Deere & Company Delivers Q1 FY2026 Results
Deere & Company announced first-quarter fiscal 2026 results, posting net income of $656 million, or $2.42 per diluted share. This marks a 25% decline from $869 million, or $3.19 per share, recorded in the prior-year quarter.3617
Worldwide net sales and revenues climbed 13% to $9.611 billion, with equipment net sales rising to $8.001 billion from $6.809 billion a year earlier.369
Segment Performance Overview
Production & Precision Agriculture net sales increased 3% to $3.163 billion, though operating profit fell 59% to $139 million, yielding a 4.4% margin amid higher tariffs, sales mix shifts, and warranty costs.36
Small Agriculture & Turf saw net sales surge 24% to $2.168 billion, with operating profit up 58% to $196 million and a margin expansion to 9.0%, fueled by volume growth and pricing.36
Construction & Forestry delivered robust gains, with net sales up 34% to $2.670 billion and operating profit doubling 111% to $137 million, achieving a 5.1% margin through higher volumes and efficiencies.36
Financial Services net income rose 6% to $244 million, supported by better financing spreads despite prior special items.36
FY2026 Outlook Raised
Deere updated its fiscal 2026 net income forecast to $4.5 billion to $5.0 billion. Segment projections include Production & Precision Agriculture net sales down 5-10%, Small Ag & Turf up about 15%, and Construction & Forestry up around 15%. Financial Services anticipates $840 million in net income.3629
Industry expectations point to U.S./Canada large ag down 15-20%, small ag & turf flat to +5%; construction up ~5%.36
Leadership Insights
John May, Chairman and CEO, commented, “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.”36
May added, “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.”36
