Deere Reports Third Quarter Net Income of $1.379 Billion

Rhea-AI Summary

Deere (NYSE: DE) reported third-quarter 2026 net income of $1.379 billion, up 7% from $1.289 billion a year earlier, with diluted EPS of $5.10 versus $4.75. Worldwide net sales and revenues rose 5% to $12.608 billion, while equipment net sales were $10.999 billion.

For the first nine months, net income attributable to Deere was $3.808 billion (down 4%), or $14.06 per share, on net sales and revenues of $35.589 billion, up 7%. Deere forecast fiscal 2026 net income of $4.75–$5.00 billion and highlighted mixed segment trends, including stronger Small Agriculture & Turf and Construction & Forestry and softer Production & Precision Agriculture.

Positive

• Q3 2026 net income $1.379 billion, up 7% year over year
• Q3 worldwide net sales and revenues $12.608 billion, up 5% year over year
• Small Agriculture & Turf Q3 net sales up 12% to $3.383 billion; operating profit up 28% to $622 million
• Construction & Forestry Q3 net sales up 18% to $3.618 billion; operating profit up 84% to $436 million
• Tariff recoveries $110 million in Q3 and $382 million year to date in 2026
• Fiscal 2026 net income guidance raised to a range of $4.75–$5.00 billion

Negative

• Year-to-date 2026 net income $3.808 billion, down 4% versus 2025
• Production & Precision Ag Q3 net sales down 6% to $3.998 billion; operating profit down 9% to $527 million
• Production & Precision Ag 2026 outlook net sales expected down ~10%
• Industry outlook 2026 large ag U.S. & Canada down 15–20%; South America tractors and combines down 15–20%
• Global Forestry 2026 industry outlook down approximately 10%

Market Reaction – DE

+3.59% $601.50 5.5x vol

15m delay

+3.59% Vs previous close

$601.50 Last Price

$580.01 $610.00 Day Range

$162.37B Market Cap

5.5x Rel. Volume

Following this news, DE has gained 3.59%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $601.50. Trading volume is exceptionally heavy at 5.5x the average, suggesting very strong buying interest.

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Market Context

The tag-specific earnings record showed an average 24-hour move of -0.45% across five events, adding...

Analysis

The tag-specific earnings record showed an average 24-hour move of -0.45% across five events, adding historical context. Short positioning was categorized as low; relevant watchpoints include subsequent results and financing disclosures.

Key Figures

Third-quarter net income: $1.379 billion Diluted EPS: $5.10 Fiscal 2026 net income guidance: $4.75 billion to $5.00 billion +5 more

8 metrics

Third-quarter net income $1.379 billion Q3 2026, compared with $1.289 billion in Q3 2025

Diluted EPS $5.10 Q3 2026, compared with $4.75 in Q3 2025

Fiscal 2026 net income guidance $4.75 billion to $5.00 billion Improved fiscal 2026 forecast

Nine-month net income $3.808 billion First nine months of 2026, compared with $3.962 billion in 2025

Third-quarter revenues $12.608 billion Q3 2026, up 5 percent

Construction & Forestry operating profit $436 million Q3 2026, up 84 percent

Small Agriculture & Turf operating profit $622 million Q3 2026, up 28 percent

Tariff recoveries $110 million and $382 million Third quarter and first nine months of 2026

Previous Earnings Reports

5 past events · Latest: May 21 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 21	2Q26 earnings report	Negative	-5.2%	Net income declined year over year despite revenue growth.
Feb 19	1Q26 earnings report	Neutral	+11.6%	Quarterly net income report provided without comparative operating details.
Nov 26	4Q25 earnings report	Neutral	-5.7%	Quarterly and fiscal-year net income were reported.
Aug 14	3Q25 earnings report	Negative	-6.8%	Net income and revenue declined while fiscal guidance narrowed.
May 15	2Q25 earnings report	Negative	+3.8%	Net income and revenue declined while fiscal guidance was revised.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions were mixed, with an average 24-hour move of -0.45% across five events.

