John Deere (DE) Q3 2025 Financial Results Summary
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Deere & Company (DE) Q3 2026: Strong Earnings Growth Amid Market Challenges — Positive Outlook
Deere & Company reported a robust performance for the third quarter of 2026, with net income reaching $1.379 billion, or $5.10 per share, compared to $1.289 billion, or $4.75 per share, for the same quarter last year. This marks an increase of $90 million or 7% YoY in net income, showcasing the company's ability to navigate a dynamic market effectively.
Key Financial Metrics:
- Net Income: $1.379 billion (Q3 2026) vs. $1.289 billion (Q3 2025) — +7% YoY
- Earnings Per Share (EPS): $5.10 (Q3 2026) vs. $4.75 (Q3 2025) — +7% YoY
- Worldwide Net Sales and Revenues: $12.608 billion (Q3 2026) vs. $12.018 billion (Q3 2025) — +5% YoY
- Net Sales: $10.999 billion (Q3 2026) vs. $10.357 billion (Q3 2025) — +6% YoY
- Net Income for Nine Months: $3.808 billion (2026) vs. $3.962 billion (2025) — -4% YoY
Analyst View:
This quarter is a positive outcome for shareholders, reflecting Deere's disciplined execution and resilience across its portfolio. The increase in net income and EPS indicates strong operational performance, despite challenges in certain segments. The company's ability to improve its net income guidance to a range of $4.75 billion to $5.00 billion for the fiscal year further underscores its confidence in navigating market conditions.
Segment Performance:
- Production & Precision Agriculture:
- Net Sales: $3.998 billion (Q3 2026) vs. $4.273 billion (Q3 2025) — -6% YoY
- Operating Profit: $527 million (Q3 2026) vs. $580 million (Q3 2025) — -9% YoY
The decline in sales and operating profit in this segment is attributed to lower shipment volumes, although partially offset by favorable price realization.
- Small Agriculture & Turf:
- Net Sales: $3.383 billion (Q3 2026) vs. $3.025 billion (Q3 2025) — +12% YoY
- Operating Profit: $622 million (Q3 2026) vs. $485 million (Q3 2025) — +28% YoY
This segment showed strong growth due to higher shipment volumes and favorable pricing.
- Construction & Forestry:
- Net Sales: $3.618 billion (Q3 2026) vs. $3.059 billion (Q3 2025) — +18% YoY
- Operating Profit: $436 million (Q3 2026) vs. $237 million (Q3 2025) — +84% YoY
The significant increase in sales and profit is primarily due to higher shipment volumes and favorable pricing.
- Financial Services:
- Net Income: $219 million (Q3 2026) vs. $205 million (Q3 2025) — +7% YoY
The increase in financial services income is attributed to favorable financing spreads.
Dividend and Share Buyback:
Deere declared a dividend of $1.62 per share, consistent with the previous year, reflecting the company's commitment to returning value to shareholders.
Forward-Looking Catalysts:
Investors should watch for the upcoming trends in order books, as Deere anticipates 2026 to be the bottom of the ag equipment cycle. The company is optimistic about improving used-equipment inventories and increasing customer adoption of advanced technologies, which could drive future growth. Additionally, the guidance for net income in the range of $4.75 billion to $5.00 billion suggests a positive outlook for the remainder of the fiscal year.
In conclusion, Deere's third-quarter results demonstrate strong operational execution and a positive trajectory for the company, making it a favorable investment for shareholders looking for stability and growth in the agricultural and construction sectors.
Here are the extracted tables in Markdown format:
Note: All amounts in the following tables are in millions.
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 | 2026 | 2025 | % Change | Nine Months Ended | 2026 | 2025 | % Change |
|---|---|---|---|---|---|---|---|
| Net sales | $10,999 | $10,357 | 6% | $30,779 | $28,339 | 9% | |
| Financial and income | 1,353 | 1,426 | -5% | 4,011 | 4,233 | -5% | |
| Other income | 256 | 235 | 9% | 799 | 719 | 11% | |
| Total | $12,608 | $12,018 | 5% | $35,589 | $33,291 | 7% | |
| Costs and Expenses | |||||||
| Cost of sales | $7,939 | $7,570 | 5% | $22,486 | $20,286 | 11% | |
| Research and development expenses | 567 | 556 | 2% | 1,704 | 1,631 | 4% | |
| Selling, administrative and general expenses | 1,220 | 1,217 | 0% | 3,401 | 3,387 | 0% | |
| Other operating expenses | 290 | 281 | 3% | 846 | 817 | 4% | |
| Total | $10,726 | $10,418 | 3% | $30,578 | $28,638 | 7% | |
| Income of Consolidated Group before Income taxes | 529 | 339 | 56% | 1,243 | 905 | 37% | |
| Income of Consolidated Group | 1,353 | 1,261 | 7% | 3,768 | 3,927 | -4% | |
| Equity in income of unconsol. affiliates | 24 | 10 | 140% | 34 | 11 | 209% | |
| Net Income | 1,377 | 1,271 | 8% | 3,802 | 3,938 | -4% | |
| Less: Net loss attr. to noncon. interests | -2 | -18 | -89% | -6 | -24 | -75% | |
| Net Income attr. to Deere & Company | $1,379 | $1,289 | 7% | $3,808 | $3,962 | -4% | |
DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
| August 2, 2026 | November 2, 2025 | July 27, 2025 | |
|---|---|---|---|
| Assets | |||
| Cash and cash equivalents | $8,928 | $8,276 | $8,580 |
| Marketable securities | 1,350 | 1,411 | 1,407 |
| Trade accounts receivable and notes receivable – net | 7,723 | 5,317 | 6,103 |
| Finance receivables – net | 42,860 | 44,575 | 43,930 |
| Finance 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 securitized 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 | |