Deere & Co.

Solid Q2 performance; margins boosted by tariff refunds (but not a recurring driver) - Net sales +5% YoY to $13.369B; equipment net sales +5% to $11.778B. - Net income $1.773B ($6.55/diluted share). - Equipment operations margin 16.9%—notably helped by a one-time/temporary recovery of $272M from IEEPA tariff refund claims, boosting margins by ~2.5 points. - Core underlying theme: results largely in line with expectations outside the tariff refund lift.

Segment mix: Large Ag weak, Small Ag/Turf strong, Construction & Forestry strong—company expects this cycle divergence to persist - Production & Precision Ag: net sales -14% YoY (lower volumes; price +~1 point; FX +~3 points); operating margin 15.7%. - Small Ag & Turf: net sales +16% YoY (volume + FX); operating margin 20.6%. - Construction & Forestry: net sales +29% YoY to $3.79B; operating margin 14.8%. - Investor takeaway: Deere is benefiting from portfolio resilience as segments sit at different points of the ag/infra cycle.

Guidance / forecasts mostly unchanged: enterprise net income outlook maintained for FY2026 despite tariff uncertainty - Enterprise net income (FY2026): unchanged $4.5B–$5.0B; effective tax rate now 24%–26% (incorporated into updated outlook). - Equipment ops cash flow: still $4.5B–$5.5B. - Production & Precision Ag FY2026: net sales forecast down 5%–10%; operating margin 11%–13% (unchanged). - Small Ag & Turf FY2026: net sales up ~15%; operating margin 13.5%–15%. - Construction & Forestry FY2026: net sales up ~20%; operating margin raised to 10%–12%.