Original source text
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. , /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.
Production & Precision Agriculture Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions
Small Agriculture & Turf Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions
Construction & Forestry Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions 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
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(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
operating activities:
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
to sales)
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
related to sales)
(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
maturities three months or less)
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
than three months)
430
2,188
4,943
8,519
5,373
10,707
Payments of borrowings (original maturities greater than
three months)
(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
Equivalents, and Restricted 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
Beginning of Period
6,364
5,643
2,169
1,990
8,533
7,633
Cash, Cash Equivalents, and Restricted Cash at
End of Period
$
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
