We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deere Earnings Surpass Estimates in Q2, Sales Increase Y/Y
Read MoreHide Full Article
Key Takeaways
Deere posted Q2 EPS of $6.55, topping estimates as equipment sales rose 5.4% y/y.
DE's Construction & Forestry sales jumped 29%, while Small Ag & Turf sales climbed 16%.
Deere maintained fiscal 2026 net income guidance of $4.5-$5B despite weaker ag demand.
Deere & Company (DE - Free Report) reported second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.
Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top-line beat the Zacks Consensus Estimate of $11.44 billion.
Total net sales and revenues (including Financial Services and other income) rose 5% year over year to $13.37 billion. Top-line growth was driven by higher shipment volumes and favorable currency translation in key segments, partly offset by softer Production & Precision Ag volumes and higher production costs.
On a consolidated basis, cost of sales increased 8.6% year over year to $8.27 billion, outpacing the 5% rise in net sales. Research and development expenses grew 6.2% to $583 million, while selling, administrative and general expenses inched up 1% to $1.21 billion.
Total operating profit decreased 3.1% year over year to $2.237 billion.
DE’s Segmental Performances in Q2
The Production & Precision Agriculture segment’s net sales declined 14% year over year to $4.50 billion due to lower shipment volumes, partially offset by favorable foreign currency translation. Segment operating profit fell 39% from the year-ago quarter to $706 million, reflecting lower shipment volumes and higher production costs, partially offset by favorable foreign currency exchange.
Small Agriculture & Turf net sales increased 16% year over year to $3.49 billion on higher shipment volumes and favorable foreign currency translation. Operating profit rose 25% year over year to $719 million, driven mainly by higher shipment volumes and favorable price realization.
Construction & Forestry net sales were $3.79 billion, up 29% year over year, primarily on higher shipment volumes and favorable foreign currency translation. Operating profit improved 48% year over year to $561 million, aided by higher shipment volumes and favorable price realization, partially offset by higher production costs.
Revenues in Deere’s Financial Services division were $1.37 billion in the quarter, down 1% year over year. The segment’s operating profit increased 21% year over year to $251 million. Net income for Financial Services climbed 18% year over year to $190 million in the fiscal second quarter.
Deere’s Q2 Cash Position
Balance sheet and cash-flow metrics were supportive. Cash and cash equivalents were $7.905 billion as of May 3, 2026, and inventories were $8.188 billion. For the first six months of fiscal 2026, net cash provided by operating activities was $1.04 billion, up from $0.57 billion in the prior-year period, reinforcing Deere’s financial flexibility through a choppier demand environment.
DE Maintains 2026 Profit View
Deere maintained its forecast for net income attributable to the company for fiscal 2026 at $4.5-$5 billion.
Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Sales of Small Agriculture & Turf are expected to rise 15%. Sales of Construction & Forestry are projected to increase 20%. The Financial Services segment’s net income is expected to be $860 million.
Deere’s Share Price Performance
Shares of the company have gained 10.3% in the past year compared with the industry’s 7.2% growth.
Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.15 in second-quarter fiscal 2026 (ended Feb. 28, 2026, missing the Zacks Consensus Estimate of $1.60. The bottom line decreased 53% year over year.
Lindsay generated revenues of $158 million, down from $187 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $165 million.
AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Deere Earnings Surpass Estimates in Q2, Sales Increase Y/Y
Key Takeaways
Deere & Company (DE - Free Report) reported second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.
Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top-line beat the Zacks Consensus Estimate of $11.44 billion.
Total net sales and revenues (including Financial Services and other income) rose 5% year over year to $13.37 billion. Top-line growth was driven by higher shipment volumes and favorable currency translation in key segments, partly offset by softer Production & Precision Ag volumes and higher production costs.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Deere’s Profits Decline in Q2
On a consolidated basis, cost of sales increased 8.6% year over year to $8.27 billion, outpacing the 5% rise in net sales. Research and development expenses grew 6.2% to $583 million, while selling, administrative and general expenses inched up 1% to $1.21 billion.
Total operating profit decreased 3.1% year over year to $2.237 billion.
DE’s Segmental Performances in Q2
The Production & Precision Agriculture segment’s net sales declined 14% year over year to $4.50 billion due to lower shipment volumes, partially offset by favorable foreign currency translation. Segment operating profit fell 39% from the year-ago quarter to $706 million, reflecting lower shipment volumes and higher production costs, partially offset by favorable foreign currency exchange.
Small Agriculture & Turf net sales increased 16% year over year to $3.49 billion on higher shipment volumes and favorable foreign currency translation. Operating profit rose 25% year over year to $719 million, driven mainly by higher shipment volumes and favorable price realization.
Construction & Forestry net sales were $3.79 billion, up 29% year over year, primarily on higher shipment volumes and favorable foreign currency translation. Operating profit improved 48% year over year to $561 million, aided by higher shipment volumes and favorable price realization, partially offset by higher production costs.
Revenues in Deere’s Financial Services division were $1.37 billion in the quarter, down 1% year over year. The segment’s operating profit increased 21% year over year to $251 million. Net income for Financial Services climbed 18% year over year to $190 million in the fiscal second quarter.
Deere’s Q2 Cash Position
Balance sheet and cash-flow metrics were supportive. Cash and cash equivalents were $7.905 billion as of May 3, 2026, and inventories were $8.188 billion. For the first six months of fiscal 2026, net cash provided by operating activities was $1.04 billion, up from $0.57 billion in the prior-year period, reinforcing Deere’s financial flexibility through a choppier demand environment.
DE Maintains 2026 Profit View
Deere maintained its forecast for net income attributable to the company for fiscal 2026 at $4.5-$5 billion.
Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Sales of Small Agriculture & Turf are expected to rise 15%. Sales of Construction & Forestry are projected to increase 20%. The Financial Services segment’s net income is expected to be $860 million.
Deere’s Share Price Performance
Shares of the company have gained 10.3% in the past year compared with the industry’s 7.2% growth.
DE’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Look at Deere’s Peer Performances
Lindsay Corporation (LNN - Free Report) delivered earnings per share of $1.15 in second-quarter fiscal 2026 (ended Feb. 28, 2026, missing the Zacks Consensus Estimate of $1.60. The bottom line decreased 53% year over year.
Lindsay generated revenues of $158 million, down from $187 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $165 million.
AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.