Deere & Company reported second quarter fiscal 2026 net sales and revenues of $13.37 billion, a 5% increase year-over-year, and diluted EPS of $6.55. These results significantly beat analyst estimates, driven by a divergence in segmental performance where strength in Construction and Small Ag offset the cyclical downturn in the core large agriculture business.
Key Highlights
- Production & Precision Agriculture net sales declined 14% to $4.5 billion, with operating profit falling 39% to $706 million due to lower shipment volumes.
- Construction & Forestry was a key driver of the beat, with net sales surging 29% to $3.8 billion and operating profit increasing 48% on higher volumes and price realization.
- Small Agriculture & Turf also showed robust growth, with net sales up 16% to $3.5 billion and operating profit up 25%.
- The company maintained its full-year 2026 net income forecast in a range of $4.5 billion to $5.0 billion, signaling confidence despite market volatility.