Deere reports Q2 earnings beat but warns of higher fertilizer costs and weak ag demand.

Deere & Company beat Q2 earnings estimates with EPS of $6.55 and revenue of $13.369 billion, driven by strong Small Ag and Construction & Forestry sales. However, Production & Precision Agriculture sales fell 14%, pressured by lower shipments and rising costs, including higher fertilizer prices linked to the Iran conflict. The company maintained its fiscal 2026 net income forecast of $4.5 to $5 billion but expects declines in large agriculture markets due to weak farmer sentiment and inflationary pressures. Deere also noted robust construction equipment demand supported by infrastructure spending.