Deere三季度业绩好于预期并上调全年净利润指引

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, Ill., Aug. 20, 2026 /PRNewswire/ -- Deere & Company (NYSE: DE) 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."
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.
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.
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.
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.
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 "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally, while others could more heavily affect a particular line of business.
Forward-looking statements are based on information currently available to the company and the company's current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
- the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs including the availability and price of fertilizer, government farm programs, and availability of transport for crops
- construction and forestry activity, which is affected by factors such as housing starts and supply, real estate and housing prices, levels of residential and non-residential construction, public and private infrastructure development, and government policies and regulations
- macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer sentiment and practices due to slower economic growth or a recession, and regional or global liquidity constraints
- the uncertainty of government policies and actions with respect to the global trade environment, including increased and contested tariffs announced by the U.S. government and retaliatory trade regulations
- political, economic, and social instability in the geographies in which the company operates
- worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and the resulting impacts on the demand for the company's equipment
- rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities
- accurately forecasting customer demand for products and services, and adequately managing inventory
- selling products domestically or internationally, managing increased costs of production, absorbing or passing on increased expenses, as well as accurately predicting financial results and industry trends
- availability and price of raw materials, components, and whole goods
- delays or disruptions in the company's supply chain, including those arising from geopolitical conflicts
- changes in climate patterns, unfavorable weather events, and natural disasters
- suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages
- higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions
- attracting, developing, engaging, and retaining qualified employees
- adapting in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology
- realizing the anticipated benefits of the company's Smart Industrial Operating Model, achieving the company's Leap Ambitions, and executing the company's related business strategies in production systems, precision technologies, and aftermarket support
- the company's dealer network's development and implementation of successful sales plans, management of new and used inventory, distribution of the company's products, and support and service for the company's precision technology solutions
- achieving anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
- negative claims or publicity that damage the company's reputation or brand
- the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge
- labor relations and contracts, including work stoppages and other disruptions
- security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products
- leveraging artificial intelligence and machine learning within the company's business processes
- changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environment (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, product liability, right-to-repair, tariffs, tax, telematics, and telecommunications
- governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
- warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products
- investigations, claims, lawsuits, or other legal proceedings
- loss of or challenges to intellectual property rights
Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
DEERE & COMPANY THIRD QUARTER 2026 PRESS RELEASE (In millions of dollars) Unaudited |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
August 2 |
July 27 |
% |
August 2 |
July 27 |
% |
||||||||||||
2026 |
2025 |
Change |
2026 |
2025 |
Change |
||||||||||||
Net sales and revenues: |
|||||||||||||||||
Production & Precision Ag net sales |
$ |
3,998 |
$ |
4,273 |
-6 |
$ |
11,664 |
$ |
12,571 |
-7 |
|||||||
Small Ag & Turf net sales |
3,383 |
3,025 |
+12 |
9,036 |
7,767 |
+16 |
|||||||||||
Construction & Forestry net sales |
