Deere & Company

02/19/2026 | Press release | Distributed by Public on 02/19/2026 05:04

Deere Reports First Quarter Net Income of $656 Million (Form 8-K)

Deere Reports First Quarter Net Income of $656 Million

● First quarter shipments ahead of plan as order books strengthen
● Diverse customer segments and geographies enable resilience and growth
● Net income guidance range increased to $4.5 billion - $5.0 billion

MOLINE, Illinois (February 19, 2026) - Deere & Company reported net income of $656 million for the first quarter ended February 1, 2026, or $2.42 per share, compared with net income of $869 million, or $3.19 per share, for the quarter ended January 26, 2025.

Worldwide net sales and revenues increased 13 percent, to $9,611 million, in the most recent quarter. Net sales were $8,001 million for the quarter, compared with $6,809 million in the same quarter of 2025.

"While the global large agriculture industry continues to experience challenges, we're encouraged by the ongoing recovery in demand within both the construction and small agriculture segments," said John May, chairman and CEO of John Deere. "These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.5 billion to $5.0 billion.

"Our sustained investment in research and development throughout the cycle is yielding measurable results as we move toward launching a wide range of innovative products and solutions across all business segments," stated May. "These advancements underscore the value of maintaining a robust portfolio that spans broad markets and regions worldwide, which should position us for success as we transition out of the current cycle."

Deere & Company

First Quarter

$ in millions, except per share amounts

2026

2025

% Change

Net sales and revenues

$

9,611

$

8,508

13%

Net income

$

656

$

869

-25%

Fully diluted EPS

$

2.42

$

3.19

Results for the prior period were affected by special items. See Note 1 to the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" category below.

4

Production & Precision Agriculture

First Quarter

$ in millions

2026

2025

% Change

Net sales

$

3,163

$

3,067

3%

Operating profit

$

139

$

338

-59%

Operating margin

4.4%

11.0%

Production & Precision Agriculture sales increased for the quarter as a result of the positive effects of foreign currency translation. Operating profit decreased primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.

Production & Precision Agriculture Operating Profit

First Quarter 2026 Compared to First Quarter 2025

$ in millions

5

Small Agriculture & Turf

First Quarter

$ in millions

2026

2025

% Change

Net sales

$

2,168

$

1,748

24%

Operating profit

$

196

$

124

58%

Operating margin

9.0%

7.1%

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and price realization, partially offset by higher tariffs.

Small Agriculture & Turf Operating Profit

First Quarter 2026 Compared to First Quarter 2025

$ in millions

6

Construction & Forestry

First Quarter

$ in millions

2026

2025

% Change

Net sales

$

2,670

$

1,994

34%

Operating profit

$

137

$

65

111%

Operating margin

5.1%

3.3%

Construction & Forestry sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and production efficiencies, partially offset by higher tariffs.

Construction & Forestry Operating Profit

First Quarter 2026 Compared to First Quarter 2025

$ in millions

Financial Services

First Quarter

$ in millions

2026

2025

% Change

Net income

$

244

$

230

6%

Financial Services net income increased primarily due to favorable financing spreads and a lower provision for credit losses, partially offset by a favorable special item recorded in the prior period described in Note 1 to the financial statements.

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 to up 5%

South America (Tractors & Combines)

Down ~5%

Asia

Flat to down 5%

Construction & Forestry

U.S. & Canada:

Construction Equipment

Up ~5%

Compact Construction Equipment

Up ~5%

Global Forestry

Flat

Global Roadbuilding

Up ~5%

Deere Segment Outlook for Fiscal 2026

Currency

Price

$ in millions

Net Sales

Translation

Realization

Production & Precision Ag

Down 5 to 10%

+3.0%

~ +1.5%

Small Ag & Turf

Up ~15%

+2.0%

~ +2.0%

Construction & Forestry

Up ~15%

+2.0%

~ +2.5%

Financial Services

Net Income

~ $840

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section 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.

Deere & Company published this content on February 19, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 19, 2026 at 11:04 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]