Deere’s Q2 results were well received by the market, reflecting better-than-expected execution across its diversified equipment portfolio. Management attributed the positive outcome to strong operational performance, disciplined cost control, and steady demand in construction and turf. CFO Brent Norwood stated, “Our factories performed exceptionally well and exceeded expectations on production output, combined with disciplined execution across the business and favorable price realization.” While agriculture end markets faced mixed conditions, momentum in construction and improved inventory management contributed to the quarter’s outperformance.
Is now the time to buy DE? Find out in our full research report (it’s free for active Edge members).
Deere (DE) Q2 CY2026 Highlights:
- Revenue: $12.61 billion vs analyst estimates of $12.43 billion (4.9% year-on-year growth, 1.4% beat)
- Adjusted EPS: $5.10 vs analyst estimates of $4.68 (9% beat)
- Operating Margin: 15.3%, up from 13% in the same quarter last year
- Market Capitalization: $170.2 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Deere’s Q2 Earnings Call
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Jamie Cook (Truist Securities) asked about early order program pricing and the ability to cover inflation. President Deanna Kovar said pricing remains focused on offsetting inflationary pressures, and early order program results are up mid-single digits year over year.
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Tami Zakaria (JPMorgan) pressed for clarity on tariff impacts. CFO Christopher Seibert explained that lower tariff expense resulted from policy changes, but next year will see higher direct tariff costs as refunds decline.
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Kristen Owen (Oppenheimer) inquired about inventory build and retail cadence. Seibert said shipment plans remain consistent, with some demand pulled forward for risk management, while Kovar noted retail activity is on pace with expectations.
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Tim Thein (Raymond James) questioned the contribution of technology mix to margins in 2027. Seibert responded that technology adoption signals are encouraging, but uncertainty in global agriculture makes it too early to quantify mix impact.
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Angel Castillo (Morgan Stanley) sought details on pricing incentives and right-to-repair implications. Seibert described a measured approach to incentives, while Norwood said Deere’s agreement formalizes customer access to diagnostic and repair tools.
Catalysts in Upcoming Quarters
In the coming quarters, our team will watch (1) the pace of technology adoption in both agriculture and construction equipment, (2) execution on construction backlog and rental fleet expansion, and (3) stabilization of agricultural margins and demand, particularly in South America and Europe. Changes in tariff policies and the rollout of AI-enabled digital tools will also be key markers of Deere’s strategy execution.
Deere currently trades at $637.27, up from $580.63 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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