3,618 |
3,059 |
+18 |
10,079 |
8,000 |
+26 |
|||||||||||
Financial Services revenues |
1,371 |
1,418 |
-3 |
4,121 |
4,273 |
-4 |
|||||||||||
Other revenues |
238 |
243 |
-2 |
689 |
679 |
+1 |
|||||||||||
Total net sales and revenues |
$ |
12,608 |
$ |
12,018 |
+5 |
$ |
35,589 |
$ |
33,290 |
+7 |
|||||||
Operating profit: * |
|||||||||||||||||
Production & Precision Ag |
$ |
527 |
$ |
580 |
-9 |
$ |
1,372 |
$ |
2,066 |
-34 |
|||||||
Small Ag & Turf |
622 |
485 |
+28 |
1,538 |
1,182 |
+30 |
|||||||||||
Construction & Forestry |
436 |
237 |
+84 |
1,134 |
681 |
+67 |
|||||||||||
Financial Services |
271 |
266 |
+2 |
823 |
740 |
+11 |
|||||||||||
Total operating profit |
1,856 |
1,568 |
+18 |
4,867 |
4,669 |
+4 |
|||||||||||
Reconciling items ** |
52 |
60 |
-13 |
184 |
198 |
-7 |
|||||||||||
Income taxes |
(529) |
(339) |
+56 |
(1,243) |
(905) |
+37 |
|||||||||||
Net income attributable to Deere & Company |
$ |
1,379 |
$ |
1,289 |
+7 |
$ |
3,808 |
$ |
3,962 |
-4 |
* |
Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of Financial Services includes the effect of interest expense and foreign exchange gains and losses. |
** |
Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests. |
DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars and shares except per share amounts) Unaudited |
|||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||
2026 |
2025 |
2026 |
2025 |
||||||||||
Net Sales and Revenues |
|||||||||||||
Net sales |
$ |
10,999 |
$ |
10,357 |
$ |
30,779 |
$ |
28,338 |
|||||
Finance and interest income |
1,353 |
1,426 |
4,011 |
4,233 |
|||||||||
Other income |
256 |
235 |
799 |
719 |
|||||||||
Total |
12,608 |
12,018 |
35,589 |
33,290 |
|||||||||
Costs and Expenses |
|||||||||||||
Cost of sales |
7,939 |
7,570 |
22,486 |
20,215 |
|||||||||
Research and development expenses |
567 |
556 |
1,704 |
1,631 |
|||||||||
Selling, administrative and general expenses |
1,220 |
1,217 |
3,401 |
3,387 |
|||||||||
Interest expense |
710 |
794 |
2,141 |
2,408 |
|||||||||
Other operating expenses |
290 |
281 |
846 |
817 |
|||||||||
Total |
10,726 |
10,418 |
30,578 |
28,458 |
|||||||||
Income of Consolidated Group before Income Taxes |
1,882 |
1,600 |
5,011 |
4,832 |
|||||||||
Provision for income taxes |
529 |
339 |
1,243 |
905 |
|||||||||
Income of Consolidated Group |
1,353 |
1,261 |
3,768 |
3,927 |
|||||||||
Equity in income of unconsolidated affiliates |
24 |
10 |
34 |
11 |
|||||||||
Net Income |
1,377 |
1,271 |
3,802 |
3,938 |
|||||||||
Less: Net loss attributable to noncontrolling interests |
(2) |
(18) |
(6) |
(24) |
|||||||||
Net Income Attributable to Deere & Company |
$ |
1,379 |
$ |
1,289 |
$ |
3,808 |
$ |
3,962 |
|||||
Per Share Data |
|||||||||||||
Basic |
$ |
5.11 |
$ |
4.76 |
$ |
14.10 |
$ |
14.61 |
|||||
Diluted |
5.10 |
4.75 |
14.06 |
14.57 |
|||||||||
Dividends declared |
1.62 |
1.62 |
4.86 |
4.86 |
|||||||||
Dividends paid |
1.62 |
1.62 |
4.86 |
4.71 |
|||||||||
Average Shares Outstanding |
|||||||||||||
Basic |
269.8 |
270.7 |
270.1 |
271.1 |
|||||||||
Diluted |
270.7 |
271.4 |
270.8 |
271.9 |
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited |
|||||||||
August 2 |
November 2 |
July 27 |
|||||||
2026 |
2025 |
2025 |
|||||||
Assets |
|||||||||
Cash and cash equivalents |
$ |
8,928 |
$ |
8,276 |
$ |
8,580 |
|||
Marketable securities |
1,350 |
1,411 |
1,407 |
||||||
Trade accounts and notes receivable – net |
7,723 |
5,317 |
6,103 |
||||||
Financing receivables – net |
42,860 |
44,575 |
43,930 |
||||||
Financing receivables securitized – net |
6,316 |
6,831 |
7,948 |
||||||
Other receivables |
2,466 |
2,403 |
2,826 |
||||||
Equipment on operating leases – net |
7,400 |
7,600 |
7,512 |
||||||
Inventories |
7,811 |
7,406 |
7,713 |
||||||
Property and equipment – net |
8,006 |
8,079 |
7,713 |
||||||
Goodwill |
4,466 |
4,188 |
4,209 |
||||||
Other intangible assets – net |
940 |
892 |
926 |
||||||
Retirement benefits |
3,541 |
3,273 |
3,182 |
||||||
Deferred income taxes |
2,343 |
2,284 |
2,209 |
||||||
Other assets |
3,457 |
3,461 |
3,559 |
||||||
Total Assets |
$ |
107,607 |
$ |
105,996 |
$ |
107,817 |
|||
Liabilities and Stockholders' Equity |
|||||||||
Liabilities |
|||||||||
Short-term borrowings |
$ |
17,115 |
$ |
13,796 |
$ |
14,607 |
|||
Short-term securitization borrowings |
6,095 |
6,596 |
7,610 |
||||||
Accounts payable and accrued expenses |
13,668 |
13,909 |
13,582 |
||||||
Deferred income taxes |
411 |
434 |
489 |
||||||
Long-term borrowings |
40,626 |
43,544 |
44,429 |
||||||
Retirement benefits and other liabilities |
1,651 |
1,710 |
1,836 |
||||||
Total liabilities |
79,566 |
79,989 |
82,553 |
||||||
Redeemable noncontrolling interest |
44 |
51 |
84 |
||||||
Stockholders' Equity |
|||||||||
