Deere & Company reported net income of $1.773 billion, or or $6.55 per share, for the second quarter as sales of its construction/forestry and small ag/turf divisions equipment rose 29% and 16%, respectively.
In its earnings report, the Moline-based manufacturer announced that the net income – for the quarter ended May 3 – compared with net income of $1.804 billion, or $6.64 per share, for the quarter ended April 27, 2025. For the first six months of the year, net income was $2.429 billion, or $8.97 per share, compared with $2.673 billion, or $9.82 per share, for the same period last year, Deere said last week. The year-over-year decline in net income was 2% and 9%, respectively.
Worldwide net sales and revenues increased 5% to $13.369 billion, for the second quarter and 8% to $22.981 billion, for six months. Net sales were $11.778 billion for the quarter and $19.779 billion for six months, compared with $11.171 billion and $17.980 billion last year, respectively.
According to The Wall Street Journal, analyst forecasts had called for $5.70 per share in earnings and $12.73 billion in revenue.
“Our performance in the current market environment demonstrates the strength of our diversified portfolio. This is particularly reflected in the strong outcomes achieved by our Small Ag and Construction & Forestry divisions during this year,” John May, John Deere’s chairman and CEO, said in the earnings release Thursday, May 21.
Ag markets under pressure
Small ag/turf net sales were $3.485 billion in the quarter and $5.653 billion for the first six months – an increase of 16% and 19%, respectively, compared to the prior periods.
Net sales of construction and forestry equipment jumped significantly to $3.790 billion in the quarter and $6.460 billion for the first six months. The results were an increase of 29% and 31%, respectively, over the same periods in 2025.
Meanwhile, the company’s saw a 14% decline in the quarter’s sales of production and precision ag equipment to $4.503 billion, and an 8% decrease in the first six months to $7.666 billion.
“As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth,” Mr. May added.
As part of the earnings report, Deere maintained its full-year net income guidance and forecastings net income to be in a range of $4.5 billion to $5.0 billion for fiscal 2026. The forecast includes an expected 20% increase in construction and forestry equipment sales – vs. an earlier estimate of 15%. Deere also expects small ag sales to grow 15% while it is projecting a 5-10% decline in production agriculture machinery sales.
“While our customers face ongoing challenges, John Deere remains firmly committed to supporting their success through disciplined operations and resilience,” Mr. May added. “By continuing to invest in innovation through the cycle and leveraging the strength of our dealer network, we are well positioned to deliver increasing value for customers and shareholders as market conditions improve.”
Tech company acquired
Deere also announced that it completed its acquisition of Tenna LLC, a U.S. construction technology company providing tracking solutions. The purchase price, net of cash acquired, was $439 million.
The company first announced a purchase agreement last December, closing the deal on Wednesday, Feb. 18. The New Hope, Pennsylvania-based Tenna will continue to operate as an independent business, marketing its products to construction customers under the Tenna tradename.
In a previous announcement, Deere said Tenna will focus on scaling and growing the business through its mixed-fleet, customer-focused business model.
Tenna offers an integrated construction technology platform designed to automate and optimize construction operation workflows. The platform gives contractors a near real-time, full-picture view of their equipment operations and a greater understanding of equipment trends and maintenance needs. The technology also improves visibility, planning, and jobsite coordination to increase productivity and reduce costs.
