Deere & Company (NYSE:DE) reported second-quarter earnings ahead of analyst expectations, supported by strong momentum in its construction and small agriculture businesses, sending shares up 2.2% in premarket trading on Thursday.
The machinery manufacturer posted adjusted earnings per share of US$6.55 for the quarter ended May 3, exceeding analyst forecasts of US$5.70 by US$0.85.
Quarterly revenue reached US$13.37 billion, comfortably above estimates of US$11.56 billion and up 5% from US$12.76 billion in the same period last year.
Net income attributable to Deere totaled US$1.773 billion, slightly below the US$1.804 billion recorded a year earlier.
The stronger-than-expected performance came despite weakness in the company’s Production & Precision Agriculture division, where sales declined 14% year-on-year to US$4.50 billion due to lower shipment volumes.
However, Deere’s Small Agriculture & Turf segment delivered a strong performance, with revenue rising 16% to US$3.49 billion.
Meanwhile, revenue from the Construction & Forestry division surged 29% to US$3.79 billion, benefiting from higher shipment volumes and improved pricing.
“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,” stated John May, chairman and CEO.
For fiscal 2026, Deere maintained its net income guidance in the range of US$4.5 billion to US$5.0 billion.
The company expects sales in its Production & Precision Agriculture division to decline between 5% and 10%, while Small Agriculture & Turf revenue is projected to increase by approximately 15%.
Construction & Forestry sales are forecast to rise by roughly 20% during the fiscal year.