Total Deere & Company stockholders' equity |
27,990 |
25,950 |
25,175 |
||||||
Noncontrolling interests |
7 |
6 |
5 |
||||||
Total stockholders' equity |
27,997 |
25,956 |
25,180 |
||||||
Total Liabilities and Stockholders' Equity |
$ |
107,607 |
$ |
105,996 |
$ |
107,817 |
|||
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited |
||||||
2026 |
2025 |
|||||
Cash Flows from Operating Activities |
||||||
Net income |
$ |
3,802 |
$ |
3,938 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Provision for credit losses |
205 |
258 |
||||
Depreciation and amortization |
1,787 |
1,668 |
||||
Impairments and other adjustments |
29 |
|||||
Share-based compensation expense |
116 |
104 |
||||
Credit for deferred income taxes |
(61) |
(102) |
||||
Changes in assets and liabilities: |
||||||
Receivables related to sales |
(1,252) |
(494) |
||||
Inventories |
(443) |
(526) |
||||
Accounts payable and accrued expenses |
(266) |
(717) |
||||
Accrued income taxes payable/receivable |
(119) |
(147) |
||||
Retirement benefits |
(367) |
(813) |
||||
Other |
(152) |
266 |
||||
Net cash provided by operating activities |
3,250 |
3,464 |
||||
Cash Flows from Investing Activities |
||||||
Collections of receivables (excluding receivables related to sales) |
19,922 |
19,712 |
||||
Proceeds from maturities and sales of marketable securities |
389 |
359 |
||||
Proceeds from sales of equipment on operating leases |
1,479 |
1,408 |
||||
Cost of receivables acquired (excluding receivables related to sales) |
(19,139) |
(18,962) |
||||
Acquisitions of businesses, net of cash acquired |
(455) |
(89) |
||||
Purchases of marketable securities |
(361) |
(598) |
||||
Purchases of property and equipment |
(716) |
(852) |
||||
Cost of equipment on operating leases acquired |
(1,933) |
(2,009) |
||||
Collections of receivables from unconsolidated affiliates |
197 |
334 |
||||
Collateral on derivatives – net |
(63) |
127 |
||||
Other |
(145) |
(231) |
||||
Net cash used for investing activities |
(825) |
(801) |
||||
Cash Flows from Financing Activities |
||||||
Net proceeds (payments) in short-term borrowings (original maturities three months or less) |
3,205 |
(2,060) |
||||
Proceeds from borrowings issued (original maturities greater than three months) |
5,373 |
10,707 |
||||
Payments of borrowings (original maturities greater than three months) |
(8,338) |
(7,743) |
||||
Repurchases of common stock |
(697) |
(1,136) |
||||
Dividends paid |
(1,316) |
(1,282) |
||||
Other |
(55) |
(43) |
||||
Net cash used for financing activities |
(1,828) |
(1,557) |
||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash |
20 |
108 |
||||
Net Increase in Cash, Cash Equivalents, and Restricted Cash |
617 |
1,214 |
||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period |
8,533 |
7,633 |
||||
Cash, Cash Equivalents, and Restricted Cash at End of Period |
$ |
9,150 |
$ |
8,847 |
||
See Condensed Notes to Interim Consolidated Financial Statements. |
DEERE & COMPANY |
|
(1) |
Acquisitions |
In 2026, the company completed several acquisitions to advance the capabilities of its existing technology offerings, including the February acquisition of Tenna LLC (Tenna), a U.S. construction technology company that provides mixed-fleet equipment operations and asset tracking solutions, for a purchase price of $439 million, net of cash acquired. Tenna was assigned to the CF segment. The company also acquired other small-scale businesses assigned to the PPA, SAT, and CF segments for a combined purchase price consideration of $16 million, net of cash acquired. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets. |
|
In 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the PPA and CF segments. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets. |
|
(2) |
Special Items |
Impairment |
|
In the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." The charge is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets. |
|
Discrete Tax Items |
|
In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary. |
|
Banco John Deere S.A. |
|
In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. |
|
The BJD business was reclassified as held for sale in 2024. In January 2025, the valuation allowance on assets held for sale decreased, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 million recorded in "Selling, administrative and general expenses" in the nine months ended July 27, 2025. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows. |
|
The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income (loss) of unconsolidated affiliates" within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively. |
Summary of 2025 Special Items
The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025.
