US agricultural and construction machinery manufacturer Deere & Co. ‘s fiscal 2026 second quarter net income fell 2% despite revenue growth, with earnings per share and revenue beating market expectations.
The company said in a press release that its net income for the three months ended May 3 was $1.77 billion, or $6.55 per share, compared with $1.8 billion, or $6.64 per share, for the comparable period a year earlier.
Revenue rose 5% to $13.37 billion.
Analysts surveyed by FactSet on average had forecast earnings of $5.7 per share on revenue of $12.73 billion.
Sales of Deere’s large agricultural equipment division fell 14% (to $4.5bn) last quarter. Revenues in the small farm and turf equipment division rose 16% (to $3.49bn), while forestry and construction equipment grew 29% (to $3.79bn).
Deere reaffirmed its outlook for the current fiscal year and still estimates net income of $4.5-5bn.
Revenues in the large equipment segment are also forecast to fall 5-10%, while revenues in the small equipment division are forecast to grow about 15%. The forecast for the forestry and construction equipment segment was improved: its revenue is now expected to increase by about 20%, while the previous forecast provided for an increase of 15%.
Deere share prices are down 3.8% in previous trading on Thursday. Over the past three months, the company’s capitalisation has fallen by 15.3% (to $150.7bn), while the Standard & Poor’s 500 stock index has risen by 8% over the period.