Deere & Company (DE) Q1 2026 Financial Results Summary

MOLINE, Illinois (February 19, 2026) — Deere & Company reported its financial results for the first quarter ended February 1, 2026. Below is a summary of key financial metrics and highlights from the report:

Financial Performance Highlights

• Net Income: $656 million ($2.42 per share) in Q1 2026, compared to $869 million ($3.19 per share) in Q1 2025, representing a 25% decrease in net income.
• Net Sales and Revenues: Increased by 13% to $9,611 million from $8,508 million in the prior year.

Segment Details

• Production & Precision Agriculture
  • Net Sales: Increased to $3,163 million in Q1 2026 from $3,067 million in Q1 2025, a 3% increase.
  • Operating Profit: Decreased to $139 million, down 59% from $338 million a year ago.
  • Operating Margin: Reduced to 4.4% from 11.0%.
• Small Agriculture & Turf
  • Net Sales: Rose sharply by 24% to $2,168 million from $1,748 million.
  • Operating Profit: Increased 58% to $196 million from $124 million.
  • Operating Margin: Improved to 9.0% from 7.1%.
• Construction & Forestry
  • Net Sales: Grew by 34% to $2,670 million from $1,994 million.
  • Operating Profit: More than doubled to $137 million, up 111% from $65 million.
  • Operating Margin: Increased to 5.1% from 3.3%.
• Financial Services
  • Net Income: Increased by 6% to $244 million from $230 million in the previous year.

Cost Structure

• Total Costs and Expenses: Increased by 15.2% to $8,775 million compared to $7,613 million in Q1 2025 due to rising production and operating expenses.

Dividends and Share Repurchase

• Dividends Declared: Declared a quarterly dividend of $1.62, unchanged from Q1 2025.
• Share Repurchase: Reported repurchases of common stock amounting to $302 million during the quarter.

Future Outlook

• Net Income Guidance for Fiscal 2026: Increased to a range of $4.5 billion to $5.0 billion.
• Industry Outlook:
  • Large Agriculture: Down 15% to 20%.
  • Small Agriculture & Turf: Flat to up 5%.
  • Construction Equipment: Up ~5%.

Key Financial Metrics

Note: All amounts are in millions.

Metric	Q1 2026	Q1 2025	% Change
Net Sales	$9,611 million	$8,508 million	+13%
Net Income	$656 million	$869 million	-25%
Fully Diluted Earnings per Share	$2.42	$3.19
Operating Profit – Precision Ag	$139 million	$338 million	-59%
Operating Profit – Small Ag & Turf	$196 million	$124 million	+58%
Operating Profit – Construction	$137 million	$65 million	+111%

Overall, Deere & Company’s Q1 2026 results reflect a robust increase in sales driven by its Small Agriculture & Turf and Construction segments, although net income took a notable dip compared to the previous year. The company’s outlook remains cautiously optimistic, with expectations of recovery for various segments by the end of fiscal 2026.

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)

Note: All amounts are in millions.

	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	836	895
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

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars)

Note: All amounts are in millions.

	February 1 2026	November 2 2025	January 26 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