Three Months |
Nine Months |
||||||||||||||||||||||||||||||
PPA |
SAT |
CF |
FS |
Total |
PPA |
SAT |
CF |
FS |
Total |
||||||||||||||||||||||
2025 Expense (benefit): |
|||||||||||||||||||||||||||||||
Impairment |
$ |
28 |
$ |
17 |
$ |
16 |
$ |
61 |
$ |
28 |
$ |
17 |
$ |
16 |
$ |
61 |
|||||||||||||||
BJD measurement |
$ |
(32) |
(32) |
||||||||||||||||||||||||||||
Total expense (benefit) |
$ |
28 |
$ |
17 |
$ |
16 |
$ |
61 |
$ |
28 |
$ |
17 |
$ |
16 |
$ |
(32) |
$ |
29 |
(3) |
The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company's Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements. |
DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited |
||||||||||||||||||||||||||
EQUIPMENT |
FINANCIAL |
|||||||||||||||||||||||||
OPERATIONS |
SERVICES |
ELIMINATIONS |
CONSOLIDATED |
|||||||||||||||||||||||
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|||||||||||||||||||
Net Sales and Revenues |
||||||||||||||||||||||||||
Net sales |
$ |
10,999 |
$ |
10,357 |
$ |
10,999 |
$ |
10,357 |
||||||||||||||||||
Finance and interest income |
149 |
133 |
$ |
1,383 |
$ |
1,433 |
$ |
(179) |
$ |
(140) |
1,353 |
1,426 |
1 |
|||||||||||||
Other income |
191 |
190 |
122 |
111 |
(57) |
(66) |
256 |
235 |
2, 3, 4 |
|||||||||||||||||
Total |
11,339 |
10,680 |
1,505 |
1,544 |
(236) |
(206) |
12,608 |
12,018 |
||||||||||||||||||
Costs and Expenses |
||||||||||||||||||||||||||
Cost of sales |
7,950 |
7,578 |
(11) |
(8) |
7,939 |
7,570 |
4 |
|||||||||||||||||||
Research and development expenses |
567 |
556 |
567 |
556 |
||||||||||||||||||||||
Selling, administrative and general expenses |
988 |
999 |
234 |
220 |
(2) |
(2) |
1,220 |
1,217 |
4 |
|||||||||||||||||
Interest expense |
99 |
102 |
661 |
720 |
(50) |
(28) |
710 |
794 |
1 |
|||||||||||||||||
Interest compensation to Financial Services |
129 |
112 |
(129) |
(112) |
1 |
|||||||||||||||||||||
Other operating expenses |
(23) |
(8) |
357 |
345 |
(44) |
(56) |
290 |
281 |
3, 4, 5 |
|||||||||||||||||
Total |
9,710 |
9,339 |
1,252 |
1,285 |
(236) |
(206) |
10,726 |
10,418 |
||||||||||||||||||
Income before Income Taxes |
1,629 |
1,341 |
253 |
259 |
1,882 |
1,600 |
||||||||||||||||||||
Provision for income taxes |
472 |
274 |
57 |
65 |
529 |
339 |
||||||||||||||||||||
Income after Income Taxes |
1,157 |
1,067 |
196 |
194 |
1,353 |
1,261 |
||||||||||||||||||||
Equity in income (loss) of unconsolidated affiliates |
1 |
(1) |
23 |
11 |
24 |
10 |
||||||||||||||||||||
Net Income |
1,158 |
1,066 |
219 |
205 |
1,377 |
1,271 |
||||||||||||||||||||
Less: Net loss attributable to noncontrolling interests |
(2) |
(18) |
(2) |
(18) |
||||||||||||||||||||||
Net Income Attributable to Deere & Company |
$ |
1,160 |
$ |
1,084 |
$ |
219 |
$ |
205 |
$ |
1,379 |
$ |
1,289 |
||||||||||||||
1 |
Elimination of intercompany interest income and expense. |
2 |
Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. |
3 |
Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets. |
4 |
Elimination of intercompany service revenues and fees. |
5 |
Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases. |
DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited |
||||||||||||||||||||||||||
EQUIPMENT |
FINANCIAL |
|||||||||||||||||||||||||
OPERATIONS |
SERVICES |
ELIMINATIONS |
CONSOLIDATED |
