Deere Q2: Sales +8% YTD, but PPA segment weak; FTC antitrust suit advances

Filed May 28, 2026 · Period ending May 3, 2026 · ~2 min read

Key Changes

• high

  FTC and six state AGs filed antitrust lawsuit alleging Deere monopolizes equipment repair by restricting access to tools and resources. Court denied Deere's motion to dismiss; settlement talks ongoing. Outcome could reshape aftermarket service model and dealer relationships.

  Legal Proceedings verify on EDGAR →
• high

  Net sales grew 8% YTD but net income fell 9% as Production & Precision Agriculture volumes dropped 8% (North America and Brazil weakness). Operating margin in PPA compressed from 17.9% to 11.0% on volume deleverage and higher material costs.

  MD&A: Segment Performance verify on EDGAR →
• high

  Tariff costs hit $372M in H1 2026 (vs $95M prior year), but Deere recorded $272M recovery after Supreme Court invalidated certain IEEPA tariffs and CBP accepted refund claim. Net tariff headwind remains $100M; trade policy uncertainty persists.

  MD&A: Tariffs verify on EDGAR →