Key Terms

fully diluted eps, operating margin, foreign currency translation, tariff recoveries

4 terms

fully diluted eps financial

"Fully diluted EPS $5.10 $4.75"

Fully diluted EPS is a measure of a company’s net profit divided by the total number of shares that would exist if every convertible instrument (stock options, warrants, convertible debt and preferred shares) were converted into common stock. For investors it shows a 'worst-case' earnings-per-share figure—like slicing a pie assuming every possible extra slice is cut—so you can judge share value and compare companies while accounting for potential dilution.

operating margin financial

"Operating margin 13.2 % 13.6 %"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

View in glossary

foreign currency translation financial

"partially offset by favorable price realization and foreign currency translation"

Foreign currency translation is the process of converting financial statements prepared in one currency into another currency so they can be combined or compared. Investors care because exchange rate swings can change reported revenue, profit and asset values even when a company’s underlying business hasn’t changed — like converting vacation spending back to your home money and seeing the total rise or fall depending on the day’s exchange rate.

tariff recoveries financial

"The company recorded tariff recoveries in the third quarter"

Charges or price adjustments a company applies to offset higher import or export duties and related trade costs so its net revenue and margins are maintained. Think of it like a store adding a small fee when its supplier’s delivery cost rises; the company is shifting or recouping an external cost rather than absorbing it internally. Investors track tariff recoveries because they influence reported sales, profit margins, competitive pricing and demand sensitivity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Disciplined execution drives stronger-than-expected results in a dynamic market.
• Net income guidance improved to $4.75 billion to $5.00 billion.
• Order book trends reinforce 2026 as the bottom of the ag equipment cycle.

MOLINE, Ill., Aug. 20, 2026 /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $1.379 billion for the third quarter ended August 2, 2026, or $5.10 per share, compared with net income of $1.289 billion, or $4.75 per share, for the quarter ended July 27, 2025. For the first nine months of the year, net income attributable to Deere & Company was $3.808 billion, or $14.06 per share, compared with $3.962 billion, or $14.57 per share, for the same period last year.

Worldwide net sales and revenues increased 5 percent, to $12.608 billion, for the third quarter of 2026 and rose 7 percent, to $35.589 billion, for nine months. Net sales were $10.999 billion for the quarter and $30.779 billion for nine months, compared with $10.357 billion and $28.338 billion last year, respectively.

"Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio," said John C. May, chairman and chief executive officer. "Our performance underscores the strength of our business, supported by stable U.S. market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.75 billion to $5.00 billion.

"As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle," May said. "Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation."

Deere & Company		Third Quarter								Year to Date
$ in millions, except per share amounts		2026			2025			% Change		2026			2025			% Change
Net sales and revenues		$	12,608		$	12,018		5 %		$	35,589		$	33,290		7 %
Net income		$	1,379		$	1,289		7 %		$	3,808		$	3,962		-4 %
Fully diluted EPS		$	5.10		$	4.75				$	14.06		$	14.57

Results for the prior periods presented were affected by special items. See Note 2 of the financial statements for further details. The company recorded tariff recoveries in the third quarter and first nine months of 2026 of $110 million and $382 million, respectively. The tariff impact for each segment is primarily included in the "Production Costs" category below.

Production & Precision Agriculture		Third Quarter
$ in millions		2026			2025			% Change
Net sales		$	3,998		$	4,273		-6 %
Operating profit		$	527		$	580		-9 %
Operating margin			13.2 %			13.6 %

Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Operating profit decreased primarily due to lower shipment volumes / sales mix and higher production costs, partially offset by favorable price realization and the effects of foreign currency exchange.

Small Agriculture & Turf		Third Quarter
$ in millions		2026			2025			% Change
Net sales		$	3,383		$	3,025		12 %
Operating profit		$	622		$	485		28 %
Operating margin			18.4 %			16.0 %

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs.

Construction & Forestry		Third Quarter
$ in millions		2026			2025			% Change
Net sales		$	3,618		$	3,059		18 %
Operating profit		$	436		$	237		84 %
Operating margin			12.1 %			7.7 %

Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to favorable price realization, partially offset by higher SA&G and R&D costs.

Financial Services		Third Quarter
$ in millions		2026			2025			% Change
Net income		$	219		$	205		7 %

Financial Services net income increased primarily due to favorable financing spreads, partially offset by the impact of a lower average portfolio.

