Deere (NYSE: DE) Q1 net income falls 25% as sales and guidance hold
Rhea-AI Filing Summary
Deere & Company reported weaker profitability but solid sales growth for the first quarter of fiscal 2026. Net income attributable to Deere was $656 million, or $2.42 per diluted share, down from $869 million, or $3.19 per share, a year earlier, a 25% decline in profit.
Worldwide net sales and revenues rose 13% to $9.611 billion, with equipment net sales up to $8.001 billion from $6.809 billion. Large Production & Precision Agriculture stayed roughly flat in sales but saw operating profit fall 59% as tariffs, mix, and warranty costs pressured margins. In contrast, Small Agriculture & Turf net sales grew 24% and operating profit 58%, while Construction & Forestry net sales rose 34% with operating profit more than doubling.
Financial Services net income increased to $244 million from $230 million, helped by favorable financing spreads and lower credit losses. For fiscal 2026, Deere forecasts net income attributable to the company between $4.5 billion and $5.0 billion and expects weakness in large agriculture markets but growth in construction and smaller agriculture segments.
Positive
- Strong growth in non-large-ag segments: Small Agriculture & Turf net sales rose 24% with operating profit up 58%, and Construction & Forestry net sales grew 34% with operating profit up 111%, supporting a 13% increase in total net sales and revenues to $9.611 billion.
- Supportive full-year 2026 outlook: Deere forecasts fiscal 2026 net income attributable to the company between $4.5 billion and $5.0 billion, and expects net sales in Small Agriculture & Turf and Construction & Forestry to be up about 15%.
Negative
- Material profit decline and margin pressure: Net income attributable to Deere fell 25% year over year to $656 million, with Production & Precision Agriculture operating profit down 59% and its margin dropping to 4.4% due to higher tariffs, unfavorable mix, and warranty costs.
- Challenging large agriculture market outlook: The company projects U.S. and Canada Large Agriculture industry demand down 15–20% for fiscal 2026, and expects Production & Precision Agriculture net sales to decline 5–10%.
Insights
Profit falls despite strong sales; outlook leans on non-large-ag strength.
Deere delivered a mixed quarter: demand was healthy, but profitability declined. Total net sales and revenues rose
Performance diverged sharply by segment. Production & Precision Agriculture net sales grew only
Management guides fiscal
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM |
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
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Emerging growth company
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Item 2.02Results of Operations and Financial Condition
On Thursday, February 19, 2026, Deere & Company (the “Company”) issued a press release announcing its results of operations for the first quarter of fiscal 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01Regulation FD
On Thursday, February 19, 2026, the Company made available a presentation providing a review of its first quarter of fiscal 2026 in connection with its investor earnings call. A copy of the presentation is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01Financial Statements and Exhibits
(d)Exhibits
Number | Description of Exhibit |
99.1 | Press Release and Supplemental Financial Information (Furnished herewith) |
99.2 | First Quarter 2026 Earnings Conference Call Presentation (Furnished herewith) |
104 | Cover Page Interactive Data File (the cover page XBRL tags are imbedded in the Inline XBRL document) |
2
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DEERE & COMPANY | ||
By: | /s/ Kellye L. Walker | |
Kellye L. Walker | ||
Corporate Secretary | ||
Dated: February 19, 2026 | ||
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Exhibit 99.1
(Furnished herewith)
News Release |
|
| |
Contact:
Jen Hartmann
Director, Public Relations
HartmannJenniferA@JohnDeere.com
Deere Reports First Quarter Net Income of $656 Million
| ● | First quarter shipments ahead of plan as order books strengthen |
| ● | Diverse customer segments and geographies enable resilience and growth |
| ● | Net income guidance range increased to $4.5 billion - $5.0 billion |
MOLINE, Illinois (February 19, 2026) — Deere & Company reported net income of $656 million for the first quarter ended February 1, 2026, or $2.42 per share, compared with net income of $869 million, or $3.19 per share, for the quarter ended January 26, 2025.
Worldwide net sales and revenues increased 13 percent, to $9,611 million, in the most recent quarter. Net sales were $8,001 million for the quarter, compared with $6,809 million in the same quarter of 2025.
“While the global large agriculture industry continues to experience challenges, we’re encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” said John May, chairman and CEO of John Deere. “These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.5 billion to $5.0 billion.
“Our sustained investment in research and development throughout the cycle is yielding measurable results as we move toward launching a wide range of innovative products and solutions across all business segments,” stated May. “These advancements underscore the value of maintaining a robust portfolio that spans broad markets and regions worldwide, which should position us for success as we transition out of the current cycle.”
Deere & Company | | First Quarter | | ||||||
$ in millions, except per share amounts | | 2026 | | 2025 | | % Change | | ||
Net sales and revenues | | $ | 9,611 | | $ | 8,508 | | 13% | |
Net income | | $ | 656 | | $ | 869 | | -25% | |
Fully diluted EPS | | $ | 2.42 | | $ | 3.19 | | | |
Results for the prior period were affected by special items. See Note 1 to the financial statements for further details. The cost of additional tariffs for each segment is included in the “Production costs” category below.
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Production & Precision Agriculture | | First Quarter | | ||||||
$ in millions | | 2026 | | 2025 | | % Change | | ||
Net sales | | $ | 3,163 | | $ | 3,067 | | 3% | |
Operating profit | | $ | 139 | | $ | 338 | | -59% | |
Operating margin | | | 4.4% | | | 11.0% | | | |
Production & Precision Agriculture sales increased for the quarter as a result of the positive effects of foreign currency translation. Operating profit decreased primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.
