Deere & Company (DE) Q1 2026 earnings summary

Executive summary

• Net sales and revenues rose 13% year-over-year to $9.61 billion for the quarter, with equipment operations up 18% to $8.51 billion, driven by higher sales volumes and favorable currency translation.

• Net income attributable to shareholders was $656 million ($2.42 per share), down 25% from $869 million ($3.19 per share) year-over-year, primarily due to higher tariffs and the absence of prior period tax benefits.

• All business segments delivered higher net sales year-over-year, with Small Ag & Turf and Construction & Forestry growing over 20%.

• Order books strengthened and shipments were ahead of plan, with resilience across diverse customer segments and geographies.

• The company returned nearly $750 million to shareholders via dividends and share repurchases in the quarter.

Financial highlights

• Equipment operations net sales increased 18% year-over-year to $8.51 billion.

• Net income attributable to the company was $656 million, a 25% decrease year-over-year; diluted EPS was $2.42, down from $3.19.

• Production & Precision Ag net sales rose 3% to $3.163 billion, with operating margin dropping to 4.4% from 11.0% due to higher tariffs and warranty costs.

• Small Ag & Turf net sales increased 24% to $2.17 billion, with operating margin improving to 9% and operating profit up 58% to $196 million.

• Construction & Forestry net sales jumped 34% to $2.67 billion, with operating margin rising to 5.1% and operating profit more than doubling to $137 million.

Outlook and guidance

• Fiscal 2026 net income guidance raised to $4.5–$5.0 billion.

• Equipment operations net sales projected to grow mid-single digits for the year.

• Production & Precision Ag net sales forecasted down 5–10% for the year, with 11–13% operating margin.

• Small Ag & Turf net sales expected up 15%, with 13.5–15% operating margin.

• Construction & Forestry net sales forecasted up 15%, with 9–11% operating margin.

• Cash flow from equipment operations projected at $4.5–$5.5 billion.