Key Takeaways
- Deere & Company (NYSE: DE) reported Q2 2026 net income of $1.773 billion, or $6.55 per diluted share, compared to $1.804 billion and $6.64 per share in Q2 2025.
- Worldwide net sales and revenues rose 5% year-over-year to $13.369 billion for the quarter, and 8% to $22.981 billion for the first six months of fiscal 2026.
- Production & Precision Agriculture net sales fell 14% to $4.503 billion and operating profit dropped 39% to $706 million on lower shipment volumes.
- Small Agriculture & Turf and Construction & Forestry posted strong gains, with operating profits up 25% and 48% respectively on higher volumes and favorable price realization.
- John Deere reaffirmed its fiscal 2026 net income outlook of $4.5 billion to $5.0 billion.
John Deere Posts Mixed Q2 2026 Results Amid Large Ag Headwinds
Deere & Company (NYSE:DE) reported second-quarter fiscal 2026 net income of $1.773 billion, or $6.55 per diluted share, a modest decline from $1.804 billion and $6.64 per share in the same quarter of 2025. Total worldwide net sales and revenues for the quarter rose 5% to $13.369 billion, supported by strong performances in the company's Small Ag & Turf and Construction & Forestry divisions that partially counterbalanced continued softness in large agricultural equipment markets.
Segment Performance: Winners and Laggards
Production & Precision Agriculture, John Deere's largest segment, saw net sales decline 14% to $4.503 billion, with operating profit falling 39% to $706 million and operating margin contracting from 22.0% to 15.7%. Lower shipment volumes and higher production costs were the primary drivers, partly offset by favorable foreign currency translation.
By contrast, Small Agriculture & Turf net sales grew 16% to $3.485 billion, with operating profit climbing 25% to $719 million and margin expanding to 20.6% from 19.2%. Construction & Forestry delivered the strongest relative performance, with net sales up 29% to $3.790 billion and operating profit surging 48% to $561 million. Financial Services net income rose 18% to $190 million, driven by favorable financing spreads and derivative valuation adjustments.
Deere & Company CEO Comments on Portfolio Strength
“Our performance in the current market environment demonstrates the strength of our diversified portfolio. This is particularly reflected in the strong outcomes achieved by our Small Ag and Construction & Forestry divisions during this year. As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth,” said John May, Chairman and CEO of John Deere.
John Deere Outlook for Fiscal 2026
The company maintained its fiscal 2026 net income forecast in the range of $4.5 billion to $5.0 billion. For the full year, John Deere expects Production & Precision Agriculture net sales to be down 5 to 10%, Small Ag & Turf up approximately 15%, and Construction & Forestry up approximately 20%. On the industry side, U.S. and Canadian large ag equipment demand is projected down 15 to 20%, while small ag and turf is expected to be flat to up 5%. Construction equipment in the U.S. and Canada is forecast up approximately 5%.
The quarter also included a $272 million recovery related to refund claims for tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), following a U.S. Supreme Court decision in February 2026 invalidating those tariffs.
“While our customers face ongoing challenges, John Deere remains firmly committed to supporting their success through disciplined operations and resilience. By continuing to invest in innovation through the cycle and leveraging the strength of our dealer network, we are well positioned to deliver increasing value for customers and shareholders as market conditions improve,” said May.
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