Production & Precision Agriculture Operating Profit
First Quarter 2026 Compared to First Quarter 2025
$ in millions
5
Small Agriculture & Turf | | First Quarter | | ||||||
$ in millions | | 2026 | | 2025 | | % Change | | ||
Net sales | | $ | 2,168 | | $ | 1,748 | | 24% | |
Operating profit | | $ | 196 | | $ | 124 | | 58% | |
Operating margin | | | 9.0% | | | 7.1% | | | |
Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and price realization, partially offset by higher tariffs.
Small Agriculture & Turf Operating Profit
First Quarter 2026 Compared to First Quarter 2025
$ in millions
6
Construction & Forestry | | First Quarter | | ||||||
$ in millions | | 2026 | | 2025 | | % Change | | ||
Net sales | | $ | 2,670 | | $ | 1,994 | | 34% | |
Operating profit | | $ | 137 | | $ | 65 | | 111% | |
Operating margin | | | 5.1% | | | 3.3% | | | |
Construction & Forestry sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and production efficiencies, partially offset by higher tariffs.
Construction & Forestry Operating Profit
First Quarter 2026 Compared to First Quarter 2025
$ in millions
Financial Services | | First Quarter | | ||||||
$ in millions | | 2026 | | 2025 | | % Change | | ||
Net income | | $ | 244 | | $ | 230 | | 6% | |
Financial Services net income increased primarily due to favorable financing spreads and a lower provision for credit losses, partially offset by a favorable special item recorded in the prior period described in Note 1 to the financial statements.
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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 to up 5% | |
South America (Tractors & Combines) | | | | | | Down ~5% | |
Asia | | | | | | Flat to down 5% | |
| | | | | | | |
Construction & Forestry | | | | | | | |
U.S. & Canada: | | | | | | | |
Construction Equipment | | | | | | Up ~5% | |
Compact Construction Equipment | | | | | | Up ~5% | |
Global Forestry | | | | | | Flat | |
Global Roadbuilding | | | | | | Up ~5% | |
Deere Segment Outlook for Fiscal 2026
| | Currency | | Price | | ||
$ in millions | | Net Sales | | Translation | | Realization | |
Production & Precision Ag | | Down 5 to 10% | | +3.0% | | ~ +1.5% | |
Small Ag & Turf | | Up ~15% | | +2.0% | | ~ +2.0% | |
Construction & Forestry | | Up ~15% | | +2.0% | | ~ +2.5% | |
| | | | | | | |
Financial Services | | Net Income | | ~ $840 | | | |
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section 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 currently available information and 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, government farm programs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer 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 proposed 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 consequently the demand for the company’s equipment |
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| ● | rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities |
| ● | accurately forecasting customer demand for products and services and adequately managing inventory |
| ● | uncertainty of the company’s ability to sell products domestically or internationally, manage increased costs of production, absorb or pass on increased expenses, and accurately predict financial results and industry trends |
| ● | availability and price of raw materials, components, and whole goods |
| ● | delays or disruptions in the company’s supply chain |
| ● | changes in climate patterns, unfavorable weather events, and natural disasters |
| ● | suppliers’ and manufacturers’ business practices and compliance with laws applicable to topics 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 |
| ● | the ability to attract, develop, engage, and retain qualified employees |
| ● | ability to adapt in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology |
| ● | the ability to execute business strategies, including the company’s Smart Industrial Operating Model and refined Leap Ambitions |
| ● | dealer practices and their ability to manage new and used inventory, distribute the company’s products, and to provide support and service for precision technology solutions |
| ● | the ability to realize 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, environmental (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, 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, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers |
| ● | 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 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). 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.
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DEERE & COMPANY
FIRST QUARTER 2026 PRESS RELEASE
(In millions of dollars) Unaudited
| | Three Months Ended | | ||||||
| | February 1 | | January 26 | | % |
| ||
| | 2026 | | 2025 | | Change | | ||
Net sales and revenues: | | | | | | | | | |
Production & Precision Ag net sales | | $ | 3,163 | | $ | 3,067 |
| +3 | |
Small Ag & Turf net sales | | | 2,168 | | | 1,748 | | +24 | |
Construction & Forestry net sales | |
| 2,670 | |
| 1,994 |
| +34 | |
Financial Services revenues | |
| 1,384 | |
| 1,470 |
| -6 | |
Other revenues | |
| 226 | |
| 229 |
| -1 | |
Total net sales and revenues | | $ | 9,611 | | $ | 8,508 |
| +13 | |
| | | | | | | | | |
Operating profit: * | | | | | | | | | |
Production & Precision Ag | | $ | 139 | | $ | 338 |
| -59 | |
Small Ag & Turf | | | 196 | | | 124 | | +58 | |
Construction & Forestry | |
| 137 | |
| 65 |
| +111 | |
Financial Services | |
| 301 | |
| 266 |
| +13 | |
Total operating profit | |
| 773 | |
| 793 |
| -3 | |
Reconciling items ** | |
| 79 | |
| 103 |
| -23 | |
Income taxes | |
| (196) | |
| (27) |
| +626 | |
Net income attributable to Deere & Company | | $ | 656 | | $ | 869 |
| -25 | |
* 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.