|||||||||||||||||||||||
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|||||||||||||||||||
Net Sales and Revenues |
||||||||||||||||||||||||||
Net sales |
$ |
30,779 |
$ |
28,338 |
$ |
30,779 |
$ |
28,338 |
||||||||||||||||||
Finance and interest income |
379 |
351 |
$ |
4,093 |
$ |
4,268 |
$ |
(461) |
$ |
(386) |
4,011 |
4,233 |
1 |
|||||||||||||
Other income |
616 |
580 |
408 |
350 |
(225) |
(211) |
799 |
719 |
2, 3, 4 |
|||||||||||||||||
Total |
31,774 |
29,269 |
4,501 |
4,618 |
(686) |
(597) |
35,589 |
33,290 |
||||||||||||||||||
Costs and Expenses |
||||||||||||||||||||||||||
Cost of sales |
22,518 |
20,239 |
(32) |
(24) |
22,486 |
20,215 |
4 |
|||||||||||||||||||
Research and development expenses |
1,704 |
1,631 |
1,704 |
1,631 |
||||||||||||||||||||||
Selling, administrative and general expenses |
2,775 |
2,761 |
632 |
632 |
(6) |
(6) |
3,401 |
3,387 |
4 |
|||||||||||||||||
Interest expense |
294 |
282 |
1,973 |
2,206 |
(126) |
(80) |
2,141 |
2,408 |
1 |
|||||||||||||||||
Interest compensation to Financial Services |
334 |
306 |
(334) |
(306) |
1 |
|||||||||||||||||||||
Other operating expenses |
(59) |
(47) |
1,093 |
1,045 |
(188) |
(181) |
846 |
817 |
3, 4, 5 |
|||||||||||||||||
Total |
27,566 |
25,172 |
3,698 |
3,883 |
(686) |
(597) |
30,578 |
28,458 |
||||||||||||||||||
Income before Income Taxes |
4,208 |
4,097 |
803 |
735 |
5,011 |
4,832 |
||||||||||||||||||||
Provision for income taxes |
1,059 |
752 |
184 |
153 |
1,243 |
905 |
||||||||||||||||||||
Income after Income Taxes |
3,149 |
3,345 |
619 |
582 |
3,768 |
3,927 |
||||||||||||||||||||
Equity in income (loss) of unconsolidated affiliates |
(4) |
34 |
15 |
34 |
11 |
|||||||||||||||||||||
Net Income |
3,149 |
3,341 |
653 |
597 |
3,802 |
3,938 |
||||||||||||||||||||
Less: Net loss attributable to noncontrolling interests |
(6) |
(24) |
(6) |
(24) |
||||||||||||||||||||||
Net Income Attributable to Deere & Company |
$ |
3,155 |
$ |
3,365 |
$ |
653 |
$ |
597 |
$ |
3,808 |
$ |
3,962 |
||||||||||||||
1 |
Elimination of intercompany interest income and expense. |
2 |
Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. |
3 |
Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets. |
4 |
Elimination of intercompany service revenues and fees. |
5 |
Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases. |
DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited |
||||||||||||||||||||||||||||||||||||||
EQUIPMENT |
FINANCIAL |
|||||||||||||||||||||||||||||||||||||
OPERATIONS |
SERVICES |
ELIMINATIONS |
CONSOLIDATED |
|||||||||||||||||||||||||||||||||||
Aug 2 |
Nov 2 |
Jul 27 |
Aug 2 |
Nov 2 |
Jul 27 |
Aug 2 |
Nov 2 |
Jul 27 |
Aug 2 |
Nov 2 |
Jul 27 |
|||||||||||||||||||||||||||
2026 |
2025 |
2025 |
2026 |
2025 |
2025 |
2026 |
2025 |
2025 |
2026 |
2025 |
2025 |
|||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ |
6,607 |
$ |
6,340 |
$ |
6,641 |
$ |
2,321 |
$ |
1,936 |
$ |
1,939 |
$ |
8,928 |
$ |
8,276 |
$ |
8,580 |
||||||||||||||||||||
Marketable securities |
155 |
217 |
240 |
1,195 |
1,194 |
1,167 |
1,350 |
1,411 |
1,407 |
|||||||||||||||||||||||||||||
Receivables from Financial Services |
5,364 |
4,649 |
3,649 |
$ |
(5,364) |
$ |
(4,649) |
$ |
(3,649) |
6 |
||||||||||||||||||||||||||||
Trade accounts and notes receivable – net |
1,472 |
1,316 |
