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.
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DE's RSI Indicator ascending out of oversold territory
The RSI Oscillator for DE moved out of oversold territory on May 28, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 02, 2026. You may want to consider a long position or call options on DE as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DE just turned positive on June 02, 2026. Looking at past instances where DE's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
DE moved above its 50-day moving average on June 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
DE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for DE crossed bearishly below the 50-day moving average on May 15, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DE entered a downward trend on June 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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: P/B Ratio (5.650) is normal, around the industry mean (2.844). P/E Ratio (32.502) is within average values for comparable stocks, (42.209). Projected Growth (PEG Ratio) (1.746) is also within normal values, averaging (1.843). Dividend Yield (0.011) settles around the average of (0.015) among similar stocks. P/S Ratio (3.358) is also within normal values, averaging (2.280).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron SMR rating for this company is (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 Price Growth Rating for this company is (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.
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General Information
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
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