Industry Outlook for Fiscal 2026
Agriculture & Turf
U.S. & Canada:
Large Ag						Down 15 to 20%
Small Ag & Turf						Flat to up 5%
Europe						Flat
South America (Tractors & Combines)						Down 15 to 20%
Asia						Flat
Construction & Forestry
U.S. & Canada:
Construction Equipment						Up 5 to 10%
Compact Construction Equipment						Up ~5%
Global Forestry						Down ~10%
Global Roadbuilding						Up ~10%

 

Deere Segment Outlook for Fiscal 2026
				Currency		Price
$ in millions		Net Sales		Translation		Realization
Production & Precision Ag		Down ~10%		+2.5 %		~ +1.0%
Small Ag & Turf		Up ~15%		+0.5 %		~ +1.5%
Construction & Forestry		Up ~20%		+1.5 %		~ +3.0%
Financial Services		Net Income		~ $870

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally, while others could more heavily affect a particular line of business.

Forward-looking statements are based on information currently available to the company and the company's current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

• the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs including the availability and price of fertilizer, government farm programs, and availability of transport for crops
• construction and forestry activity, which is affected by factors such as housing starts and supply, real estate and housing prices, levels of residential and non-residential construction, public and private infrastructure development, and government policies and regulations
• macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer sentiment and practices due to slower economic growth or a recession, and regional or global liquidity constraints
• the uncertainty of government policies and actions with respect to the global trade environment, including increased and contested tariffs announced by the U.S. government and retaliatory trade regulations
• political, economic, and social instability in the geographies in which the company operates
• worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and the resulting impacts on the demand for the company's equipment
• rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities
• accurately forecasting customer demand for products and services, and adequately managing inventory
• selling products domestically or internationally, managing increased costs of production, absorbing or passing on increased expenses, as well as accurately predicting financial results and industry trends
• availability and price of raw materials, components, and whole goods
• delays or disruptions in the company's supply chain, including those arising from geopolitical conflicts
• changes in climate patterns, unfavorable weather events, and natural disasters
• suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages
• higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions
• attracting, developing, engaging, and retaining qualified employees
• adapting in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology
• realizing the anticipated benefits of the company's Smart Industrial Operating Model, achieving the company's Leap Ambitions, and executing the company's related business strategies in production systems, precision technologies, and aftermarket support
• the company's dealer network's development and implementation of successful sales plans, management of new and used inventory, distribution of the company's products, and support and service for the company's precision technology solutions
• achieving anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
• negative claims or publicity that damage the company's reputation or brand
• the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge
• labor relations and contracts, including work stoppages and other disruptions
• security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products
• leveraging artificial intelligence and machine learning within the company's business processes
• changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environment (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, product liability, right-to-repair, tariffs, tax, telematics, and telecommunications
• governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
• warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products
• investigations, claims, lawsuits, or other legal proceedings
• loss of or challenges to intellectual property rights

Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

DEERE & COMPANY THIRD QUARTER 2026 PRESS RELEASE (In millions of dollars) Unaudited
		Three Months Ended								Nine Months Ended
		August 2			July 27			%		August 2			July 27			%
		2026			2025			Change		2026			2025			Change
Net sales and revenues:
Production & Precision Ag net sales		$	3,998		$	4,273		-6		$	11,664		$	12,571		-7
Small Ag & Turf net sales			3,383			3,025		+12			9,036			7,767		+16
Construction & Forestry net sales			3,618			3,059		+18			10,079			8,000		+26
Financial Services revenues			1,371			1,418		-3			4,121			4,273		-4
Other revenues			238			243		-2			689			679		+1
Total net sales and revenues		$	12,608		$	12,018		+5		$	35,589		$	33,290		+7
Operating profit: *
Production & Precision Ag		$	527		$	580		-9		$	1,372		$	2,066		-34
Small Ag & Turf			622			485		+28			1,538			1,182		+30
Construction & Forestry			436			237		+84			1,134			681		+67
Financial Services			271			266		+2			823			740		+11
Total operating profit			1,856			1,568		+18			4,867			4,669		+4
Reconciling items **			52			60		-13			184			198		-7
Income taxes			(529)			(339)		+56			(1,243)			(905)		+37
Net income attributable to Deere & Company		$	1,379		$	1,289		+7		$	3,808		$	3,962		-4

