John Deere reported a positive quarter of revenue growth in Q2 despite economic difficulties impacting its customers.

Deere cited tariffs and fuel prices as challenges facing the agriculture sector, despite a $272 million refund of tariff costs in the quarter.

In its fiscal Q2 ended May 3, 2026, Deere said worldwide net revenue grew 5% year over year to $13.37 billion. For the first half of the fiscal year, net revenue grew 8% to $22.98 billion.

“Our performance in the current market environment demonstrates the strength of our diversified portfolio. This is particularly reflected in the strong outcomes achieved by our Small Ag and Construction & Forestry divisions during this year,” Deere chairman and chief executive officer John May said in a written statement. “As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth.”

John Deere digital results in Q2

Deere executives highlighted continued growth in the company’s digital business, with 440,000 monthly active users on the John Deere Operations Center. That amounts to 10% growth year over year, with even greater growth of highly engaged users, chief financial officer Brent Norwood told investors. 

The company’s JDLink Boost kits, which include both hardware and software to foster digital connectivity for agricultural equipment in remote areas, are also growing quickly. Deere has sold 12,500 of the kits since launching in late 2024, with sales growing 25% in Q2 2026, it said. The kits work in partnership with StarLink.

Deere also noted successful uptake of its software solutions among customers, in particular See & Spray technology, which uses computer vision and machine learning to target weeds while preserving crops. 

“Taken together, this combination of job step innovation, integrated technology and expanding connectivity positions us well to continue driving productivity for our customers while supporting recurring high-value revenues across the ag cycle,” director of investor relations Josh Beal told investors in a call.

He noted that customers reported 50%-60% savings on herbicides attributable to using the technology.

John Deere calls out tariff impacts

Deere said quarterly results were boosted by a $272 million tariff refund made possible by a February U.S. Supreme Court decision invalidating certain tariffs under the International Emergency Economic Powers Act. Beal noted that the refund “lifted margins by nearly 2.5 points” for Deere in Q2. Still, he added that since the Supreme Court’s decision, Deere has had to contend with “the introduction of new Section 122 tariffs and adjustments to Section 232 tariffs.”

Production costs were higher in Q2 than in previous quarters, due to a combination of direct tariff expenses and ensuing higher costs of materials and freight. 

Taking into account the tariff refund, Deere now expects that the full cost of tariffs for the 2026 fiscal year will be approximately $900 million.

“The cumulative impact of these changes is that on a full-year basis, our direct tariff exposure remains essentially unchanged at approximately $1.2 billion which is approximately a 3% margin headwind,” Beal stated.

Meanwhile, Deere is pursuing changes as it adjusts to the new environment.

In response to continued tariff uncertainty, the company is continuing to invest in U.S. manufacturing, Norwood said. In Q2, Deere began building excavators in a North Carolina facility as part of a planned $70 million investment in bringing excavator design and construction to the U.S.

Sign up

Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.