Deere & Company (DE) Beats Q2 Estimates and Holds Full-Year Guidance
Key Takeaways
- Deere & Company reported net income of $1.773 billion, or $6.55 per share, for the second quarter ended May 3, 2026, beating consensus estimates of $5.70 per share.
- Worldwide net sales and revenues rose 5% year-over-year to $13.369 billion, with equipment operations net sales up 5% to $11.778 billion.
- Net income for the first half of fiscal 2026 totaled $2.429 billion, or $8.97 per share, compared with $2.673 billion, or $9.82 per share, in the prior-year period.
- The company maintained its full-year fiscal 2026 net income guidance of $4.5 billion to $5.0 billion.
- Strong performance in Small Ag & Turf and Construction & Forestry segments helped offset softness in large agricultural equipment.
- Management highlighted portfolio diversification, dealer network strength, and ongoing investments in innovation as key supports for long-term growth.
Placing the Results in Context
Deere & Company operates on a fiscal year ending in late October, with quarters aligned to agricultural and construction cycles rather than calendar quarters. The second quarter fiscal 2026 results, covering the period ended May 3, 2026, arrive amid ongoing pressure in global agricultural markets from lower farm incomes and commodity price volatility. I find it useful to monitor these reports closely for signals on equipment demand, margin trends, and management’s ability to navigate cyclical downturns through diversification into construction, turf, and precision technology. Strong execution here can influence sentiment toward the broader industrials sector and DE’s ability to sustain market share gains.
Breaking Down the Reported Numbers
Deere & Company delivered second quarter fiscal 2026 net income of $1.773 billion ($6.55 per diluted share), compared with $1.804 billion ($6.64 per share) in the year-ago quarter. Worldwide net sales and revenues increased 5% to $13.369 billion. Equipment operations net sales rose 5% to $11.778 billion. For the first six months, net income reached $2.429 billion ($8.97 per share). The company beat consensus EPS expectations of $5.70 by a wide margin. Management maintained full-year fiscal 2026 net income guidance in the $4.5 billion to $5.0 billion range, citing resilience from a diversified portfolio despite challenges in large agricultural equipment. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Viewed the Update
Shares of DE typically experience heightened volatility around earnings releases as investors digest demand signals from key segments. The second quarter fiscal 2026 beat on earnings and maintained guidance provided a positive surprise relative to concerns over agricultural softness. Market participants focused on the strength in construction and small agriculture businesses, which helped offset larger equipment weakness and reinforced confidence in the company’s diversified model. Sentiment heading into the report reflected cautious optimism tied to infrastructure spending and dealer inventory management.
What I’m Watching Going Forward
Deere & Company’s maintained full-year guidance underscores management’s view that diversification across segments and geographies provides a buffer against agricultural market cycles. Investors will watch for updates on large agricultural equipment order books and retail sales trends, which remain sensitive to farm income, commodity prices, and biofuel demand.
Continued strength in construction equipment, supported by infrastructure spending and rental fleet replacement, represents a key growth area. Small Ag & Turf performance will also merit attention as turf markets recover and livestock sectors show healthy cash flows.
Management emphasized ongoing investments in new products, precision technology, and the dealer network as drivers of long-term value. Cost discipline, supply chain stability, and any updates on tariff or trade policy impacts could influence margins in coming quarters. The company’s ability to expand market share while navigating industry headwinds will remain central to performance through the rest of fiscal 2026.
Refining My Research Process with Tickeron Tools
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DE sees MACD Histogram just turned negative
DE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 25, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In 29 of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 66%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for DE moved out of overbought territory on September 24, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 19 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Momentum Indicator moved below the 0 level on October 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DE as a result. In 49 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
DE broke above its upper Bollinger Band on September 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 43 of 64 cases where DE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
Following a +3.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in 199 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
The Aroon Indicator entered an Uptrend today. In 124 of 210 cases where DE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. DE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 49 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DE's P/B Ratio (6.645) is slightly higher than the industry average of (2.582). P/E Ratio (38.332) is within average values for comparable stocks, (34.809). Projected Growth (PEG Ratio) (1.600) is also within normal values, averaging (1.745). Dividend Yield (0.009) settles around the average of (0.009) among similar stocks. DE's P/S Ratio (3.868) is very high in comparison to the industry average of (1.128).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
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