*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of Financial Services includes the effect of interest expense and foreign exchange gains and losses.
**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars and shares except per share amounts) Unaudited
		Three Months Ended						Nine Months Ended
		2026			2025			2026			2025
Net Sales and Revenues
Net sales		$	10,999		$	10,357		$	30,779		$	28,338
Finance and interest income			1,353			1,426			4,011			4,233
Other income			256			235			799			719
Total			12,608			12,018			35,589			33,290
Costs and Expenses
Cost of sales			7,939			7,570			22,486			20,215
Research and development expenses			567			556			1,704			1,631
Selling, administrative and general expenses			1,220			1,217			3,401			3,387
Interest expense			710			794			2,141			2,408
Other operating expenses			290			281			846			817
Total			10,726			10,418			30,578			28,458
Income of Consolidated Group before Income Taxes			1,882			1,600			5,011			4,832
Provision for income taxes			529			339			1,243			905
Income of Consolidated Group			1,353			1,261			3,768			3,927
Equity in income of unconsolidated affiliates			24			10			34			11
Net Income			1,377			1,271			3,802			3,938
Less: Net loss attributable to noncontrolling interests			(2)			(18)			(6)			(24)
Net Income Attributable to Deere & Company		$	1,379		$	1,289		$	3,808		$	3,962
Per Share Data
Basic		$	5.11		$	4.76		$	14.10		$	14.61
Diluted			5.10			4.75			14.06			14.57
Dividends declared			1.62			1.62			4.86			4.86
Dividends paid			1.62			1.62			4.86			4.71
Average Shares Outstanding
Basic			269.8			270.7			270.1			271.1
Diluted			270.7			271.4			270.8			271.9

See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
		August 2			November 2			July 27
		2026			2025			2025
Assets
Cash and cash equivalents		$	8,928		$	8,276		$	8,580
Marketable securities			1,350			1,411			1,407
Trade accounts and notes receivable – net			7,723			5,317			6,103
Financing receivables – net			42,860			44,575			43,930
Financing receivables securitized – net			6,316			6,831			7,948
Other receivables			2,466			2,403			2,826
Equipment on operating leases – net			7,400			7,600			7,512
Inventories			7,811			7,406			7,713
Property and equipment – net			8,006			8,079			7,713
Goodwill			4,466			4,188			4,209
Other intangible assets – net			940			892			926
Retirement benefits			3,541			3,273			3,182
Deferred income taxes			2,343			2,284			2,209
Other assets			3,457			3,461			3,559
Total Assets		$	107,607		$	105,996		$	107,817
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings		$	17,115		$	13,796		$	14,607
Short-term securitization borrowings			6,095			6,596			7,610
Accounts payable and accrued expenses			13,668			13,909			13,582
Deferred income taxes			411			434			489
Long-term borrowings			40,626			43,544			44,429
Retirement benefits and other liabilities			1,651			1,710			1,836
Total liabilities			79,566			79,989			82,553
Redeemable noncontrolling interest			44			51			84
Stockholders' Equity
Total Deere & Company stockholders' equity			27,990			25,950			25,175
Noncontrolling interests			7			6			5
Total stockholders' equity			27,997			25,956			25,180
Total Liabilities and Stockholders' Equity		$	107,607		$	105,996		$	107,817

See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
		2026			2025
Cash Flows from Operating Activities
Net income		$	3,802		$	3,938
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			205			258
Depreciation and amortization			1,787			1,668
Impairments and other adjustments						29
Share-based compensation expense			116			104
Credit for deferred income taxes			(61)			(102)
Changes in assets and liabilities:
Receivables related to sales			(1,252)			(494)
Inventories			(443)			(526)
Accounts payable and accrued expenses			(266)			(717)
Accrued income taxes payable/receivable			(119)			(147)
Retirement benefits			(367)			(813)
Other			(152)			266
Net cash provided by operating activities			3,250			3,464
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)			19,922			19,712
Proceeds from maturities and sales of marketable securities			389			359
Proceeds from sales of equipment on operating leases			1,479			1,408
Cost of receivables acquired (excluding receivables related to sales)			(19,139)			(18,962)
Acquisitions of businesses, net of cash acquired			(455)			(89)
Purchases of marketable securities			(361)			(598)
Purchases of property and equipment			(716)			(852)
Cost of equipment on operating leases acquired			(1,933)			(2,009)
Collections of receivables from unconsolidated affiliates			197			334
Collateral on derivatives – net			(63)			127
Other			(145)			(231)
Net cash used for investing activities			(825)			(801)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)			3,205			(2,060)
Proceeds from borrowings issued (original maturities greater than three months)			5,373			10,707
Payments of borrowings (original maturities greater than three months)			(8,338)			(7,743)
Repurchases of common stock			(697)			(1,136)
Dividends paid			(1,316)			(1,282)
Other			(55)			(43)
Net cash used for financing activities			(1,828)			(1,557)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			20			108
Net Increase in Cash, Cash Equivalents, and Restricted Cash			617			1,214
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			8,533			7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	9,150		$	8,847

