DE US S&P 500Russell 1000 Earnings call
Deere & Company (DE) · Q2 2026 results and valuation
Share price: $691.75 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 20 Aug 2026 and 21 May 2026
Net income down 22.2% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−22.2%
Net income vs Q1 2026
Outlook given
Net income 1.38B vs 1.77B
Revenue −5.7%
Against the same quarter last year (Q2 2025) it is +7.0%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
Less upbeat than 59% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Deere & Company now expects the industry outlook to be down 15 to 20%.
Valuation
Is Deere & Company undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-11-02), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −4.6% growth a year (3-year revenue growth), the model's fair value is $77.45 a share — the stock trades 793% above it. Today's price assumes 25.6% growth a year.
Current price
$691.75
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+25.6% for 10 yrs
Fair value / share
$77.45
Buy below
$58.09
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +20% · from the Q2 2026 report: “Sales target held at roughly 20% growth, while full-year margin outlook narrowed to 10.5%–11.5%.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Sales target held at roughly 20% growth, while full-year margin outlook narrowed to 10.5%–11.5%.
Source quote
“For C&F, we maintained our sales guidance of approximately 20% year over year growth and we narrowed our full year margin guidance to between 10.5 to 11.5%, reflecting...”
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Guidance
European industry sales are now expected to be roughly flat for the full year.
Source quote
“Shifting to Europe, we now expect industry sales to be approximately flat for the year.”
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Dropped
Harvest automation is no longer a focus area, though underlying utilization remains strong.
Source quote
“Harvest settings automation, which you didn't ask about, but I just did want to mention utilization there has continued to be very strong. Maybe one last point on technology. Last quarter, we talked about over 60% utilization of harvest automation in the sort of the Northern Hemisphere harvest.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As a result, they continue to invest selectively in productivity enhancing equipment and solutions, that improve operating efficiency and support long term profitability.”
“Christopher highlighted the strong growth opportunity we are seeing in both our precision construction technologies and construction portfolio.”
“Customer profitability has improved modestly, aided by improved year over year commodity prices, moderation in certain input costs, and favorable livestock fundamentals within mixed farms.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-08-02)
| Metric | Q2 2026period end 2026-08-02 | Q1 2026period end 2026-05-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 12.61B | 13.37B | −5.7% | 12.02B | +4.9% |
| Net income | 1.38B | 1.77B | −22.2% | 1.29B | +7.0% |
| EPS | 5.10 | 6.55 | −22.1% | 4.75 | +7.4% |
| P/E today 37.9 | 32.9 | 32.7 | +0.2 | 27.0 | +5.9 |
Topics
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Latest announcements
Official filings, newest first.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K