Deere & Company reported a decrease in net income but an increase in revenue for Q1 2026, driven by strong performance in Small Agriculture & Turf and Construction & Forestry segments. The company raised its full-year net income guidance, signaling confidence in an anticipated bottoming of the agricultural cycle and future accelerated growth.
Worldwide net sales and revenues increased 13% to $9,611 million.
positiveSmall Agriculture & Turf net sales increased 24% to $2,168 million, with operating profit up 58% to $196 million.
positiveConstruction & Forestry net sales increased 34% to $2,670 million, with operating profit up 111% to $137 million.
positiveFull-year net income guidance increased to a range of $4.5 billion to $5.0 billion.
positiveNet income decreased 25% to $656 million from $869 million in the prior year.
negativeProduction & Precision Agriculture operating profit decreased 59% to $139 million, with operating margin compressing to 4.4% from 11.0% YoY.
negativeProduction & Precision Agriculture operating profit decrease primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.
attentionFinancial Services revenues decreased 6% to $1,384 million.
negativeTotal operating profit for the company decreased 3% to $773 million.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Production & Precision Agriculture | N/A | — | — | — |
Small Agriculture & Turf | N/A | — | — | — |
Construction & Forestry | N/A | — | — | — |
Financial Services | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Encouraged by the ongoing recovery in demand within both the construction and small agriculture segments.
2026 represents the bottom of the current cycle and provides a strong foundation for accelerated growth going forward.
Sustained investment in research and development is yielding measurable results for innovative product launches.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.