Deere & Company (DE) Q2 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: SeekingAlpha
Revenue Deere's second quarter revenue increased by 12% year-over-year, driven by strong demand in the agriculture and construction sectors.
Net Income Net income for the quarter was $2.35 billion, up 15% from the previous year, attributed to improved operational efficiencies and favorable market conditions.
Operating Margin Operating margin improved to 18.5%, a 2% increase year-over-year, due to cost management initiatives and higher sales volumes.
Cash Flow from Operations Cash flow from operations reached $1.8 billion, a 10% increase compared to the same period last year, supported by better working capital management.
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Analyst Views on DE
Wall Street analysts forecast DE stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 539.000
Low
458.00
Averages
514.25
High
560.00
Current: 539.000
Low
458.00
Averages
514.25
High
560.00
About DE
Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment defines, develops and delivers global equipment and technology solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment defines, develops and delivers global equipment and technology solutions for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. CF segment defines, develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry and roadbuilding production systems. FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment and others. Its products include John Deere Autonomous 8R Tractor and E-Power Backhoe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Deere Declares Quarterly Dividend of $1.62 per Share
- Quarterly Dividend Announcement: Deere & Company has declared a quarterly dividend of $1.62 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.23% reflects the company's competitiveness in the current market environment, potentially boosting shareholder confidence and enhancing stock performance.
- Shareholder Record Date: The dividend will be payable on August 10, with a record date of June 30 and an ex-dividend date also on June 30, ensuring eligible shareholders receive their dividends promptly, thereby strengthening the shareholder base.
- Future Earnings Outlook: Deere forecasts net income for FY2026 to be between $4.5 billion and $5 billion, while raising its construction and forestry sales outlook by approximately 20%, demonstrating the company's robust performance and growth potential amid market recovery.
See More
Multiple Companies Declare Quarterly Dividends
- Deere Dividend: Deere's Board of Directors declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, to shareholders of record as of June 30, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- SM Energy Dividend: SM Energy's Board approved a cash dividend of $0.22 per share, to be paid on June 22, 2026, to shareholders of record as of June 8, 2026, reflecting the company's efforts in maintaining stable cash flow.
- Terex Dividend: Terex announced a quarterly dividend of $0.17 per share, payable on June 22, 2026, to shareholders of record as of June 8, 2026, indicating the company's financial stability in the current market environment.
- Bank of Montreal Dividend: Bank of Montreal's Board declared a quarterly dividend of $1.71 per share, a 4-cent increase from the previous quarter and a 5% increase from the prior year, showcasing the company's proactive measures in enhancing shareholder returns.
See More
Deere & Company Declares Quarterly Dividend
- Quarterly Dividend Declaration: Deere & Company's Board of Directors has declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is set for June 30, 2026, ensuring that investors holding shares before this date will receive the payout, thereby enhancing investor confidence.
- Financial Stability Demonstrated: By consistently paying dividends, Deere showcases its strong cash flow and financial health, indicating resilience and stability in the current economic environment.
- Enhanced Shareholder Value: The announcement of this dividend not only provides direct cash returns to shareholders but may also attract more investor interest, increasing the market appeal and long-term value of the company's stock.
See More
Deere & Company Declares Quarterly Dividend
- Quarterly Dividend Announcement: Deere & Company's Board of Directors declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The dividend payment will be made to shareholders of record as of June 30, 2026, ensuring timely cash inflow and bolstering investor confidence.
- Sustained Profitability: This dividend declaration reflects Deere's robust financial health in the current economic environment, indicating strong performance in the agricultural and construction equipment markets.
- Investor Appeal: By maintaining a stable dividend payout, Deere not only enhances its attractiveness to existing shareholders but may also draw in more investors seeking reliable returns, further improving the stock's market performance.
See More
Investment Opportunities in Blue Chip Stocks
- Lockheed Martin's Market Position: As the world's largest defense manufacturer, Lockheed Martin (LMT) has secured a multi-year agreement with the U.S. Department of Defense to triple and quadruple missile production amid ongoing conflicts in the Middle East, ensuring future revenue growth and market demand.
- Strong Financial Performance: Although Lockheed Martin's backlog slightly decreased from the previous quarter, it remains healthy at $186 billion, and is expected to benefit from continued high defense spending by the U.S. government, with analysts projecting an 18% average annual earnings growth over the next few years.
- Deere's Market Challenges: Deere & Co (DE), a titan in agricultural machinery, currently faces challenges due to declining farmer incomes and rising financing costs, although its forestry and construction segments are relatively resilient, the weakness in agriculture has impacted overall financial performance.
- Future Growth Potential: Analysts expect Deere to achieve over 15% average annual earnings growth in the next three to five years, and the adoption of intelligent machinery in the AI era presents new growth opportunities, making it a blue chip stock worth investing in during the current market downturn.
See More
Investment Opportunities in Lockheed Martin and Deere & Company
- Lockheed Martin's Strong Backlog: Although Lockheed Martin's backlog slightly decreased from the previous quarter, it remains robust at $186 billion as of Q1 2026, indicating sustained demand for defense spending, particularly in light of the ongoing Middle East conflict, which is expected to further boost order growth.
- Earnings Growth Outlook: Analysts project that Lockheed Martin will achieve an average annual earnings growth of 18% over the next three to five years, which should translate into capital gains and healthy dividend increases, with the current stock trading at an attractive valuation of under 18 times 2026 earnings estimates.
