Overview

• U.S. farm equipment maker's Q2 Worldwide net sales and revenues up 5%, beating analyst expectations

• Q2 EPS beat analyst expectations

• Company maintained fiscal 2026 net income guidance amid market volatility

Outlook

• Deere forecasts fiscal 2026 net income between $4.5 bln and $5.0 bln

• Company maintains net income guidance amid market volatility

• Deere expects continued investment in innovation to support long-term growth

Result Drivers

• SMALL AG & TURF GROWTH - Higher shipment volumes and favorable price realization drove increased sales and operating profit in Small Agriculture & Turf division

• CONSTRUCTION & FORESTRY EXPANSION - Higher shipment volumes and favorable price realization led to increased sales and operating profit in Construction & Forestry division

• PRODUCTION & PRECISION AGRICULTURE DECLINE - Lower shipment volumes and higher production costs drove declines in sales and operating profit in Production & Precision Agriculture division

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Deere & Co is $640.50, about 14.3% above its May 20 closing price of $560.46

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 30 three months ago

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