10
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended February 1, 2026 and January 26, 2025
(In millions of dollars and shares except per share amounts) Unaudited
| | 2026 | | 2025 | ||
Net Sales and Revenues | | | | | | |
Net sales | | $ | 8,001 | | $ | 6,809 |
Finance and interest income | |
| 1,343 | |
| 1,453 |
Other income | |
| 267 | |
| 246 |
Total | |
| 9,611 | |
| 8,508 |
| | | | | | |
Costs and Expenses | | | | | | |
Cost of sales | |
| 6,280 | |
| 5,037 |
Research and development expenses | |
| 554 | |
| 526 |
Selling, administrative and general expenses | |
| 972 | |
| 972 |
Interest expense | |
| 719 | |
| 829 |
Other operating expenses | |
| 250 | |
| 249 |
Total | |
| 8,775 | |
| 7,613 |
| | | | | | |
Income of Consolidated Group before Income Taxes | |
| 836 | |
| 895 |
Provision for income taxes | |
| 196 | |
| 27 |
| | | | | | |
Income of Consolidated Group | |
| 640 | |
| 868 |
Equity in income (loss) of unconsolidated affiliates | |
| 15 | |
| (1) |
| | | | | | |
Net Income | |
| 655 | |
| 867 |
Less: Net loss attributable to noncontrolling interests | |
| (1) | |
| (2) |
Net Income Attributable to Deere & Company | | $ | 656 | | $ | 869 |
| | | | | | |
Per Share Data | | | | | | |
Basic | | $ | 2.43 | | $ | 3.20 |
Diluted | | | 2.42 | | | 3.19 |
Dividends declared | | | 1.62 | | | 1.62 |
Dividends paid | | | 1.62 | | | 1.47 |
| | | | | | |
Average Shares Outstanding | | | | | | |
Basic | |
| 270.3 | |
| 271.6 |
Diluted | |
| 270.9 | |
| 272.3 |
See Condensed Notes to Interim Consolidated Financial Statements.
11
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
| | February 1 | | November 2 | | January 26 | |||
| | 2026 | | 2025 | | 2025 | |||
Assets | | | | | | | | | |
Cash and cash equivalents | | $ | 6,798 | | $ | 8,276 | | $ | 6,601 |
Marketable securities | |
| 1,398 | |
| 1,411 | |
| 1,214 |
Trade accounts and notes receivable – net | |
| 5,993 | |
| 5,317 | |
| 4,931 |
Financing receivables – net | |
| 42,113 | |
| 44,575 | |
| 41,396 |
Financing receivables securitized – net | |
| 6,479 | |
| 6,831 | |
| 8,257 |
Other receivables | |
| 2,411 | |
| 2,403 | |
| 2,979 |
Equipment on operating leases – net | |
| 7,512 | |
| 7,600 | |
| 7,157 |
Inventories | |
| 8,286 | |
| 7,406 | |
| 7,744 |
Property and equipment – net | |
| 8,084 | |
| 8,079 | |
| 7,425 |
Goodwill | |
| 4,280 | |
| 4,188 | |
| 3,872 |
Other intangible assets – net | |
| 880 | |
| 892 | |
| 937 |
Retirement benefits | |
| 3,378 | |
| 3,273 | |
| 3,018 |
Deferred income taxes | |
| 2,268 | |
| 2,284 | |
| 1,852 |
Other assets | |
| 3,556 | |
| 3,461 | |
| 2,807 |
Assets held for sale | | | | | | | |
| 2,929 |
Total Assets | | $ | 103,436 | | $ | 105,996 | | $ | 103,119 |
| | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | |
| | | | | | | | | |
Liabilities | | | | | | | | | |
Short-term borrowings | | $ | 14,392 | | $ | 13,796 | | $ | 12,811 |
Short-term securitization borrowings | |
| 6,283 | |
| 6,596 | |
| 8,014 |
Accounts payable and accrued expenses | |
| 12,533 | |
| 13,909 | |
| 12,162 |
Deferred income taxes | |
| 434 | |
| 434 | |
| 448 |
Long-term borrowings | |
| 41,804 | |
| 43,544 | |
| 43,556 |
Retirement benefits and other liabilities | |
| 1,633 | |
| 1,710 | |
| 1,734 |
Liabilities held for sale | | | | | | | |
| 1,830 |
Total liabilities | |
| 77,079 | |
| 79,989 | |
| 80,555 |
| | | | | | | | | |
Redeemable noncontrolling interest | | | 50 | | | 51 | | | 78 |
| | | | | | | | | |
Stockholders’ Equity | | | | | | | | | |
Total Deere & Company stockholders’ equity | |
| 26,300 | |
| 25,950 | |
| 22,479 |
Noncontrolling interests | |
| 7 | |
| 6 | |
| 7 |
Total stockholders’ equity | |
| 26,307 | |
| 25,956 | |
| 22,486 |
Total Liabilities and Stockholders’ Equity | | $ | 103,436 | | $ | 105,996 | | $ | 103,119 |
See Condensed Notes to Interim Consolidated Financial Statements.
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DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended February 1, 2026 and January 26, 2025
(In millions of dollars) Unaudited
| | 2026 | | 2025 | ||
Cash Flows from Operating Activities | | | | | | |
Net income | | $ | 655 | | $ | 867 |
Adjustments to reconcile net income to net cash used for operating activities: | | | | | | |
Provision for credit losses | |
| 36 | |
| 69 |
Depreciation and amortization | |
| 590 | |
| 549 |
Impairments and other adjustments | | | | |
| (32) |
Share-based compensation expense | |
| 41 | |
| 28 |
Provision for deferred income taxes | |
| 18 | |
| 208 |
Changes in assets and liabilities: | | | | | | |
Receivables related to sales | |
| 350 | |
| 1,063 |
Inventories | |
| (746) | |
| (795) |
Accounts payable and accrued expenses | |
| (1,486) | |
| (1,845) |
Accrued income taxes payable/receivable | |
| (88) | |
| (540) |
Retirement benefits | |
| (194) | |
| (688) |
Other | |
| (66) | |
| (16) |
Net cash used for operating activities | |
| (890) | |
| (1,132) |
| | | | | | |
Cash Flows from Investing Activities | | | | | | |
Collections of receivables (excluding receivables related to sales) | |
| 8,098 | |
| 8,137 |
Proceeds from maturities and sales of marketable securities | |
| 144 | |
| 61 |
Proceeds from sales of equipment on operating leases | |
| 377 | | | 433 |
Cost of receivables acquired (excluding receivables related to sales) | |
| (6,023) | |
| (6,045) |
Purchases of marketable securities | | | (129) | | | (141) |
Purchases of property and equipment | |
| (256) | |
| (352) |
Cost of equipment on operating leases acquired | |
| (432) | |
| (439) |
Collections of receivables from unconsolidated affiliates | | | 105 | | | |
Collateral on derivatives – net | | | (11) | | | (191) |
Other | |
| (51) | |
| (47) |
Net cash provided by investing activities | |
| 1,822 | |
| 1,416 |
| | | | | | |
Cash Flows from Financing Activities | | | | | | |
Net proceeds (payments) in short-term borrowings (original maturities three months or less) | |
| 848 | |
| (1,484) |
Proceeds from borrowings issued (original maturities greater than three months) | |
| 780 | |
| 3,168 |
Payments of borrowings (original maturities greater than three months) | |
| (3,360) | |
| (1,753) |
Repurchases of common stock | |
| (302) | |
| (441) |
Dividends paid | |
| (441) | |
| (403) |
Other | |
| (15) | |
| (10) |
Net cash used for financing activities | |
| (2,490) | |
| (923) |
| | | | | | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | |
| 98 | |
| (87) |
| | | | | | |
Net Decrease in Cash, Cash Equivalents, and Restricted Cash | |
| (1,460) | |
| (726) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | |
| 8,533 | |
| 7,633 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | | $ | 7,073 | | $ | 6,907 |
See Condensed Notes to Interim Consolidated Financial Statements.
