $4.5 billion and $5 billion, increased from the prior stated $4.00-$4.75 billion. Analysts on average expect Deere to post full-year net income of $4.45 billion, according to data compiled by LSEG, as quoted on Reuters.
Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Deere now expects 2026 net sales in two segments - Small Agriculture & Turf and Construction & Forestry - to rise about 15% each compared with its previous forecast for about 10% uptick.
"We're encouraged by the ongoing recovery in demand within both the construction and small agriculture segments," CEO John May said, as quoted on Reuters. However, Deere expects a pre-tax tariff hit of around $1.2 billion in fiscal 2026.
ETFs to Play
Against this backdrop, below we highlight a few exchange-traded funds (ETFs) those are heavy on Deere stock. These ETFs too gained on Feb. 19, 2026.
iShares MSCI Agriculture Producers ETF (VEGI - Free Report) – Up 3.5% on Feb. 19, 2026
The underlying MSCI ACWI Select Agriculture Producers Investable Market Index measures the equity performance of companies in both developed and emerging markets that are primarily engaged in the business of agriculture at or near the initial phase of agricultural input and production. The fund charges 39 bps in fees.
Global X AgTech & Food Innovation ETF (KROP - Free Report) – Up 2.8% on Feb. 19, 2026
The underlying Solactive AgTech & Food Innovation Index provides exposure to companies that are positioned to benefit from further advances in the fields of agricultural technology and food innovation. The fund charges 50 bps in fees and yields 2.33% annually.
First Trust Indxx Global Agriculture ETF (FTAG - Free Report) – Up 1.1% on Feb. 19, 2026
The underlying Indxx Global Agriculture Index is a market capitalization weighted index designed to measure the performance of companies which are directly or indirectly engaged in improving agricultural yields. The fund charges 70 bps in fees and yields 1.21% annually.
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Deere Stock Surges on Upbeat Earnings & Guidance: Agri ETFs to Play
Key Takeaways
Deere & Company (DE - Free Report) has reported first-quarter fiscal 2026 (ended Feb. 1, 2026) earnings of $2.42 per share, beating the Zacks Consensus Estimate of $1.92 on Feb. 19, 2026 before market open. However, the bottom line fell 24% from the prior-year quarter.
Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $8 billion, up 17.5% from the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $7.6 billion.
Total net sales (including financial services and others) were $9.61 billion, up 13% from the year-earlier quarter. The upside was driven by higher shipment volumes, partially offset by higher tariffs. Post earnings, shares gained about 11.6% on Feb. 19, 2026.
DE’s Segmental Performances in Q1
The Production & Precision Agriculture segment’s sales grew 3% from the prior-year quarter to $3.16 billion due to favorable foreign currency translation. Small Agriculture & Turf sales were up 24%. Construction & Forestry sales were $2.67 billion, up 34% year over year.
The cost of sales in the reported quarter grew 24.7% from the prior-year quarter to $6.28 billion. Total gross profit in the reported quarter fell 2.9% from the prior-year quarter to $1.72 billion.
Deere’s 2026 Guidance
The world's largest farm-equipment maker expects net income for fiscal 2026 between $4.5 billion and $5 billion, increased from the prior stated $4.00-$4.75 billion. Analysts on average expect Deere to post full-year net income of $4.45 billion, according to data compiled by LSEG, as quoted on Reuters.
Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Deere now expects 2026 net sales in two segments - Small Agriculture & Turf and Construction & Forestry - to rise about 15% each compared with its previous forecast for about 10% uptick.
"We're encouraged by the ongoing recovery in demand within both the construction and small agriculture segments," CEO John May said, as quoted on Reuters. However, Deere expects a pre-tax tariff hit of around $1.2 billion in fiscal 2026.
ETFs to Play
Against this backdrop, below we highlight a few exchange-traded funds (ETFs) those are heavy on Deere stock. These ETFs too gained on Feb. 19, 2026.
iShares MSCI Agriculture Producers ETF (VEGI - Free Report) – Up 3.5% on Feb. 19, 2026
The underlying MSCI ACWI Select Agriculture Producers Investable Market Index measures the equity performance of companies in both developed and emerging markets that are primarily engaged in the business of agriculture at or near the initial phase of agricultural input and production. The fund charges 39 bps in fees.
Global X AgTech & Food Innovation ETF (KROP - Free Report) – Up 2.8% on Feb. 19, 2026
The underlying Solactive AgTech & Food Innovation Index provides exposure to companies that are positioned to benefit from further advances in the fields of agricultural technology and food innovation. The fund charges 50 bps in fees and yields 2.33% annually.
First Trust Indxx Global Agriculture ETF (FTAG - Free Report) – Up 1.1% on Feb. 19, 2026
The underlying Indxx Global Agriculture Index is a market capitalization weighted index designed to measure the performance of companies which are directly or indirectly engaged in improving agricultural yields. The fund charges 70 bps in fees and yields 1.21% annually.