1,335 |
8,442 |
5,900 |
7,064 |
(2,191) |
(1,899) |
(2,296) |
7,723 |
5,317 |
6,103 |
7 |
|||||||||||||||||||||||||
Financing receivables – net |
106 |
88 |
84 |
42,754 |
44,487 |
43,846 |
42,860 |
44,575 |
43,930 |
|||||||||||||||||||||||||||||
Financing receivables securitized – net |
2 |
1 |
1 |
6,314 |
6,830 |
7,947 |
6,316 |
6,831 |
7,948 |
|||||||||||||||||||||||||||||
Other receivables |
1,926 |
1,809 |
2,013 |
594 |
658 |
867 |
(54) |
(64) |
(54) |
2,466 |
2,403 |
2,826 |
8 |
|||||||||||||||||||||||||
Equipment on operating leases – net |
7,400 |
7,600 |
7,512 |
7,400 |
7,600 |
7,512 |
||||||||||||||||||||||||||||||||
Inventories |
7,811 |
7,406 |
7,713 |
7,811 |
7,406 |
7,713 |
||||||||||||||||||||||||||||||||
Property and equipment – net |
7,975 |
8,047 |
7,680 |
31 |
32 |
33 |
8,006 |
8,079 |
7,713 |
|||||||||||||||||||||||||||||
Goodwill |
4,466 |
4,188 |
4,209 |
4,466 |
4,188 |
4,209 |
||||||||||||||||||||||||||||||||
Other intangible assets – net |
940 |
892 |
926 |
940 |
892 |
926 |
||||||||||||||||||||||||||||||||
Retirement benefits |
3,439 |
3,181 |
3,092 |
104 |
94 |
92 |
(2) |
(2) |
(2) |
3,541 |
3,273 |
3,182 |
||||||||||||||||||||||||||
Deferred income taxes |
2,487 |
2,507 |
2,471 |
47 |
46 |
44 |
(191) |
(269) |
(306) |
2,343 |
2,284 |
2,209 |
9 |
|||||||||||||||||||||||||
Other assets |
2,371 |
2,218 |
2,357 |
1,098 |
1,244 |
1,211 |
(12) |
(1) |
(9) |
3,457 |
3,461 |
3,559 |
||||||||||||||||||||||||||
Total Assets |
$ |
45,121 |
$ |
42,859 |
$ |
42,411 |
$ |
70,300 |
$ |
70,021 |
$ |
71,722 |
$ |
(7,814) |
$ |
(6,884) |
$ |
(6,316) |
$ |
107,607 |
$ |
105,996 |
$ |
107,817 |
||||||||||||||
Liabilities and Stockholders' Equity |
||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||
Short-term borrowings |
$ |
417 |
$ |
414 |
$ |
461 |
$ |
16,698 |
$ |
13,382 |
$ |
14,146 |
$ |
17,115 |
$ |
13,796 |
$ |
14,607 |
||||||||||||||||||||
Short-term securitization borrowings |
1 |
1 |
6,094 |
6,595 |
7,610 |
6,095 |
6,596 |
7,610 |
||||||||||||||||||||||||||||||
Payables to equipment operations |
5,364 |
4,649 |
3,649 |
$ |
(5,364) |
$ |
(4,649) |
$ |
(3,649) |
6 |
||||||||||||||||||||||||||||
Accounts payable and accrued expenses |
12,796 |
12,757 |
12,795 |
3,129 |
3,116 |
3,146 |
(2,257) |
(1,964) |
(2,359) |
13,668 |
13,909 |
13,582 |
7, 8 |
|||||||||||||||||||||||||
Deferred income taxes |
326 |
347 |
393 |
276 |
356 |
402 |
(191) |
(269) |
(306) |
411 |
434 |
489 |
9 |
|||||||||||||||||||||||||
Long-term borrowings |
8,907 |
8,756 |
8,789 |
31,719 |
34,788 |
35,640 |
40,626 |
43,544 |
44,429 |
|||||||||||||||||||||||||||||
Retirement benefits and other liabilities |
1,586 |
1,646 |
1,767 |
67 |
66 |
71 |
(2) |
(2) |
(2) |
1,651 |
1,710 |
1,836 |
||||||||||||||||||||||||||
Total liabilities |
24,033 |
23,921 |
24,205 |
63,347 |
62,952 |
64,664 |
(7,814) |
(6,884) |
(6,316) |
79,566 |
79,989 |
82,553 |
||||||||||||||||||||||||||
Redeemable noncontrolling interest |
44 |
51 |
84 |
44 |
51 |
84 |
||||||||||||||||||||||||||||||||
Stockholders' Equity |
||||||||||||||||||||||||||||||||||||||
Total Deere & Company stockholders' equity |
27,990 |
25,950 |
25,175 |
6,953 |
7,069 |
7,058 |
(6,953) |
(7,069) |
(7,058) |
27,990 |
25,950 |
25,175 |
10 |
|||||||||||||||||||||||||
Noncontrolling interests |