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DEERE & COMPANY | |
Condensed Notes to Interim Consolidated Financial Statements | |
(In millions of dollars) Unaudited | |
| (1) | Special Items |
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 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 three months ended January 26, 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.
| (2) | The consolidated financial statements represent the consolidation of all the company’s subsidiaries. The supplemental consolidating data in Note 3 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. |
14
DEERE & COMPANY
(3) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended February 1, 2026 and January 26, 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 | | $ | 8,001 | | $ | 6,809 | | | | | | | | | | | | | | $ | 8,001 | | $ | 6,809 | | |
Finance and interest income | |
| 120 | |
| 110 | | $ | 1,351 | | $ | 1,455 | | $ | (128) | | $ | (112) | | | 1,343 | | | 1,453 | 1 | |
Other income | |
| 213 | |
| 202 | |
| 137 | |
| 118 | |
| (83) | |
| (74) | |
| 267 | |
| 246 | 2, 3, 4 | |
Total | |
| 8,334 | |
| 7,121 | |
| 1,488 | |
| 1,573 | |
| (211) | |
| (186) | |
| 9,611 | |
| 8,508 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Costs and Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | |
| 6,291 | |
| 5,045 | | | | | | | | | (11) | | | (8) | | | 6,280 | | | 5,037 | 4 | |
Research and development expenses | |
| 554 | |
| 526 | | | | | | | | | | | | | | | 554 | | | 526 | | |
Selling, administrative and general expenses | |
| 806 | |
| 800 | |
| 168 | |
| 174 | |
| (2) | |
| (2) | |
| 972 | |
| 972 | 4 | |
Interest expense | |
| 93 | |
| 84 | |
| 664 | |
| 766 | |
| (38) | |
| (21) | |
| 719 | |
| 829 | 1 | |
Interest compensation to Financial Services | |
| 90 | |
| 91 | | | | | | | | | (90) | | | (91) | | | | |
| | 1 | |
Other operating expenses | |
| (46) | |
| (51) | |
| 366 | |
| 364 | |
| (70) | |
| (64) | |
| 250 | |
| 249 | 3, 4, 5 | |
Total | |
| 7,788 | |
| 6,495 | |
| 1,198 | |
| 1,304 | |
| (211) | |
| (186) | |
| 8,775 | |
| 7,613 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before Income Taxes | |
| 546 | |
| 626 | |
| 290 | |
| 269 | |
| | |
| | |
| 836 | |
| 895 | | |
Provision (credit) for income taxes | |
| 134 | |
| (13) | |
| 62 | |
| 40 | |
| | |
| | |
| 196 | |
| 27 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Income after Income Taxes | |
| 412 | |
| 639 | |
| 228 | |
| 229 | |
| | |
| | |
| 640 | |
| 868 | | |
Equity in income (loss) of unconsolidated affiliates | |
| (1) | |
| (2) | | | 16 | | | 1 | | | | | | | | | 15 | | | (1) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | |
| 411 | |
| 637 | |
| 244 | |
| 230 | |
| | |
| | |
| 655 | |
| 867 | | |
Less: Net loss attributable to noncontrolling interests | |
| (1) | |
| (2) | | | | | | | | | | | | | | | (1) | | | (2) | | |
Net Income Attributable to Deere & Company | | $ | 412 | | $ | 639 | | $ | 244 | | $ | 230 | | | | | | | | $ | 656 | | $ | 869 | | |
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.