See Condensed Notes to Interim Consolidated Financial Statements.

 

DEERE & COMPANY Condensed Notes to Interim Consolidated Financial Statements (In millions of dollars) Unaudited
(1)	Acquisitions
	In 2026, the company completed several acquisitions to advance the capabilities of its existing technology offerings, including the February acquisition of Tenna LLC (Tenna), a U.S. construction technology company that provides mixed-fleet equipment operations and asset tracking solutions, for a purchase price of $439 million, net of cash acquired. Tenna was assigned to the CF segment. The company also acquired other small-scale businesses assigned to the PPA, SAT, and CF segments for a combined purchase price consideration of $16 million, net of cash acquired. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets.
	In 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the PPA and CF segments. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets.
(2)	Special Items
	Impairment
	In the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." The charge is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.
	Discrete Tax Items
	In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.
	Banco John Deere S.A.
	In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market.
	The BJD business was reclassified as held for sale in 2024. In January 2025, the valuation allowance on assets held for sale decreased, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 million recorded in "Selling, administrative and general expenses" in the nine months ended July 27, 2025. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows.
	The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income (loss) of unconsolidated affiliates" within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

Summary of 2025 Special Items

The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025.

		Three Months															Nine Months
		PPA			SAT			CF			FS			Total			PPA			SAT			CF			FS			Total
2025 Expense (benefit):
Impairment		$	28		$	17		$	16					$	61		$	28		$	17		$	16					$	61
BJD measurement																										$	(32)			(32)
Total expense (benefit)		$	28		$	17		$	16					$	61		$	28		$	17		$	16		$	(32)		$	29

(3)

The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company's Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.

 

DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2026			2025			2026			2025			2026			2025			2026			2025
Net Sales and Revenues
Net sales		$	10,999		$	10,357														$	10,999		$	10,357
Finance and interest income			149			133		$	1,383		$	1,433		$	(179)		$	(140)			1,353			1,426	1
Other income			191			190			122			111			(57)			(66)			256			235	2, 3, 4
Total			11,339			10,680			1,505			1,544			(236)			(206)			12,608			12,018
Costs and Expenses
Cost of sales			7,950			7,578									(11)			(8)			7,939			7,570	4
Research and development expenses			567			556															567			556
Selling, administrative and general expenses			988			999			234			220			(2)			(2)			1,220			1,217	4
Interest expense			99			102			661			720			(50)			(28)			710			794	1
Interest compensation to Financial Services			129			112									(129)			(112)							1
Other operating expenses			(23)			(8)			357			345			(44)			(56)			290			281	3, 4, 5
Total			9,710			9,339			1,252			1,285			(236)			(206)			10,726			10,418
Income before Income Taxes			1,629			1,341			253			259									1,882			1,600
Provision for income taxes			472			274			57			65									529			339
Income after Income Taxes			1,157			1,067			196			194									1,353			1,261
Equity in income (loss) of unconsolidated affiliates			1			(1)			23			11									24			10
Net Income			1,158			1,066			219			205									1,377			1,271
Less: Net loss attributable to noncontrolling interests			(2)			(18)															(2)			(18)
Net Income Attributable to Deere & Company		$	1,160		$	1,084		$	219		$	205								$	1,379		$	1,289

