Deere & Company

08/20/2026 | Press release | Distributed by Public on 08/20/2026 04:04

Deere Reports Third Quarter Net Income of $1.379 Billion (Form 8-K)

Deere Reports Third Quarter Net Income of $1.379 Billion

● 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, Illinois (August 20, 2026) - Deere & Company 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."

4

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.

Production & Precision Agriculture Operating Profit

Third Quarter 2026 Compared to Third Quarter 2025

$ in millions

5

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.

Small Agriculture & Turf Operating Profit

Third Quarter 2026 Compared to Third Quarter 2025

$ in millions

6

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.

Construction & Forestry Operating Profit

Third Quarter 2026 Compared to Third Quarter 2025

$ in millions

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.

7

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 "

Deere & Company published this content on August 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 20, 2026 at 10:05 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]