Deere’s Q2 fiscal 2026 Production & Precision Agriculture operating margin is expected to recover from the 4.4% posted in Q1, driven by the seasonal ramp-up in North American equipment production and a more favorable sales mix. Management has guided for double-digit margins across the remaining quarters of 2026 as higher-margin U.S. volumes offset lingering weakness in South America and tariff-related headwinds. Analyst models and recent commentary point to a range centered on 16–20%, reflecting modest improvement in equipment utilization but tempered by subdued farm incomes and competitive pricing pressures. With earnings scheduled for May 21, the tight clustering around the 16–18% and 18–20% buckets captures trader consensus on the pace of this rebound, while lower-probability outcomes above 20% or below 16% hinge on execution surprises in production efficiency or further macro deterioration.