Deere & Company (DE) Q2 2026 earnings summary

Executive summary

• Net sales for equipment operations reached $13.369 billion in Q2 2026, up 5% year-over-year, with net income of $1.773 billion ($6.55 per share), supported by a $272 million IEEPA tariff refund.

• Strong performance in Small Ag & Turf and Construction & Forestry segments offset softness in Production & Precision Ag.

• Entered three new unsecured credit agreements totaling $12 billion in March 2026, providing flexible, multi-currency revolving credit through 2031.

• Continued investment in innovation, technology, and major product launches, including digital solutions and See & Spray technology.

• Acquired Tenna LLC, a U.S. construction technology firm, for $439 million, assigned to the Construction & Forestry segment.

Financial highlights

• Equipment operations net sales were $11.778 billion in Q2, up from $11.171 billion year-over-year.

• Q2 net income was $1.773 billion, with diluted EPS of $6.55; Q2 operating profit was $2.237 billion.

• Financial Services Q2 net income was $190 million; full-year outlook raised to $860 million.

• Returned $635 million to shareholders via share repurchases and dividends in Q2.

• Ended Q2 with $8.135 billion in cash and equivalents.

Outlook and guidance

• Fiscal 2026 net income forecasted at $4.5–$5.0 billion; equipment operations cash flow projected at $4.5–$5.5 billion.

• Effective tax rate guided at 24%–26%; capital expenditures around $1.4 billion.

• Production & Precision Ag net sales expected to decline 15–20%; Small Ag & Turf and Construction & Forestry expected flat to up 5%.

• Financial Services net income projected at ~$860 million for fiscal 2026.

• Expect higher revenue and more favorable cost comparisons in Q4 versus Q3.