John Deere Financial’s net income increased in Deere & Co.’s fiscal second quarter as favorable financing spreads and derivative valuation adjustments offset a lower average portfolio.
The captive lender generated net income of $190 million in the quarter ended May 3, up 18% year over year from $161 million, according to Deere’s earnings release today. Financial Services revenue fell 1.4% YoY to $1.4 billion.
Across the company, Deere reported net income of $1.8 billion, down 1.7% YoY, while worldwide net sales and revenue increased 4.7% YoY to $13.3 billion, according to the release. Deere maintained its fiscal 2026 net income guidance of $4.5 billion to $5 billion.
By the numbers
John Deere Financial’s earnings improved in Q2 despite lower revenue. It reported:
Revenue of $1.4 billion, down 1.4% YoY;
Operating profit of $251 million, up 21.3% YoY;
Deere & Co. first-half revenue was $2.8 billion, down 3.7% YoY;
Deere & Co. first-half net income was $434 million, up 11% YoY; and
Deere & Co. fiscal 2026 net income is expected to be about $860 million.
Deere’s equipment operations were mixed, with Production and Precision Ag under pressure from lower shipment volumes and higher production costs, according to the release. Q2 Production and Precision Ag net sales fell 13.9% YoY to $4.5 billion, while Small Ag and Turf sales rose 16.4% YoY to $3.5 billion and Construction and Forestry sales increased 28.6% YoY to $3.8 billion.
Shares of Deere & Co. [Nasdaq: DE] were trading at $531.35 at market close today, down 5.2% or $29.11 from market open. Deere has a market capitalization of $143.5 billion.