1	Elimination of intercompany interest income and expense.
2	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
3	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
4	Elimination of intercompany service revenues and fees.
5	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2026			2025			2026			2025			2026			2025			2026			2025
Net Sales and Revenues
Net sales		$	30,779		$	28,338														$	30,779		$	28,338
Finance and interest income			379			351		$	4,093		$	4,268		$	(461)		$	(386)			4,011			4,233	1
Other income			616			580			408			350			(225)			(211)			799			719	2, 3, 4
Total			31,774			29,269			4,501			4,618			(686)			(597)			35,589			33,290
Costs and Expenses
Cost of sales			22,518			20,239									(32)			(24)			22,486			20,215	4
Research and development expenses			1,704			1,631															1,704			1,631
Selling, administrative and general expenses			2,775			2,761			632			632			(6)			(6)			3,401			3,387	4
Interest expense			294			282			1,973			2,206			(126)			(80)			2,141			2,408	1
Interest compensation to Financial Services			334			306									(334)			(306)							1
Other operating expenses			(59)			(47)			1,093			1,045			(188)			(181)			846			817	3, 4, 5
Total			27,566			25,172			3,698			3,883			(686)			(597)			30,578			28,458
Income before Income Taxes			4,208			4,097			803			735									5,011			4,832
Provision for income taxes			1,059			752			184			153									1,243			905
Income after Income Taxes			3,149			3,345			619			582									3,768			3,927
Equity in income (loss) of unconsolidated affiliates						(4)			34			15									34			11
Net Income			3,149			3,341			653			597									3,802			3,938
Less: Net loss attributable to noncontrolling interests			(6)			(24)															(6)			(24)
Net Income Attributable to Deere & Company		$	3,155		$	3,365		$	653		$	597								$	3,808		$	3,962

1	Elimination of intercompany interest income and expense.
2	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
3	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
4	Elimination of intercompany service revenues and fees.
5	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited
		EQUIPMENT									FINANCIAL
		OPERATIONS									SERVICES									ELIMINATIONS									CONSOLIDATED
		Aug 2			Nov 2			Jul 27			Aug 2			Nov 2			Jul 27			Aug 2			Nov 2			Jul 27			Aug 2			Nov 2			Jul 27
		2026			2025			2025			2026			2025			2025			2026			2025			2025			2026			2025			2025
Assets
Cash and cash equivalents		$	6,607		$	6,340		$	6,641		$	2,321		$	1,936		$	1,939											$	8,928		$	8,276		$	8,580
Marketable securities			155			217			240			1,195			1,194			1,167												1,350			1,411			1,407
Receivables from Financial Services			5,364			4,649			3,649											$	(5,364)		$	(4,649)		$	(3,649)										6
Trade accounts and notes receivable – net			1,472			1,316			1,335			8,442			5,900			7,064			(2,191)			(1,899)			(2,296)			7,723			5,317			6,103	7
Financing receivables – net			106			88			84			42,754			44,487			43,846												42,860			44,575			43,930
Financing receivables securitized – net			2			1			1			6,314			6,830			7,947												6,316			6,831			7,948
Other receivables			1,926			1,809			2,013			594			658			867			(54)			(64)			(54)			2,466			2,403			2,826	8
Equipment on operating leases – net												7,400			7,600			7,512												7,400			7,600			7,512
Inventories			7,811			7,406			7,713																					7,811			7,406			7,713
Property and equipment – net			7,975			8,047			7,680			31			32			33												8,006			8,079			7,713
Goodwill			4,466			4,188			4,209																					4,466			4,188			4,209
Other intangible assets – net			940			892			926																					940			892			926
Retirement benefits			3,439			3,181			3,092			104			94			92			(2)			(2)			(2)			3,541			3,273			3,182
Deferred income taxes			2,487			2,507			2,471			47			46			44			(191)			(269)			(306)			2,343			2,284			2,209	9
Other assets			2,371			2,218			2,357			1,098			1,244			1,211			(12)			(1)			(9)			3,457			3,461			3,559
Total Assets		$	45,121		$	42,859		$	42,411		$	70,300		$	70,021		$	71,722		$	(7,814)		$	(6,884)		$	(6,316)		$	107,607		$	105,996		$	107,817
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings		$	417		$	414		$	461		$	16,698		$	13,382		$	14,146											$	17,115		$	13,796		$	14,607
Short-term securitization borrowings			1			1						6,094			6,595			7,610												6,095			6,596			7,610
Payables to equipment operations												5,364			4,649			3,649		$	(5,364)		$	(4,649)		$	(3,649)										6
Accounts payable and accrued expenses			12,796			12,757			12,795			3,129			3,116			3,146			(2,257)			(1,964)			(2,359)			13,668			13,909			13,582	7, 8
Deferred income taxes			326			347			393			276			356			402			(191)			(269)			(306)			411			434			489	9
Long-term borrowings			8,907			8,756			8,789			31,719			34,788			35,640												40,626			43,544			44,429
Retirement benefits and other liabilities			1,586			1,646			1,767			67			66			71			(2)			(2)			(2)			1,651			1,710			1,836
Total liabilities			24,033			23,921			24,205			63,347			62,952			64,664			(7,814)			(6,884)			(6,316)			79,566			79,989			82,553
Redeemable noncontrolling interest			44			51			84																					44			51			84
Stockholders' Equity
Total Deere & Company stockholders' equity			27,990			25,950			25,175			6,953			7,069			7,058			(6,953)			(7,069)			(7,058)			27,990			25,950			25,175	10
Noncontrolling interests			7			6			5																					7			6			5
Financial Services' equity			(6,953)			(7,069)			(7,058)												6,953			7,069			7,058										10
Adjusted total stockholders' equity			21,044			18,887			18,122			6,953			7,069			7,058												27,997			25,956			25,180
Total Liabilities and Stockholders' Equity		$	45,121		$	42,859		$	42,411		$	70,300		$	70,021		$	71,722		$	(7,814)		$	(6,884)		$	(6,316)		$	107,607		$	105,996		$	107,817

