NEW YORK, August 3, 2026, 15:08 ET — U.S. cash markets begin trading.
- The stock rose 5.6% to $10.82 as of 2:53 p.m. ET, after reaching a session high of $12.00 earlier.
- Adjusted earnings came in at $0.13 per share, beating the consensus estimate of $0.10. Revenue totaled $4.803 billion, higher than the anticipated $4.77 billion.
- The revised cash-flow outlook suggests second-half generation of between $639 million and $839 million, versus an estimated $629 million produced in the second half of last year.
Shares of CNH Industrial N.V. stayed solidly up after the machinery producer topped forecasts and shifted its 2026 outlook to reflect better performance. However, the stock gave up a large portion of its initial gains.
The challenge now moves to cash conversion. CNH reported usage of $439 million in industrial free cash flow by June. To meet its revised full-year goal, it must generate between $639 million and $839 million in the months following June.
Second-half cash at the guide midpoint needs to total $739 million, approximately 17% higher than the inferred level for 2025. A sales improvement is apparent, with cash performance now the key metric to watch.
| Industrial free-cash-flow bridge | $ million |
|---|---|
| H1 2026 | (439) |
| 2026 full-year outlook | 200–400 |
| Calculated H2 2026 | 639–839 |
| Estimated H2 2025 | 629 |
The comparison for 2025 amounts to $513 million for the full year, subtracting a negative $116 million up to June. Figures are based on company data.
Quarterly profit surpassed expectations by three cents per share. Revenue topped the stated consensus by approximately $33 million. The share price climbed to $12.00, marking a 17.1% rise, before giving back close to two-thirds of that increase.
| Second-quarter summary | Q2 2026 | Consensus forecast | Q2 2025 |
|---|---|---|---|
| Revenue | $4.803 billion | $4.77 billion | $4.711 billion |
| Adjusted diluted EPS | $0.13 | $0.10 | $0.17 |
| Industrial adjusted EBIT | $167 million | — | $224 million |
| Industrial free cash flow | $150 million | — | $451 million |
Figures reported by the company; consensus projection was issued prior to the announcement.
The results did not represent a complete rebound in profit. Industrial net sales increased by 3%, or 1% when excluding currency movements. Adjusted industrial EBIT declined by 25%. The margin contracted by 160 basis points.
| Segment performance | Q2 sales | Sales change | Adjusted EBIT | EBIT change | Margin: 2026 vs 2025 |
|---|---|---|---|---|---|
| Agriculture | $3.277 billion | up 1% | $170 million | down 35% | 5.2% compared to 8.1% |
| Construction | $866 million | up 12% | $15 million | down 57% | 1.7% compared to 4.5% |
CNH stated agriculture sales slipped 1% at constant currency, while construction sales increased 10% on the same basis.
Growth in reported sales was primarily driven by construction. However, adjusted EBIT in this segment declined by 57%. Increased tariffs and research expenses outweighed the benefit of higher volumes.
Demand for farm equipment stayed sluggish across key markets. North American tractor sales declined by 16% to 17%, while combine sales in South America decreased 29%. CEO Gerrit Marx described the market as “at the trough of the agriculture cycle.” CNH Investors
Marx mentioned “dealer inventory normalization” and older equipment fleets as well. These factors point to prospects of higher volumes, but margins remain unrecovered. CNH Investors
The revised forecast shifted each significant range higher or closer to its previous upper limit. The biggest adjustment was seen in construction sales.
| Full-year 2026 measure | Previous guidance | Updated guidance |
|---|---|---|
| Agriculture sales growth | –5% to flat | Roughly unchanged |
| Agriculture adjusted EBIT margin | 4.5%–5.5% | 5.0%–5.5% |
| Construction sales growth | About flat | +5% to +10% |
| Construction adjusted EBIT margin | 1.0%–2.0% | 1.8%–2.3% |
| Industrial free cash flow | $150–$350 million | $200–$400 million |
| Adjusted diluted EPS | $0.35–$0.45 | $0.41–$0.46 |
Earlier ranges were announced in February and subsequently confirmed. On Monday, CNH released the revised ranges.
The midpoint for adjusted EPS guidance rose by 3.5 cents. The cash-flow projection midpoint climbed $50 million. The margin target for Construction was also revised up, even though its second-quarter performance was soft.
The sector response was broadly positive, though gains varied. Deere & Co. NYSE:DE rose 2.2% in recent trading. AGCO Corp. NYSE:AGCO increased by 0.2%. Both stocks had reported bigger advances earlier.
Risks remain high, with tariffs, transportation expenses, and sluggish farm economics in South America continuing to weigh on margins. Financial Services receivables more than 30 days overdue increased to 4.4%, up from 3.9%.
CNH has demonstrated that sales can level off close to the bottom of the cycle. The latter half needs to prove that these sales translate into cash.
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