Aug 20, 2026, 6:00 AM ETIndustrials

Deere & Company — Third Quarter 2026 Earnings Summary

DEDEERE & CO

Financial Performance

Net income for the third quarter ended August 2, 2026, was $1.379 billion ($5.10 per share), a 7% increase compared to $1.289 billion ($4.75 per share) in the same period of 2025.
Net income for the first nine months of 2026 was $3.808 billion ($14.06 per share), a 4% decrease compared to $3.962 billion ($14.57 per share) in the prior year.
Worldwide net sales and revenues increased 5% to $12.608 billion in the third quarter and 7% to $35.589 billion for the first nine months.
Net sales (excluding finance and interest income) were $10.999 billion for the quarter and $30.779 billion for the nine-month period.
Total operating profit was $1.856 billion for the quarter (up 18%) and $4.867 billion for the nine months (up 4%).
Tariff recoveries recorded were $110 million in the third quarter and $382 million for the first nine months of 2026.
Cash provided by operating activities for the nine months ended August 2, 2026, was $3.250 billion, compared to $3.464 billion in the prior year.
Cash used for financing activities was $1.828 billion for the nine months, including $697 million in repurchases of common stock and $1.316 billion in dividends paid.
Cash and cash equivalents at August 2, 2026, were $8.928 billion.
Total liabilities were $79.566 billion, with long-term borrowings at $40.626 billion and short-term borrowings at $17.115 billion.

Full-year 2026 net income guidance was improved to a range of $4.75 billion to $5.00 billion.
Management believes 2026 will mark the bottom of the current agricultural equipment cycle.
Fiscal 2026 industry outlook for Agriculture & Turf:
- U.S. & Canada Large Ag: Down 15% to 20%.
- U.S. & Canada Small Ag & Turf: Flat to up 5%.
- Europe: Flat.
- South America (Tractors & Combines): Down 15% to 20%.
- Asia: Flat.
- U.S. & Canada Construction Equipment: Up 5% to 10%.
- U.S. & Canada Compact Construction Equipment: Up ~5%.
- Global Forestry: Down ~10%.
- Global Roadbuilding: Up ~10%.
Fiscal 2026 segment outlook for Net Sales:
- Production & Precision Agriculture: Down ~10% (currency translation +2.5%, price realization ~+1.0%).
- Small Ag & Turf: Up ~15% (currency translation +0.5%, price realization ~+1.5%).
- Construction & Forestry: Up ~20% (currency translation +1.5%, price realization ~+3.0%).
Financial Services net income outlook for 2026 is approximately $870 million.

Production & Precision Agriculture: Net sales decreased 6% to $3.998 billion; operating profit decreased 9% to $527 million; operating margin was 13.2%. Lower shipment volumes were partially offset by favorable price realization and foreign currency translation.
Small Agriculture & Turf: Net sales increased 12% to $3.383 billion; operating profit increased 28% to $622 million; operating margin was 18.4%. Growth driven by higher shipment volumes and favorable price realization.
Construction & Forestry: Net sales increased 18% to $3.618 billion; operating profit increased 84% to $436 million; operating margin was 12.1%. Growth driven by higher shipment volumes and favorable price realization, partially offset by higher selling, administrative, and general (SA&G) and R&D costs.
Financial Services: Net income increased 7% to $219 million, driven by favorable financing spreads, partially offset by a lower average portfolio.
Acquisitions: In 2026, the company acquired Tenna LLC for $439 million (assigned to Construction & Forestry) and other small-scale businesses for $16 million (assigned to Production & Precision Agriculture, Small Ag & Turf, and Construction & Forestry).

Performance was supported by stable U.S. market conditions.
The company managed softer conditions in Brazil and Europe.
Early order program trends, improving used-equipment inventories, and increasing customer adoption of advanced technologies were cited as indicators of market positioning.
The company noted the agricultural business cycle is affected by farm income, international trade, world grain stocks, crop yields, and commodity prices.

Risks include the unpredictability of the agricultural business cycle, construction and forestry activity fluctuations, and macroeconomic conditions such as inflation, interest rate volatility, and geopolitical conflicts.
Uncertainty regarding government policies, tariffs, and trade regulations.
Supply chain disruptions, raw material availability, and production cost increases.
Climate patterns, weather events, and natural disasters.
Cybersecurity threats, technology failures, and data privacy regulations.
Labor relations, workforce retention, and the impact of workforce reductions.
Regulatory compliance across various jurisdictions including environmental, safety, and product liability laws.

John C. May, Chairman and CEO, stated the company delivered a "strong quarter" reflecting "disciplined execution" and "continued resilience."
Management expressed confidence that Deere is "well positioned for long-term value creation" based on order trends and technology adoption.
The tone emphasized the ability to manage regional variances and the strength of the business portfolio.

Dividends declared and paid for the third quarter were $1.62 per share; dividends for the first nine months were $4.86 per share.
The company deconsolidated Banco John Deere S.A. (BJD) in February 2025 following a partnership with Banco Bradesco S.A., now accounting for the investment using the equity method.
Special items in the prior year included a $61 million impairment charge related to overseas battery operations and a $32 million gain related to the BJD valuation allowance.
The company recorded $697 million in stock repurchases during the first nine months of 2026.
Goodwill increased to $4.466 billion as of August 2, 2026, from $4.188 billion as of November 2, 2025.