7 |
6 |
5 |
7 |
6 |
5 |
||||||||||||||||||||||||||||||||
Financial Services' equity |
(6,953) |
(7,069) |
(7,058) |
6,953 |
7,069 |
7,058 |
10 |
|||||||||||||||||||||||||||||||
Adjusted total stockholders' equity |
21,044 |
18,887 |
18,122 |
6,953 |
7,069 |
7,058 |
27,997 |
25,956 |
25,180 |
|||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity |
$ |
45,121 |
$ |
42,859 |
$ |
42,411 |
$ |
70,300 |
$ |
70,021 |
$ |
71,722 |
$ |
(7,814) |
$ |
(6,884) |
$ |
(6,316) |
$ |
107,607 |
$ |
105,996 |
$ |
107,817 |
||||||||||||||
6 |
Elimination of receivables / payables between equipment operations and Financial Services. |
7 |
Primarily reclassification of sales incentive accruals on receivables sold to Financial Services. |
8 |
Reclassification of other receivables / payables. |
9 |
Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. |
10 |
Elimination of Financial Services' equity. |
DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited |
||||||||||||||||||||||||||
EQUIPMENT |
FINANCIAL |
|||||||||||||||||||||||||
OPERATIONS |
SERVICES |
ELIMINATIONS |
CONSOLIDATED |
|||||||||||||||||||||||
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|||||||||||||||||||
Cash Flows from Operating Activities |
||||||||||||||||||||||||||
Net income |
$ |
3,149 |
$ |
3,341 |
$ |
653 |
$ |
597 |
$ |
3,802 |
$ |
3,938 |
||||||||||||||
Adjustments to reconcile net income to net cash provided by |
||||||||||||||||||||||||||
Provision (credit) for credit losses |
(1) |
18 |
206 |
240 |
205 |
258 |
||||||||||||||||||||
Depreciation and amortization |
1,042 |
965 |
821 |
804 |
$ |
(76) |
$ |
(101) |
1,787 |
1,668 |
11 |
|||||||||||||||
Impairments and other adjustments |
61 |
(32) |
29 |
|||||||||||||||||||||||
Share-based compensation expense |
116 |
104 |
116 |
104 |
12 |
|||||||||||||||||||||
Distributed earnings of Financial Services |
794 |
1,066 |
(794) |
(1,066) |
13 |
|||||||||||||||||||||
Provision (credit) for deferred income taxes |
20 |
(242) |
(81) |
140 |
(61) |
(102) |
||||||||||||||||||||
Changes in assets and liabilities: |
||||||||||||||||||||||||||
Receivables related to sales |
(123) |
(66) |
(1,129) |
(428) |
(1,252) |
(494) |
14, 16 |
|||||||||||||||||||
Inventories |
(330) |
(423) |
(113) |
(103) |
(443) |
(526) |
15 |
|||||||||||||||||||
Accounts payable and accrued expenses |
61 |
(646) |
(34) |
69 |
(293) |
(140) |
(266) |
(717) |
16 |
|||||||||||||||||
Accrued income taxes payable/receivable |
(99) |
(89) |
(20) |
(58) |
(119) |
(147) |
||||||||||||||||||||
Retirement benefits |
(359) |
(770) |
(8) |
(43) |
(367) |
(813) |
||||||||||||||||||||
Other |
(142) |
123 |
71 |
182 |
(81) |
(39) |
(152) |
266 |
11, 12, 15 |
|||||||||||||||||
Net cash provided by operating activities |
4,012 |
3,338 |
1,608 |
1,899 |
(2,370) |
(1,773) |
3,250 |
3,464 |
||||||||||||||||||
Cash Flows from Investing Activities |
||||||||||||||||||||||||||
Collections of receivables (excluding receivables related |
20,261 |
20,178 |
(339) |
(466) |
19,922 |
19,712 |
14 |
|||||||||||||||||||
Proceeds from maturities and sales of marketable securities |
108 |
27 |
281 |
332 |
389 |
359 |
||||||||||||||||||||
Proceeds from sales of equipment on operating leases |
1,479 |
1,408 |
1,479 |
1,408 |
||||||||||||||||||||||