15
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
| | EQUIPMENT | | FINANCIAL | | | | | | | ||||||||||||||||||||||||||||
| | OPERATIONS | | SERVICES | | ELIMINATIONS | | CONSOLIDATED | | | ||||||||||||||||||||||||||||
|
| Feb 1 |
| Nov 2 |
| Jan 26 |
| Feb 1 |
| Nov 2 |
| Jan 26 |
| Feb 1 |
| Nov 2 |
| Jan 26 |
| Feb 1 |
| Nov 2 |
| Jan 26 | | | ||||||||||||
|
| 2026 |
| 2025 |
| 2025 |
| 2026 |
| 2025 |
| 2025 |
| 2026 |
| 2025 |
| 2025 |
| 2026 |
| 2025 |
| 2025 |
| | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 4,769 | | $ | 6,340 | | $ | 4,840 | | $ | 2,029 | | $ | 1,936 | | $ | 1,761 | | | | | | | | | | | $ | 6,798 | | $ | 8,276 | | $ | 6,601 | | |
Marketable securities | | | 146 | |
| 217 | |
| 114 | |
| 1,252 | |
| 1,194 | |
| 1,100 | |
| | |
| | |
| | |
| 1,398 | |
| 1,411 | |
| 1,214 | | |
Receivables from Financial Services | |
| 4,132 | |
| 4,649 | |
| 1,826 | | | | | | | | | | | $ | (4,132) | | $ | (4,649) | | $ | (1,826) | | | | | | | | | | 6 | |
Trade accounts and notes receivable – net | |
| 1,284 | |
| 1,316 | |
| 1,053 | |
| 6,609 | |
| 5,900 | |
| 5,812 | |
| (1,900) | |
| (1,899) | |
| (1,934) | |
| 5,993 | |
| 5,317 | |
| 4,931 | 7 | |
Financing receivables – net | |
| 105 | |
| 88 | |
| 78 | |
| 42,008 | |
| 44,487 | |
| 41,318 | |
| | |
| | |
| | |
| 42,113 | |
| 44,575 | |
| 41,396 | | |
Financing receivables securitized – net | | | | | | 1 | | | 2 | |
| 6,479 | |
| 6,830 | |
| 8,255 | |
| | |
| | |
| | |
| 6,479 | |
| 6,831 | |
| 8,257 | | |
Other receivables | |
| 1,841 | |
| 1,809 | |
| 2,367 | |
| 621 | |
| 658 | |
| 654 | |
| (51) | |
| (64) | |
| (42) | |
| 2,411 | |
| 2,403 | |
| 2,979 | 8 | |
Equipment on operating leases – net | | | | | | | | | | |
| 7,512 | |
| 7,600 | |
| 7,157 | |
| | |
| | |
| | |
| 7,512 | |
| 7,600 | |
| 7,157 | | |
Inventories | |
| 8,286 | |
| 7,406 | |
| 7,744 | | | | | | | | | | | | | | | | | | | | | 8,286 | | | 7,406 | | | 7,744 | | |
Property and equipment – net | |
| 8,053 | |
| 8,047 | |
| 7,392 | |
| 31 | |
| 32 | |
| 33 | |
| | |
| | |
| | |
| 8,084 | |
| 8,079 | |
| 7,425 | | |
Goodwill | |
| 4,280 | |
| 4,188 | |
| 3,872 | | | | | | | | | | | | | | | | | | | | | 4,280 | | | 4,188 | | | 3,872 | | |
Other intangible assets – net | |
| 880 | |
| 892 | |
| 937 | | | | |
| | |
| | | | | |
| | |
| | | | 880 | |
| 892 | |
| 937 | | |
Retirement benefits | |
| 3,282 | |
| 3,181 | |
| 2,933 | |
| 98 | |
| 94 | |
| 86 | |
| (2) | |
| (2) | |
| (1) | |
| 3,378 | |
| 3,273 | |
| 3,018 | | |
Deferred income taxes | |
| 2,476 | |
| 2,507 | |
| 2,247 | |
| 45 | |
| 46 | |
| 42 | |
| (253) | |
| (269) | |
| (437) | |
| 2,268 | |
| 2,284 | |
| 1,852 | 9 | |
Other assets | |
| 2,371 | |
| 2,218 | |
| 2,295 | |
| 1,220 | |
| 1,244 | |
| 539 | |
| (35) | |
| (1) | |
| (27) | |
| 3,556 | |
| 3,461 | |
| 2,807 | | |
Assets held for sale | | | | | | | |
| | | | | | | | | | 2,929 | | | | | | | | | | | | | |
| | |
| 2,929 | | |
Total Assets | | $ | 41,905 | | $ | 42,859 | | $ | 37,700 | | $ | 67,904 | | $ | 70,021 | | $ | 69,686 | | $ | (6,373) | | $ | (6,884) | | $ | (4,267) | | $ | 103,436 | | $ | 105,996 | | $ | 103,119 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term borrowings | | $ | 366 | | $ | 414 | | $ | 1,101 | | $ | 14,026 | | $ | 13,382 | | $ | 11,710 | | | | | | | | | | | $ | 14,392 | | $ | 13,796 | | $ | 12,811 | | |
Short-term securitization borrowings | | | | | | 1 | | | 1 | |
| 6,283 | |
| 6,595 | |
| 8,013 | |
| | |
| | |
| | |
| 6,283 | |
| 6,596 | |
| 8,014 | | |
Payables to equipment operations | |
| | |
| | |
| | |
| 4,132 | |
| 4,649 | |
| 1,826 | | $ | (4,132) | | $ | (4,649) | | $ | (1,826) | |
| | |
| | |
| | 6 | |
Accounts payable and accrued expenses | |
| 11,387 | |
| 12,757 | |
| 10,869 | |
| 3,132 | |
| 3,116 | |
| 3,296 | |
| (1,986) | |
| (1,964) | |
| (2,003) | |
| 12,533 | |
| 13,909 | |
| 12,162 | 7, 8 | |
Deferred income taxes | |
| 343 | |
| 347 | |
| 405 | |
| 344 | |
| 356 | |
| 480 | |
| (253) | |
| (269) | |
| (437) | |
| 434 | |
| 434 | |
| 448 | 9 | |
Long-term borrowings | |
| 8,897 | |
| 8,756 | |
| 8,507 | |
| 32,907 | |
| 34,788 | |
| 35,049 | |
| | |
| | |
| | |
| 41,804 | |
| 43,544 | |
| 43,556 | | |
Retirement benefits and other liabilities | |
| 1,568 | |
| 1,646 | |
| 1,668 | |
| 67 | |
| 66 | |
| 67 | |
| (2) | |
| (2) | |
| (1) | |
| 1,633 | |
| 1,710 | |
| 1,734 | | |
Liabilities held for sale | | | | | | | |
| | | | | | | | | | 1,830 | | | | | | | | | | | | | |
| | |
| 1,830 | | |
Total liabilities | |
| 22,561 | |
| 23,921 | |
| 22,551 | |
| 60,891 | |
| 62,952 | |
| 62,271 | |
| (6,373) | |
| (6,884) | |
| (4,267) | |
| 77,079 | |
| 79,989 | |
| 80,555 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable noncontrolling interest | | | 50 | | | 51 | | | 78 | | | | | | | | | | | | | | | | | | | | | 50 | | | 51 | | | 78 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Deere & Company stockholders’ equity | |
| 26,300 | |
| 25,950 | |
| 22,479 | |
| 7,013 | |
| 7,069 | |
| 7,415 | |
| (7,013) | |
| (7,069) | |
| (7,415) | |
| 26,300 | |
| 25,950 | |
| 22,479 | 10 | |
Noncontrolling interests | |
| 7 | |
| 6 | |
| 7 | | | | | | | | | | | | | | | | | | | | | 7 | | | 6 | | | 7 | | |
Financial Services' equity | | | (7,013) | | | (7,069) | | | (7,415) | | | | | | | | | | | | 7,013 | | | 7,069 | | | 7,415 | | | | | | | | | | 10 | |
