DEERE & CO (DE) Earnings History

DEERE & CO - Q1 2026 EarningsMissed

Filed at: Feb 19, 2026, 6:03 AM EST|Read from source

EXECUTIVE SUMMARY

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.

POSITIVE HIGHLIGHTS

  • Worldwide net sales and revenues increased 13% to $9,611 million.

    positive
  • Small Agriculture & Turf net sales increased 24% to $2,168 million, with operating profit up 58% to $196 million.

    positive
  • Construction & Forestry net sales increased 34% to $2,670 million, with operating profit up 111% to $137 million.

    positive
  • Full-year net income guidance increased to a range of $4.5 billion to $5.0 billion.

    positive

CONCERNS & RISKS

  • Net income decreased 25% to $656 million from $869 million in the prior year.

    negative
  • Production & Precision Agriculture operating profit decreased 59% to $139 million, with operating margin compressing to 4.4% from 11.0% YoY.

    negative
  • Production & Precision Agriculture operating profit decrease primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.

    attention
  • Financial Services revenues decreased 6% to $1,384 million.

    negative
  • Total operating profit for the company decreased 3% to $773 million.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$9.61B
+13.0%
Prior year: $8.51B
Net Income
Quarterly
$656.00M
-25.0%
Prior year: $869.00M
EPS (Diluted)
Quarterly
$2.42
-24.1%
Prior year: $3.19
Operating Income
Quarterly
$773.00M
-2.5%
Prior year: $793.00M
EPS (Basic)
Quarterly
$2.43
-24.1%
Prior year: $3.20

MARGIN ANALYSIS

Operating Margin
Current Quarter
8.0%
Prior Year
9.3%
YoY Change
-133 bps
Net Margin
Current Quarter
6.8%
Prior Year
10.2%
YoY Change
-339 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Production & Precision Agriculture
0.0%
N/A
Small Agriculture & Turf
0.0%
N/A
Construction & Forestry
0.0%
N/A
Financial Services
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Production & Precision Agriculture
N/A
Small Agriculture & Turf
N/A
Construction & Forestry
N/A
Financial Services
N/A
Total Revenue$0.00M100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

revenue
"Outlook for Agriculture & Turf: U.S. & Canada Large Ag down 15-20%, Small Ag & Turf flat to up 5%. Europe flat to up 5%. South America down ~5%. Asia flat to down 5%. Outlook for Construction & Forestry: U.S. & Canada Construction Equipment up ~5%, Compact Construction Equipment up ~5%. Global Forestry flat. Global Roadbuilding up ~5%."
net_income
4,500,000,0005,000,000,000
Mid-point: 4,750,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q1 2025
Favorable net discrete tax items including tax benefits related to foreign net operating losses and an adjustment to an uncertain tax position of a foreign subsidiary.
These items contributed to higher net income in the prior year's comparable quarter.
+$163M
Q1 2025
Gain from valuation allowance on assets held for sale related to Banco John Deere S.A.
Recorded in 'Selling, administrative and general expenses'.
+$32M
Total Impact
+$195M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Encouraged by the ongoing recovery in demand within both the construction and small agriculture segments.

DEERE & CO, Q1 2026 2026 Earnings Call

2026 represents the bottom of the current cycle and provides a strong foundation for accelerated growth going forward.

DEERE & CO, Q1 2026 2026 Earnings Call

Sustained investment in research and development is yielding measurable results for innovative product launches.

DEERE & CO, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.