Cost of receivables acquired (excluding receivables |
(19,351) |
(19,189) |
212 |
227 |
(19,139) |
(18,962) |
14 |
|||||||||||||||||||
Acquisitions of businesses, net of cash acquired |
(455) |
(89) |
(455) |
(89) |
||||||||||||||||||||||
Purchases of marketable securities |
(42) |
(133) |
(319) |
(465) |
(361) |
(598) |
||||||||||||||||||||
Purchases of property and equipment |
(714) |
(851) |
(2) |
(1) |
(716) |
(852) |
||||||||||||||||||||
Cost of equipment on operating leases acquired |
(2,086) |
(2,148) |
153 |
139 |
(1,933) |
(2,009) |
15 |
|||||||||||||||||||
Increase in investment in Financial Services |
(5) |
5 |
17 |
|||||||||||||||||||||||
Increase in trade and wholesale receivables |
(1,550) |
(807) |
1,550 |
807 |
14 |
|||||||||||||||||||||
Collections of receivables from unconsolidated affiliates |
189 |
197 |
145 |
197 |
334 |
|||||||||||||||||||||
Collateral on derivatives – net |
1 |
4 |
(64) |
123 |
(63) |
127 |
||||||||||||||||||||
Other |
(72) |
(75) |
(73) |
(156) |
(145) |
(231) |
||||||||||||||||||||
Net cash used for investing activities |
(1,179) |
(928) |
(1,227) |
(580) |
1,581 |
707 |
(825) |
(801) |
||||||||||||||||||
Cash Flows from Financing Activities |
||||||||||||||||||||||||||
Net proceeds (payments) in short-term borrowings (original |
18 |
294 |
3,187 |
(2,354) |
3,205 |
(2,060) |
||||||||||||||||||||
Change in intercompany receivables/payables |
(735) |
(660) |
735 |
660 |
||||||||||||||||||||||
Proceeds from borrowings issued (original maturities greater |
430 |
2,188 |
4,943 |
8,519 |
5,373 |
10,707 |
||||||||||||||||||||
Payments of borrowings (original maturities greater than |
(262) |
(863) |
(8,076) |
(6,880) |
(8,338) |
(7,743) |
||||||||||||||||||||
Repurchases of common stock |
(697) |
(1,136) |
(697) |
(1,136) |
||||||||||||||||||||||
Capital investment from Equipment Operations |
5 |
(5) |
17 |
|||||||||||||||||||||||
Dividends paid |
(1,316) |
(1,282) |
(794) |
(1,066) |
794 |
1,066 |
(1,316) |
(1,282) |
13 |
|||||||||||||||||
Other |
(27) |
(25) |
(28) |
(18) |
(55) |
(43) |
||||||||||||||||||||
Net cash used for financing activities |
(2,589) |
(1,484) |
(28) |
(1,139) |
789 |
1,066 |
(1,828) |
(1,557) |
||||||||||||||||||
Effect of Exchange Rate Changes on Cash, Cash |
22 |
96 |
(2) |
12 |
20 |
108 |
||||||||||||||||||||
Net Increase in Cash, Cash Equivalents, and Restricted Cash |
266 |
1,022 |
351 |
192 |
617 |
1,214 |
||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash at |
6,364 |
5,643 |
2,169 |
1,990 |
8,533 |
7,633 |
||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash at |
$ |
6,630 |
$ |
6,665 |
$ |
2,520 |
$ |
2,182 |
$ |
9,150 |
$ |
8,847 |
||||||||||||||
11 |
Elimination of depreciation on leases related to inventory transferred to equipment on operating leases. |
12 |
Reclassification of share-based compensation expense. |
13 |
Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities. |
14 |
Primarily reclassification of receivables related to the sale of equipment. |
15 |
Reclassification of direct lease agreements with retail customers. |
16 |
Reclassification of sales incentive accruals on receivables sold to Financial Services. |
17 |
Elimination of change in investment from equipment operations to Financial Services. |
SOURCE Deere & Company