Adjusted total stockholders' equity | |
| 19,294 | |
| 18,887 | |
| 15,071 | |
| 7,013 | |
| 7,069 | |
| 7,415 | |
| | |
| | |
| | |
| 26,307 | |
| 25,956 | |
| 22,486 | | |
Total Liabilities and Stockholders’ Equity | | $ | 41,905 | | $ | 42,859 | | $ | 37,700 | | $ | 67,904 | | $ | 70,021 | | $ | 69,686 | | $ | (6,373) | | $ | (6,884) | | $ | (4,267) | | $ | 103,436 | | $ | 105,996 | | $ | 103,119 | | |
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.
16
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Three Months Ended February 1, 2026 and January 26, 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 | | $ | 411 | | $ | 637 | | $ | 244 | | $ | 230 | | | | | | | | $ | 655 | | $ | 867 | | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for credit losses | |
| 1 | |
| 3 | |
| 35 | |
| 66 | |
| | |
| | |
| 36 | |
| 69 | | |
Depreciation and amortization | |
| 342 | |
| 319 | |
| 274 | |
| 265 | | $ | (26) | | $ | (35) | |
| 590 | |
| 549 | 11 | |
Impairments and other adjustments | | | | |
| | | | | | | (32) | | | | | | | | | | | | (32) | | |
Share-based compensation expense | | | | | | | | | | | | | | | 41 | | | 28 | | | 41 | | | 28 | 12 | |
Distributed earnings of Financial Services | |
| 350 | |
| 162 | |
| | |
| | |
| (350) | |
| (162) | |
| | |
| | 13 | |
Provision (credit) for deferred income taxes | |
| 29 | |
| (17) | |
| (11) | |
| 225 | |
| | |
| | |
| 18 | |
| 208 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Receivables related to sales | |
| 18 | |
| 140 | | | | | | | | | 332 | | | 923 | | | 350 | | | 1,063 | 14, 16 | |
Inventories | |
| (728) | |
| (784) | | | | | | | | | (18) | | | (11) | | | (746) | | | (795) | 15 | |
Accounts payable and accrued expenses | |
| (1,410) | |
| (2,073) | |
| (74) | |
| 6 | |
| (2) | |
| 222 | |
| (1,486) | |
| (1,845) | 16 | |
Accrued income taxes payable/receivable | |
| (71) | |
| (479) | |
| (17) | |
| (61) | |
| | |
| | |
| (88) | |
| (540) | | |
Retirement benefits | |
| (191) | |
| (647) | |
| (3) | |
| (41) | |
| | |
| | |
| (194) | |
| (688) | | |
Other | |
| (94) | |
| (136) | |
| 49 | |
| 117 | |
| (21) | |
| 3 | |
| (66) | |
| (16) | 11, 12, 15 | |
Net cash provided by (used for) operating activities | |
| (1,343) | |
| (2,875) | |
| 497 | |
| 775 | |
| (44) | |
| 968 | |
| (890) | |
| (1,132) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collections of receivables (excluding receivables related to sales) | | | | | | | |
| 8,251 | |
| 8,345 | |
| (153) | |
| (208) | |
| 8,098 | |
| 8,137 | 14 | |
Proceeds from maturities and sales of marketable securities | | | 75 | | | 9 | |
| 69 | |
| 52 | |
| | |
| | |
| 144 | |
| 61 | | |
Proceeds from sales of equipment on operating leases | | | | | | | | | 377 | | | 433 | | | | | | | | | 377 | | | 433 | | |
Cost of receivables acquired (excluding receivables related to sales) | | | | | | | |
| (6,044) | |
| (6,093) | |
| 21 | |
| 48 | |
| (6,023) | |
| (6,045) | 14 | |
Purchases of marketable securities | | | | | | | | | (129) | | | (141) | | | | | | | | | (129) | | | (141) | | |
Purchases of property and equipment | |
| (256) | |
| (352) | |
| | |
| | |
| | |
| | |
| (256) | |
| (352) | | |
Cost of equipment on operating leases acquired | | | | | | | |
| (456) | |
| (454) | |
| 24 | |
| 15 | |
| (432) | |
| (439) | 15 | |
Decrease in trade and wholesale receivables | | | | | | | |
| 198 | |
| 985 | |
| (198) | |
| (985) | |
| | |
| | 14 | |
Collections of receivables from unconsolidated affiliates | | | | | | | | | 105 | | | | | | | | | | | | 105 | | | | | |
Collateral on derivatives – net | | | 1 | | | | | | (12) | | | (191) | | | | | | | | | (11) | | | (191) | | |
Other | |
| (33) | |
| (51) | |
| (18) | |
| 4 | |
| | |
| | |
| (51) | |
| (47) | | |
Net cash provided by (used for) investing activities | |
| (213) | |
| (394) | |
| 2,341 | |
| 2,940 | |
| (306) | |
| (1,130) | |
| 1,822 | |
| 1,416 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net proceeds (payments) in short-term borrowings (original maturities three months or less) | |
| (38) | |
| 176 | |
| 886 | |
| (1,660) | |
| | |
| | |
| 848 | |
| (1,484) | | |
Change in intercompany receivables/payables | |
| 613 | |
| 1,222 | |
| (613) | |
| (1,222) | |
| | |
| | |
| | |
| | | |
Proceeds from borrowings issued (original maturities greater than three months) | |
| 166 | |
| 2,032 | |
| 614 | |
| 1,136 | |
| | |
| | |
| 780 | |
| 3,168 | | |
Payments of borrowings (original maturities greater than three months) | |
| (78) | |
| (12) | |
| (3,282) | |
| (1,741) | |
| | |
| | |
| (3,360) | |
| (1,753) | | |
Repurchases of common stock | |
| (302) | |
| (441) | | | | | | | | | | | | | | | (302) | | | (441) | | |
Dividends paid | |
| (441) | |
| (403) | |
| (350) | |
| (162) | |
| 350 | |
| 162 | |
| (441) | |
| (403) | 13 | |
Other | |
| (11) | |
| (7) | |
| (4) | |
| (3) | |
| | |
| | |
| (15) | |
| (10) | | |
Net cash provided by (used for) financing activities | |
| (91) | |
| 2,567 | |
| (2,749) | |
| (3,652) | |
| 350 | |
| 162 | |
| (2,490) | |
| (923) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | |
| 78 | |
| (74) | |
| 20 | |
| (13) | |
| | |
| | |
| 98 | |
| (87) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | |
| (1,569) | |
| (776) | |
| 109 | |
| 50 | |
| | |
| | |
| (1,460) | |
| (726) | | |
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 | | $ | 4,795 | | $ | 4,867 | | $ | 2,278 | | $ | 2,040 | | | | | | | | $ | 7,073 | | $ | 6,907 | | |
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
| 1Q 2026 Earnings Call 19 February 2026 Exhibit 99.2 (Furnished herewith) |
| 2 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Forward-Looking Statements This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “guidance,” “project,” “target,” “outlook,” “prospects,” “expect,” “estimate,” “will,” “goal,” “plan,” “anticipate,” “intend,” “predict,” “believe,” “likely,” “future,” “could,” “may,” or other similar words or phrases, including the negative variations of such words or phrases. Examples of forward-looking statements include, among others, comments and information concerning the Company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance, acquisitions and divestitures of businesses, anticipated transaction costs, the integration of new businesses, anticipated benefits of acquisitions, and other factors that impact the Company’s businesses and customers. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, changes in circumstances, and other factors that are difficult to predict and many of which are outside of the Company’s control causing actual results to differ materially from those projected in these forward-looking statements. Among these factors are risks related to the agricultural business cycle, which can be unpredictable and is affected by a variety of factors, such as farm income; macroeconomic conditions due to slower economic growth or a recession; the uncertainty of government policies and actions with respect to the global trade environment including increased and proposed tariffs; exposure to risks and events beyond our control in countries in which we operate, such as economic and political instability, worldwide demand for food and different forms of renewable energy impacting the price of farm commodities; rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities; accurately forecasting customer demand for products and services, and adequately managing inventory; availability and price of raw materials, components, and whole goods; delays or disruptions in our supply chain; changes in climate patterns, unfavorable weather events, and natural disasters; higher interest rates and currency fluctuations; negative economic conditions in the financial industry which could impact our financial services segment; the ability to execute business strategies, including our Smart Industrial Operating Model and Leap Ambitions ; the complexity of our products and the risks associated with not realizing the anticipated benefits of our investments, such as customer acceptance and the pace of adopting our products and technologies; dealer practices and their ability to manage new and used inventory, distribute our products, and provide support and service for precision technology solutions; the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successful integration; negative claims or publicity that damage our reputation or brand; the ability to attract, develop, engage, and retain qualified employees; 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 our information technology infrastructure and products; leveraging artificial intelligence and machine learning within our business processes; changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with these laws and regulations; investigations, claims, lawsuits, or other legal proceedings. For a discussion of some of these risks and uncertainties see “Item 1A Risk Factors” in our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the U.S. Securities and Exchange Commission. Investors should refer to and consider the information on risks and uncertainties in addition to the information presented here. All forward-looking statements made in this earnings call and accompanying materials are based only on information currently available and speaks only as of the date on which it is made. You should not place undue reliance on forward-looking statements. The Company, except as required by law, undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise. This earnings call and accompanying materials may contain non-GAAP financial measures. Non-GAAP measures should be viewed as a supplement to, and not in isolation from, or as a substitute for the Company’s GAAP measures of performance and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. 19 |
| 3 John Deere | 1Q 2026 Earnings Call | February 19, 2026 1Q 2026 Results ($ millions except where noted) $8,508 $9,611 1Q 2025 1Q 2026 $6,809 $8,001 1Q 2025 1Q 2026 $869 $656 1Q 2025 1Q 2026 $3.19 $2.42 1Q 2025 1Q 2026 18% Net Sales and Revenues Net Sales (Equipment Operations) Net Income (attributable to Deere & Company) Diluted EPS ($ per share) 13% 25% 24% 20 |
| 4 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Production & Precision Ag 1Q 2026 Results $ in millions $3,067 $3,163 1Q 2025 1Q 2026 Net Sales 3% Operating Profit Comparison $0 $338 ($61) ($4) ($39) ($48) ($74) $6 $21 $139 1Q 2025 Volume/ Mix Price Currency Warranty Production Costs SA&G/ R&D Special Items Other 1Q 2026 21 |
