Deere & Company Q2 Earnings Call Highlights

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MarketBeat

Thu, May 21, 2026 astatine 11:11 AM CDT 6 min read

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Deere & Company (NYSE:DE) reported higher second-quarter income and maintained its full-year nett outlook, arsenic spot successful operation instrumentality and Small Ag & Turf helped offset continued weakness successful ample agriculture markets.

On the company’s net call, Director of Investor Relations Chris Seibert said Deere delivered year-over-year nett income maturation of 5% and an instrumentality operations borderline of 16.9%, reflecting “solid execution and a strong, diversified portfolio of businesses spanning aggregate industries and geographies.”

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For the quarter, Deere reported nett income and revenues of $13.369 billion, up 5% from the anterior year. Equipment operations nett income roseate 5% to $11.778 billion. Net income attributable to Deere & Company was $1.773 billion, oregon $6.55 per diluted share.

The institution maintained its fiscal 2026 nett income forecast of $4.5 cardinal to $5 billion. Deere besides continues to expect instrumentality operations currency travel of $4.5 cardinal to $5.5 billion. Its effectual taxation complaint guidance is present 24% to 26%.

Tariff Refunds Boost Quarterly Margins

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A notable point successful the 4th was a $272 cardinal betterment tied to refund claims related to IEPA tariffs. Josh Beal, Deere’s manager of capitalist relations, said the refund benefited accumulation costs and lifted margins by astir 2.5 percent points successful the quarter.

Beal said Deere’s nonstop tariff vulnerability remains astir $1.2 cardinal connected a full-year basis, oregon astir a 3 percent constituent borderline headwind. Net of the refunds, the company’s forecast includes astir $900 cardinal of tariff costs for the year.

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Chief Financial Officer Brent Norwood said Deere has not introduced tariff surcharges for customers and is alternatively focused connected mitigation efforts including resourcing, reshoring, exemption submissions and USMCA compliance. Norwood said Deere’s implied nett terms realization for instrumentality operations is betwixt 1.5% and 2% for the year, successful enactment with wide ostentation excluding tariffs.

Norwood besides highlighted Deere’s home manufacturing footprint, saying astir 80% of John Deere’s U.S. implicit goods income are produced astatine U.S. facilities, and astir 75% of components utilized astatine those facilities are sourced from U.S.-based suppliers.

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