6	Elimination of receivables / payables between equipment operations and Financial Services.
7	Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
8	Reclassification of other receivables / payables.
9	Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
10	Elimination of Financial Services' equity.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2026			2025			2026			2025			2026			2025			2026			2025
Cash Flows from Operating Activities
Net income		$	3,149		$	3,341		$	653		$	597								$	3,802		$	3,938
Adjustments to reconcile net income to net cash provided by  operating activities:
Provision (credit) for credit losses			(1)			18			206			240									205			258
Depreciation and amortization			1,042			965			821			804		$	(76)		$	(101)			1,787			1,668	11
Impairments and other adjustments						61						(32)												29
Share-based compensation expense															116			104			116			104	12
Distributed earnings of Financial Services			794			1,066									(794)			(1,066)							13
Provision (credit) for deferred income taxes			20			(242)			(81)			140									(61)			(102)
Changes in assets and liabilities:
Receivables related to sales			(123)			(66)									(1,129)			(428)			(1,252)			(494)	14, 16
Inventories			(330)			(423)									(113)			(103)			(443)			(526)	15
Accounts payable and accrued expenses			61			(646)			(34)			69			(293)			(140)			(266)			(717)	16
Accrued income taxes payable/receivable			(99)			(89)			(20)			(58)									(119)			(147)
Retirement benefits			(359)			(770)			(8)			(43)									(367)			(813)
Other			(142)			123			71			182			(81)			(39)			(152)			266	11, 12, 15
Net cash provided by operating activities			4,012			3,338			1,608			1,899			(2,370)			(1,773)			3,250			3,464
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related   to sales)									20,261			20,178			(339)			(466)			19,922			19,712	14
Proceeds from maturities and sales of marketable securities			108			27			281			332									389			359
Proceeds from sales of equipment on operating leases									1,479			1,408									1,479			1,408
Cost of receivables acquired (excluding receivables   related to sales)									(19,351)			(19,189)			212			227			(19,139)			(18,962)	14
Acquisitions of businesses, net of cash acquired			(455)			(89)															(455)			(89)
Purchases of marketable securities			(42)			(133)			(319)			(465)									(361)			(598)
Purchases of property and equipment			(714)			(851)			(2)			(1)									(716)			(852)
Cost of equipment on operating leases acquired									(2,086)			(2,148)			153			139			(1,933)			(2,009)	15
Increase in investment in Financial Services			(5)												5										17
Increase in trade and wholesale receivables									(1,550)			(807)			1,550			807							14
Collections of receivables from unconsolidated affiliates						189			197			145									197			334
Collateral on derivatives – net			1			4			(64)			123									(63)			127
Other			(72)			(75)			(73)			(156)									(145)			(231)
Net cash used for investing activities			(1,179)			(928)			(1,227)			(580)			1,581			707			(825)			(801)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original   maturities three months or less)			18			294			3,187			(2,354)									3,205			(2,060)
Change in intercompany receivables/payables			(735)			(660)			735			660
Proceeds from borrowings issued (original maturities greater   than three months)			430			2,188			4,943			8,519									5,373			10,707
Payments of borrowings (original maturities greater than   three months)			(262)			(863)			(8,076)			(6,880)									(8,338)			(7,743)
Repurchases of common stock			(697)			(1,136)															(697)			(1,136)
Capital investment from Equipment Operations									5						(5)										17
Dividends paid			(1,316)			(1,282)			(794)			(1,066)			794			1,066			(1,316)			(1,282)	13
Other			(27)			(25)			(28)			(18)									(55)			(43)
Net cash used for financing activities			(2,589)			(1,484)			(28)			(1,139)			789			1,066			(1,828)			(1,557)
Effect of Exchange Rate Changes on Cash, Cash  Equivalents, and Restricted Cash			22			96			(2)			12									20			108
Net Increase in Cash, Cash Equivalents, and Restricted Cash			266			1,022			351			192									617			1,214
Cash, Cash Equivalents, and Restricted Cash at  Beginning of Period			6,364			5,643			2,169			1,990									8,533			7,633
Cash, Cash Equivalents, and Restricted Cash at  End of Period		$	6,630		$	6,665		$	2,520		$	2,182								$	9,150		$	8,847