| 5 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Small Ag & Turf 1Q 2026 Results $ in millions $1,748 $2,168 1Q 2025 1Q 2026 Net Sales 24% Operating Profit Comparison $0 $124 $148 $35 ($14) $10 ($99) ($23) $15 $196 1Q 2025 Volume/ Mix Price Currency Warranty Production Costs SA&G/ R&D Special Items Other 1Q 2026 22 |
| 6 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Ag and Turf Industry Outlook (in units) – FY 2026 Source: Deere & Company forecast as of 19 February 2026 U.S. and CANADA LARGE AG Down 15-20% EUROPE AG Flat to up 5% SOUTH AMERICA AG (tractors and combines) Down ~5% U.S. and CANADA SMALL AG and TURF Flat to up 5% ASIA AG Flat to down 5% 23 |
| 7 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Production & Precision Ag Business Segment Outlook $ in millions Source: Deere & Company forecast as of 19 February 2026 15.4% FY 2025 FY 2026 Fcst $17,311 FY 2025 FY 2026 Fcst Net Sales Operating Margin 11-13% 5-10% 24 |
| 8 John Deere | 1Q 2026 Earnings Call | February 19, 2026 $10,224 FY 2025 FY 2026 Fcst Small Ag & Turf Business Segment Outlook $ in millions Source: Deere & Company forecast as of 19 February 2026 11.8% FY 2025 FY 2026 Fcst Net Sales Operating Margin ~15% 13.5-15% 25 |
| 9 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Construction & Forestry 1Q 2026 Results $ in millions $1,994 $2,670 1Q 2025 1Q 2026 Net Sales 34% Operating Profit Comparison $0 $65 $162 ($7) ($8) ($3) ($77) ($13) $18 $137 1Q 2025 Volume/ Mix Price Currency Warranty Production Costs SA&G/ R&D Special Items Other 1Q 2026 26 |
| 10 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Construction & Forestry Industry Outlook (in units) – FY 2026 Source: Deere & Company forecast as of 19 February 2026 GLOBAL ROADBUILDING Up ~5% U.S. and CANADA CONSTRUCTION EQUIPMENT Up ~5% U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT Up ~5% GLOBAL FORESTRY Flat 27 |
| 11 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Construction & Forestry Business Segment Outlook $ in millions Source: Deere & Company forecast as of 19 February 2026 9.0% FY 2025 FY 2026 Fcst $11,382 FY 2025 FY 2026 Fcst Net Sales Operating Margin ~15% 9-11% 28 |
| 12 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Financial Services Net Income – Results and Outlook $ in millions Source: Deere & Company forecast as of 19 February 2026 $230 $244 1Q 2025 1Q 2026 Quarter Results Fiscal Year Outlook $890 $840 FY 2025 FY 2026 Fcst ~ 29 |
| 13 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Deere & Company Outlook Effective Tax Rate* Net Income (attributable to Deere & Co.) $4.5-5.0B 25-27% FY 2026 FORECAST Net Operating Cash Flow* $4.5-5.5B *Equipment Operations Source: Deere & Company forecast as of 19 February 2026 Other Research and Development Expenses* Capital Expenditures* Up slightly ~$1.4B 30 |
| 14 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Appendix 31 |
| 15 John Deere | 1Q 2026 Earnings Call | February 19, 2026 January 2026 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 16% In-line with the industry 2WD Tractors (40 < 100 PTO hp) 2% Up low single digit 2WD Tractors (100+ PTO hp) 17% Less than the industry 4WD Tractors 32% More than the industry Combines 15% More than the industry Deere Dealer Inventories*** U.S. and Canada Ag 2026 2025 2WD Tractors (100+ PTO hp) 27% 34% Combines 18% 11% * As reported by the Association of Equipment Manufacturers ** As reported to the Association of Equipment Manufacturers *** In units as a % of trailing 12 months retail sales, as reported to the Association of Equipment Manufacturers 32 |
| 16 John Deere | 1Q 2026 Earnings Call | February 19, 2026 January 2026 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Double digits Combines Double digits * Based on internal sales reports Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Single digit Earthmoving and Forestry Double digits 33 |
| 17 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Deere Use-of-Cash Priorities SHARE REPURCHASE Manage the balance sheet, including liquidity, to support a rating that provides access to low-cost and readily available short- and long-term funding mechanisms (reflects the strategic nature of our financial services operation) Fund value-creating investments in our businesses, including organic and inorganic activities. Consistently and moderately raise dividend targeting a 25-35% payout ratio of mid-cycle earnings Repurchase shares to deploy remaining free cash flow to shareholders over the business cycle COMMITTED TO “A” RATING FUND OPERATING & GROWTH NEEDS COMMON STOCK DIVIDEND CASH FROM OPERATIONS Equipment Operations Cash Flow from Operating Activities 34 |
| 18 John Deere | 1Q 2026 Earnings Call | February 19, 2026 NEW GENERATION 210, 230 & 260 P-TIER DESIGNED, DEVELOPED, AND MANUFACTURED IN THE UNITED STATES CONEXPO 2026 Las Vegas, NV March 3rd-7 th 35 |
| 19 John Deere | 1Q 2026 Earnings Call | February 19, 2026 View the 2025 Business Impact Report https://about.deere.com/en-us/sustainability 36 |
| 20 John Deere | 1Q 2026 Earnings Call | February 19, 2026 Deere & Company’s 2Q 2026 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 21 May 2026. 37 |
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