DE
FY2026 Q2 · Calendar Q2 2026
Deere & Company
Deere's Q2 results reveal a two-speed company. Construction & Forestry and Small Ag & Turf are thriving on infrastructure spending, data-center demand, and replacement cycles, while large agriculture remains pressured by input costs and geopolitical headwinds. A one-time $272M IEEPA tariff refund lifted equipment margin to 16.9% but is not repeatable, meaning underlying margin quality is narrower than the headline suggests. Management maintained the overall FY26 net income outlook and raised C&F sales guidance by roughly 20%, a more conservative posture than Q1 when guidance was raised across two segments. The stock sold off 5.2% on the report despite the EPS beat, likely reflecting the step-down from raise to maintain and the non-recurring nature of the tariff refund. A subsequent 12.7% drift higher suggests the market re-evaluated the construction and precision-ag growth story. With…
EPS surprise+14.9%
Market move-5.2%
