Key Takeaways
- Deere & Company reported Q1 fiscal 2026 net income of $656 million ($2.42 per share), down from $869 million ($3.19 per share) a year earlier.
- Worldwide net sales and revenues increased 13% to $9.611 billion; net sales rose to $8.001 billion from $6.809 billion.
- Production & Precision Agriculture operating profit fell 59% to $139 million, with Deere citing higher tariffs, unfavorable sales mix, and higher warranty expenses.
- Small Agriculture & Turf operating profit increased 58% to $196 million and Construction & Forestry operating profit rose 111% to $137 million, supported by higher shipment volumes.
- Deere reaffirmed fiscal 2026 net income guidance of $4.5 billion to $5.0 billion.
Deere & Company Posts $656 Million Q1 Net Income on Higher Revenues
Deere & Company (NYSE: DE) reported net income of $656 million for the first quarter ended February 1, 2026, or $2.42 per share. This compares with net income of $869 million, or $3.19 per share, for the first quarter ended January 26, 2025.
Worldwide net sales and revenues increased 13% year-over-year to $9,611 million in the quarter. Net sales were $8,001 million, up from $6,809 million in the same quarter of 2025.
John May, chairman and CEO of John Deere, said: “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. 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.”
Segment Results: Agriculture, Construction, and Financial Services
Production & Precision Agriculture net sales increased 3% to $3,163 million. Operating profit declined to $139 million from $338 million, and operating margin decreased to 4.4% from 11.0%. Deere attributed the operating profit decline primarily to higher tariffs, unfavorable sales mix, and higher warranty expenses.
Small Agriculture & Turf net sales increased 24% to $2,168 million. Operating profit rose to $196 million from $124 million, with operating margin increasing to 9.0% from 7.1%. Deere said the improvement was driven by higher shipment volumes, sales mix, and price realization, partially offset by higher tariffs.
Construction & Forestry net sales increased 34% to $2,670 million. Operating profit increased to $137 million from $65 million, with operating margin rising to 5.1% from 3.3%. Deere attributed the increase primarily to higher shipment volumes, sales mix, and production efficiencies, partially offset by higher tariffs.
Financial Services net income increased 6% to $244 million, which Deere said reflected favorable financing spreads and a lower provision for credit losses.
Deere & Company Maintains Fiscal 2026 Net Income Forecast
Deere forecasted net income attributable to Deere & Company for fiscal 2026 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,” May said. “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.”
Read the complete financial results.
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