Al Root

Shares of construction and farming equipment maker CNH Industrial have been flying lately, but were lower early on Tuesday, even though the company reported better-than-expected fourth-quarter earnings.

What gives?

CNH stock was down 4.9% at $12.13 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were down 0.3% and 0.1%, respectively.

The move came after CNH reported adjusted quarterly earnings per share of 19 cents from sales of $5.2 billion. Wall Street was looking for about 11 cents and $5 billion, respectively. A year ago, CNH reported earnings per share of 15 cents from sales of $4.9 billion.

CNH management expects farming equipment sales to decline by about 2.5% compared with 2025, while construction sales are expected to be flat. Analysts were projecting sales growth for both divisions in 2026. Industrial operating profit margins should be north of 4% in 2026, while investors were expecting closer to 6%.

Those forecasts are likely the biggest reason for the early stock decline. Starting points also matter. CNH stock had been strong lately, with a gain of 38% year to date coming into the week.

Shares were boosted by strong performance from peers. AGCO stock rose 2.2% after it reported better-than-expected fourth-quarter earnings on Feb. 5. AGCO expects growth this year, projecting 2026 sales of between $10.4 billion and $10.7 billion, compared with the 2025 total of $10.1 billion.

AGCO stock was up 35% year to date, coming into Tuesday trading. Shares of Deere, whose fiscal year ends in October, were up 30%. Wall Street projects growth for it as well, with 2026 sales of about $40 billion, up from roughly $39 billion generated in fiscal year 2025.

The lack of growth in CNH's outlook might weigh on sector shares on Tuesday. Deere and AGCO shares were down 0.5% and. 1.2% in early trading, respectively.

Write to Al Root at allen.root@dowjones.com

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(END) Dow Jones Newswires

February 17, 2026 08:57 ET (13:57 GMT)

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