Equity Snap: Deere & Co (DE US) 2QFY26 results: in line excluding tariff refunds

Research evidence excerpt

Equity Snap: Deere & Co (DE US) 2QFY26 results: in line excluding tariff refunds

21 May 2026

Equity Snap: Deere & Co (DE US) Equities Machinery

2QFY26 results: in line excluding tariff refunds United States

◆ 2Q aided by IEEPA tariff refund; Large Ag results remain Wesley Brooks, CFA

subdued, with declining volumes Senior Analyst, Industrials and Autos HSBC Securities (USA) Inc.

wesley.brooks@us.hsbc.com

◆ FY26 guidance unchanged; outlook for Large Ag still down +1 212 525 0337

c5-10% but Construction and Forestry raised to up c20% Laisha Zaack*

Analyst, Industrials and Autos

HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo

Financiero HSBC

Deere & Co (DE US, USD560.46, Hold, TP USD590.00) laisha.zaack@hsbc.com.mx

(Priced as of 20 May 2026) +52 55 8551 3796

2Q in line: Sales grew 5% y-o-y to USD13.4bn, 2% ahead of Visible Alpha * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

consensus and in line with our estimate, mainly due to volume recovery in Small Ag not registered/ qualified pursuant to FINRA regulations

and Construction and Forestry. Segment operating profit declined 15% y-o-y to

cUSD1.97bn after adjusting for a USD272m IEEPA tariff refund, in line with

consensus and 3% above HSBCe due to a big decline in Large Ag. EPS declined

13% y-o-y to USD5.75 excluding the tariff refund impact on HSBCe and beat

consensus by 1% and our estimate by 4%. EPS was USD6.55 including the tariff

refund. Note that segment figures include the impact of tariff refunds.

 Large Ag revenue declined 14% y-o-y and was 2% below consensus as

volumes fell c8% y-o-y. Operating profit of USD706m declined c39% and

was c2% below consensus due to the lower shipment volumes and higher

production costs.

 Small Ag revenue increased 47% y-o-y and was 29% ahead consensus