Deere beats estimates as construction unit surges

Investing.com -- Deere & Company (NYSE: DE) reported second-quarter earnings that exceeded analyst expectations, driven by strong performance in its construction and small agriculture divisions, sending shares up 2.2% premarket on Thursday.

The agricultural equipment maker posted adjusted earnings per share of $6.55 for the quarter ended May 3, beating the analyst consensus of $5.70 by $0.85. Revenue reached $13.37 billion, surpassing estimates of $11.56 billion and rising 5% from $12.76 billion in the prior-year period. Net income attributable to Deere was $1.773 billion, compared with $1.804 billion a year earlier.

The earnings beat came despite a 14% decline in Production & Precision Agriculture sales to $4.50 billion, as lower shipment volumes weighed on the segment. However, Small Agriculture & Turf sales jumped 16% to $3.49 billion, while Construction & Forestry revenue surged 29% to $3.79 billion, both benefiting from higher shipment volumes and favorable price realization.

"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 a range of $4.5 billion to $5.0 billion. The company projects Production & Precision Agriculture sales to decline 5% to 10%, while Small Agriculture & Turf is expected to rise approximately 15% and Construction & Forestry to increase roughly 20%.

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