10-QPeriod: Q3 FY2026

DEERE & CO Quarterly Report for Q3 Ended Aug 2, 2026

Filed August 27, 2026For Securities:DE

Summary

Deere & Company (DE) reported solid revenue growth for the third quarter and nine months ended August 2, 2026. Net sales and revenues increased by 5% and 7% respectively, driven by higher sales volumes, favorable price realization, and positive foreign currency translation. While net income for the quarter saw a modest increase of 7%, the nine-month period experienced a decrease of 4%, primarily due to unfavorable tax impacts and prior period special tax items benefiting last year's results. The company's operational performance shows strength in the Small Agriculture & Turf (SAT) and Construction & Forestry (CF) segments, with significant increases in net sales and operating profit. The Production & Precision Agriculture (PPA) segment saw a decline in sales and operating profit due to lower shipment volumes and increased production costs, despite some offset from favorable pricing and currency impacts. The Financial Services segment maintained stable net income, benefiting from favorable financing spreads.

Key Highlights

  • 1Total net sales and revenues increased by 5% to $12.6 billion for the third quarter and 7% to $35.6 billion for the nine months ended August 2, 2026, compared to the prior year periods.
  • 2Net income attributable to Deere & Company increased by 7% to $1.38 billion for the third quarter but decreased by 4% to $3.81 billion for the nine months ended August 2, 2026.
  • 3Diluted earnings per share were $5.10 for the third quarter and $14.06 for the nine months ended August 2, 2026.
  • 4The Construction & Forestry segment showed strong performance with an 18% increase in net sales for the third quarter and a 26% increase for the nine months, accompanied by significant operating profit growth.
  • 5The Small Agriculture & Turf segment also demonstrated robust growth, with net sales up 12% for the quarter and 16% for the nine months, and operating profit increasing by 28% and 30% respectively.
  • 6The Production & Precision Agriculture segment experienced a sales decline of 6% for the quarter and 7% for the nine months, with operating profit decreasing by 9% and 34% respectively, primarily due to lower shipment volumes and higher production costs.
  • 7Deere & Company's balance sheet remains strong with total assets of $107.6 billion as of August 2, 2026, and total stockholders' equity of $28.0 billion.

Frequently Asked Questions

Deere & Company's revenue growth was driven by higher sales volumes, favorable price realization, and positive foreign currency translation. These factors contributed to a 5% increase in net sales and revenues for the third quarter and a 7% increase for the nine months ended August 2, 2026.

While net income increased for the third quarter, the nine-month period saw a decrease primarily due to unfavorable tax impacts. The prior year's nine-month results were positively impacted by special tax items, making the year-over-year comparison appear less favorable in the current period. Additionally, increased production costs, particularly for materials, also impacted profitability.

The Construction & Forestry (CF) and Small Agriculture & Turf (SAT) segments showed strong performance with significant increases in net sales and operating profit, driven by higher volumes and pricing. The Production & Precision Agriculture (PPA) segment experienced a decline in sales and profit due to lower shipment volumes and higher production costs. The Financial Services segment maintained stable net income, benefiting from favorable financing spreads.

For fiscal year 2026, Deere expects overall net sales to increase compared to 2025. Large agriculture equipment sales are anticipated to decrease in North America and South America, while Small Agriculture & Turf and Construction & Forestry sales are expected to improve. The company anticipates continued pressure from elevated input costs and market uncertainty in the agriculture sector.