Deere & Company (DE) Q3 2026 earnings summary

Executive summary

• Third quarter net income rose to $1.379 billion ($5.10 per share), up 7% year-over-year, with net sales and revenues up 5% to $12.608 billion, driven by disciplined execution and favorable price realization.

• All major segments reported sales growth, with Construction & Forestry leading at 18% year-over-year and Small Ag & Turf up 12%, while Production & Precision Ag declined 6%.

• Diluted EPS was $5.10 for the quarter and $14.06 for the nine months, compared to $4.75 and $14.57 in the prior year.

• Diversified portfolio and stable U.S. market conditions offset softer conditions in Brazil and Europe.

• Notable events included the acquisition of Tenna LLC for $439 million and $382 million in tariff recoveries.

Financial highlights

• Net sales and revenues rose 5% to $12.608 billion; equipment operations net sales up 6% to $10.999 billion year-over-year.

• Net income attributable to the company was $1.379 billion for the quarter, with operating profit up 18% to $1.856 billion.

• Financial Services net income was $219 million, up 7% due to favorable financing spreads.

• Cash and cash equivalents at quarter end were $8.928 billion; net cash from operating activities for nine months was $3.25 billion.

• Share repurchases totaled $697 million and dividends paid were $1,316 million in the first nine months.

Outlook and guidance

• Fiscal 2026 net income guidance raised to $4.75–$5.00 billion; effective tax rate expected between 24% and 26%.

• Equipment operations cash flow forecast improved to $5–$5.5 billion; capital expenditures around $1.3 billion.

• Production & Precision Ag net sales expected to be down 10–20% for the year, with operating margin narrowed to 11–12%.

• Small Ag & Turf net sales forecast flat to up 5% for the year, with operating margin guidance 14.5–15.5%.

• Construction & Forestry net sales forecast flat to up 20% for the year, with operating margin guidance 10.5–11.5%.