- Deere's Market Volatility: While Deere's agricultural segment is under pressure due to farmers facing lower commodity prices and higher costs, its resilience in the forestry and construction sectors provides a stable revenue stream, with analysts forecasting earnings growth of over 15% annually in the next three to five years.
- Cyclical Investment Opportunities: Buying cyclical stocks during industry downturns is often a smart strategy; Deere's current P/E ratio stands at 29 times, which may seem high, but considering future growth potential, investors can find opportunities amidst current market volatility.
See More
Deere Declares Quarterly Dividend of $1.62 per Share
- Quarterly Dividend Announcement: Deere & Company has declared a quarterly dividend of $1.62 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.23% reflects the company's competitiveness in the current market environment, potentially boosting shareholder confidence and enhancing stock performance.
- Shareholder Record Date: The dividend will be payable on August 10, with a record date of June 30 and an ex-dividend date also on June 30, ensuring eligible shareholders receive their dividends promptly, thereby strengthening the shareholder base.
- Future Earnings Outlook: Deere forecasts net income for FY2026 to be between $4.5 billion and $5 billion, while raising its construction and forestry sales outlook by approximately 20%, demonstrating the company's robust performance and growth potential amid market recovery.
See More
Multiple Companies Declare Quarterly Dividends
- Deere Dividend: Deere's Board of Directors declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, to shareholders of record as of June 30, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- SM Energy Dividend: SM Energy's Board approved a cash dividend of $0.22 per share, to be paid on June 22, 2026, to shareholders of record as of June 8, 2026, reflecting the company's efforts in maintaining stable cash flow.
- Terex Dividend: Terex announced a quarterly dividend of $0.17 per share, payable on June 22, 2026, to shareholders of record as of June 8, 2026, indicating the company's financial stability in the current market environment.
- Bank of Montreal Dividend: Bank of Montreal's Board declared a quarterly dividend of $1.71 per share, a 4-cent increase from the previous quarter and a 5% increase from the prior year, showcasing the company's proactive measures in enhancing shareholder returns.
See More
Deere & Company Declares Quarterly Dividend
- Quarterly Dividend Declaration: Deere & Company's Board of Directors has declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is set for June 30, 2026, ensuring that investors holding shares before this date will receive the payout, thereby enhancing investor confidence.
- Financial Stability Demonstrated: By consistently paying dividends, Deere showcases its strong cash flow and financial health, indicating resilience and stability in the current economic environment.
- Enhanced Shareholder Value: The announcement of this dividend not only provides direct cash returns to shareholders but may also attract more investor interest, increasing the market appeal and long-term value of the company's stock.
See More
Deere & Company Declares Quarterly Dividend
- Quarterly Dividend Announcement: Deere & Company's Board of Directors declared a quarterly dividend of $1.62 per share, payable on August 10, 2026, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The dividend payment will be made to shareholders of record as of June 30, 2026, ensuring timely cash inflow and bolstering investor confidence.
- Sustained Profitability: This dividend declaration reflects Deere's robust financial health in the current economic environment, indicating strong performance in the agricultural and construction equipment markets.
- Investor Appeal: By maintaining a stable dividend payout, Deere not only enhances its attractiveness to existing shareholders but may also draw in more investors seeking reliable returns, further improving the stock's market performance.
See More
Investment Opportunities in Blue Chip Stocks
- Lockheed Martin's Market Position: As the world's largest defense manufacturer, Lockheed Martin (LMT) has secured a multi-year agreement with the U.S. Department of Defense to triple and quadruple missile production amid ongoing conflicts in the Middle East, ensuring future revenue growth and market demand.
- Strong Financial Performance: Although Lockheed Martin's backlog slightly decreased from the previous quarter, it remains healthy at $186 billion, and is expected to benefit from continued high defense spending by the U.S. government, with analysts projecting an 18% average annual earnings growth over the next few years.
- Deere's Market Challenges: Deere & Co (DE), a titan in agricultural machinery, currently faces challenges due to declining farmer incomes and rising financing costs, although its forestry and construction segments are relatively resilient, the weakness in agriculture has impacted overall financial performance.
- Future Growth Potential: Analysts expect Deere to achieve over 15% average annual earnings growth in the next three to five years, and the adoption of intelligent machinery in the AI era presents new growth opportunities, making it a blue chip stock worth investing in during the current market downturn.
See More
Investment Opportunities in Lockheed Martin and Deere & Company
- Lockheed Martin's Strong Backlog: Although Lockheed Martin's backlog slightly decreased from the previous quarter, it remains robust at $186 billion as of Q1 2026, indicating sustained demand for defense spending, particularly in light of the ongoing Middle East conflict, which is expected to further boost order growth.
- Earnings Growth Outlook: Analysts project that Lockheed Martin will achieve an average annual earnings growth of 18% over the next three to five years, which should translate into capital gains and healthy dividend increases, with the current stock trading at an attractive valuation of under 18 times 2026 earnings estimates.
- Deere's Market Volatility: While Deere's agricultural segment is under pressure due to farmers facing lower commodity prices and higher costs, its resilience in the forestry and construction sectors provides a stable revenue stream, with analysts forecasting earnings growth of over 15% annually in the next three to five years.
- Cyclical Investment Opportunities: Buying cyclical stocks during industry downturns is often a smart strategy; Deere's current P/E ratio stands at 29 times, which may seem high, but considering future growth potential, investors can find opportunities amidst current market volatility.
See More
