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Stocks•18 May 2026•

1 min read

Deere Earnings Expected to Drop 12.5% as Farm Spending Weakens

Key Facts

1DE earnings are expected to fall 12.5% year-over-year in its Q2 results.

2The company's outlook is pressured by weak farm spending and rising costs.

Deere & Company (DE) is preparing to report its Q2 financial results, with analysts forecasting a 12.5% year-over-year decline in earnings. According to reports, the company's forward outlook is under pressure due to weakening farm spending and rising operating costs. While revenues may show resilience, persistent inflationary pressures continue to weigh on profit margins.

This anticipated decline aligns with broader sector trends where heavy equipment peers like Caterpillar (CAT) have noted slowing machinery sales in recent quarters per market data. Industry reports suggest that lower commodity prices have reduced farmer purchasing power, leading analysts to temper expectations for agricultural-linked industrial manufacturers.

Traders are monitoring DE stock, which stood at $405.20 (at close May 15, 2026), for signals regarding demand sustainability in the second half of the year. Key catalysts include the World Agricultural Supply and Demand Estimates (WASDE) report on May 12, 2026, which may provide critical insights into global farm spending trends and their impact on Deere’s order book.