Deere & Company (DE) Q1 2026 earnings summary

Executive summary

• Net sales and revenues for the first quarter rose 13% year-over-year to $9.61 billion, with equipment operations net sales up 18% to $8.51 billion, driven by higher shipment volumes and favorable currency translation.

• Net income attributable to the company was $656 million ($2.42 per share), down 25% from $869 million ($3.19 per share) year-over-year, primarily due to higher tariffs and the absence of prior period tax benefits.

• All business segments delivered higher net sales year-over-year, with Small Ag & Turf and Construction & Forestry growing top-line by over 20%.

• Order books strengthened and shipments were ahead of plan, with resilience across diverse customer segments and geographies.

• Management views 2026 as the bottom of the current cycle, expecting a foundation for accelerated growth.

Financial highlights

• Equipment operations net sales increased 18% year-over-year to $8.51 billion; total net sales and revenues were $9.61 billion.

• Net income was $656 million, a 25% decrease year-over-year; diluted EPS was $2.42, down from $3.19.

• Operating profit for the quarter was $773 million, down 3% from $793 million.

• Cash and cash equivalents at quarter-end were $6.80 billion.

• Financial services net income was $244 million, up year-over-year due to favorable financing spreads and lower credit loss provisions.

Outlook and guidance

• Fiscal 2026 net income guidance raised to $4.5–$5.0 billion; equipment operations cash flow projected at $4.5–$5.5 billion.

• Production & Precision Ag net sales forecasted down 5–10% for the year, with operating margin between 11–13%.

• Small Ag & Turf net sales expected up 15%, with operating margin between 13.5–15%.

• Construction & Forestry net sales forecasted up 15%, with operating margin between 9–11%.

• Effective tax rate guidance for 2026: 25–27%; capital expenditures expected to be $1.4 billion.