01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Corteva, Inc. reported net sales of $6.38 billiona for the second quarter of 2026, a slight decrease of 1% compared to the prior year period, attributed to a 3% volume decrease, partly offset by a 1% increase in price and a 1% favorable currency impact.
For the first six months of 2026, net sales increased by 4% to $11.28 billionb, driven by favorable currency impacts, volume growth, and price increases. Net income attributable to Corteva for the second quarter of 2026 was $1.16 billion, or $1.73 per diluted share, a decrease from $1.31 billion, or $1.92 per diluted share, in the same period last year. This decline is influenced by various factors including increased restructuring charges and litigation settlements.
The company announced its intention to separate into two independent, publicly traded companies focused on its Seed and Crop Protection businesses, a move expected to be a tax-free spin-off. Operationally, the Seed segment remained flat in net sales year-over-year for the quarter but saw a 6%c increase in operating EBITDA.
The Crop Protection segment experienced a 4%d decrease in net sales but a 2% increase in operating EBITDA. The company is managing its liquidity through a combination of operating cash flow, credit facilities, and commercial paper, with total debt increasing significantly due to working capital needs and strategic payments.
02—Key points
Key Highlights
- Net sales for Q2 2026 decreased slightly by 1% to $6.38 billion, impacted by lower volumes, though price increases and favorable currency provided some offset.
- For the first six months of 2026, net sales grew 4% to $11.28 billion, supported by currency tailwinds, volume, and price.
- Net income attributable to Corteva declined in Q2 2026 to $1.16 billion ($1.73/share) from $1.31 billion ($1.92/share) in Q2 2025, impacted by higher restructuring and litigation costs.
- The company announced its intention to separate into two independent companies focused on Seed and Crop Protection businesses.
- Seed segment net sales were flat for Q2 2026, but operating EBITDA increased by 6%.
- Crop Protection segment net sales decreased by 4% for Q2 2026, while operating EBITDA saw a 2% increase.
- Corteva is undertaking significant restructuring actions, with a planned $115-$125 million in run-rate savings by 2027 from the 2026 Restructuring Actions.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.38B$6.46B | −1.2% |
| Cost of Revenue | $2.72B$2.93B | −7.3% |
| Gross Profit | $3.66B$3.52B | +3.9% |
| R&D Expenses | $388.00M$375.00M | +3.5% |
| SG&A Expenses | $1.16B$1.16B | +0.7% |
| Net Income | $1.17B$1.32B | −11.5% |
| EPS (Basic) | $1.73$1.92 | −9.9% |
| EPS (Diluted) | $1.73$1.92 | −9.9% |
| Shares Outstanding (Basic) | 668.60M681.70M | −1.9% |
| Shares Outstanding (Diluted) | 669.80M683.10M | −1.9% |
05—Questions
Frequently Asked Questions
What is the company's outlook for revenue and profitability in the near term?
For the second quarter of 2026, Corteva experienced a slight year-over-year decline in net sales (1%) due to lower volumes, despite price increases and favorable currency. While net income decreased, operating EBITDA saw an increase due to cost controls and favorable pricing/mix. The first six months showed revenue growth of 4%. Investors should monitor upcoming quarters for the impact of the announced separation and ongoing restructuring efforts on profitability.
What are the key financial risks and opportunities highlighted in this report?
Key financial risks include the significant impact of litigation and environmental liabilities, particularly related to PFAS, which are recognized as discontinued operations and carry substantial potential costs. Opportunities lie in the planned separation of Seed and Crop Protection businesses, which management believes will unlock value, and ongoing cost and productivity improvements. The company also faces currency fluctuations and competitive pricing pressures in certain markets.
How is Corteva managing its debt and liquidity?
Corteva's debt increased significantly, primarily due to higher short-term borrowings used to fund working capital needs, including a large payment for the Bayer resolution, capital spending, dividends, and share repurchases. The company believes its liquidity is adequate, supported by operating cash flow, access to credit markets, and commercial paper. They maintain substantial committed and uncommitted credit lines to meet short-term liquidity needs.
06—Continue