11	Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12	Reclassification of share-based compensation expense.
13	Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.
14	Primarily reclassification of receivables related to the sale of equipment.
15	Reclassification of direct lease agreements with retail customers.
16	Reclassification of sales incentive accruals on receivables sold to Financial Services.
17	Elimination of change in investment from equipment operations to Financial Services.

 

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SOURCE Deere & Company

FAQ

How did Deere (NYSE: DE) perform in its third-quarter 2026 earnings?

Deere reported third-quarter 2026 net income of $1.379 billion and diluted EPS of $5.10. According to Deere, worldwide net sales and revenues rose 5% to $12.608 billion, with equipment net sales of $10.999 billion, compared with $10.357 billion a year earlier.

What is Deere’s fiscal 2026 net income guidance and what does it mean for DE shareholders?

Deere forecasts fiscal 2026 net income of $4.75–$5.00 billion. According to Deere, this outlook reflects expectations that 2026 represents the bottom of the current agricultural equipment cycle, supported by early order trends, improving used-equipment inventories, and growing customer adoption of the company’s advanced technologies.

How did Deere’s main business segments perform in Q3 2026?

Performance was mixed across segments in Q3 2026. According to Deere, Production & Precision Ag net sales fell 6%, Small Agriculture & Turf net sales rose 12%, and Construction & Forestry net sales increased 18%, with Construction & Forestry operating profit up 84% to $436 million.

How do Deere’s year-to-date 2026 results compare with 2025 for DE investors?

Year-to-date 2026 net income attributable to Deere was $3.808 billion, down 4% from $3.962 billion in 2025. According to Deere, net sales and revenues for the first nine months increased 7% to $35.589 billion, reflecting growth despite lower profitability versus the prior year period.

What is Deere’s industry outlook for agriculture and construction markets in fiscal 2026?

Deere expects mixed industry conditions in 2026. According to Deere, U.S. & Canada large agriculture and South American tractors and combines are seen down 15–20%, while U.S. & Canada construction equipment is projected up 5–10% and global roadbuilding up around 10%.

What are Deere’s 2026 segment outlooks, including Financial Services net income, for DE?

Deere projects 2026 net sales down about 10% for Production & Precision Ag, up ~15% for Small Ag & Turf, and up ~20% for Construction & Forestry. According to Deere, Financial Services net income is expected to be approximately $870 million for fiscal 2026.

How did Deere’s Financial Services segment perform in the third quarter of 2026?

Financial Services delivered third-quarter 2026 net income of $219 million, up 7% from $205 million. According to Deere, the increase was primarily driven by favorable financing spreads, partially offset by the impact of a lower average financing portfolio during the period.