Deere & Company (NYSE:DE) reported Thursday first-quarter 2026 net income of $656 million, or $2.42 per diluted share, for the period ended Feb. 1, 2026, compared with $869 million, or $3.19 per diluted share, a year earlier, as shares traded higher following the results.
Deere’s EPS of $2.42 beat the $2.06 analyst estimate. Worldwide net sales and revenues increased 13% to $9.611 billion, beating the $7.686 billion estimate.
Net sales were $8.001 billion, up from $6.809 billion in the prior-year quarter.
“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,” said John May, chairman and CEO of John Deere.
“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”
Segment Performance
Production & Precision Agriculture net sales increased 3% to $3.163 billion, while operating profit fell to $139 million from $338 million, and operating margin declined to 4.4% from 11.0%. Deere said operating profit decreased primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.
Small Agriculture & Turf net sales rose 24% to $2.168 billion. Operating profit increased to $196 million from $124 million, and the operating margin improved to 9.0% from 7.1%, driven by higher shipment volumes and price realization, partially offset by higher tariffs.
Construction & Forestry net sales increased 34% to $2.670 billion. Operating profit rose to $137 million from $65 million, and operating margin improved to 5.1% from 3.3%, reflecting higher shipment volumes and production efficiencies, partially offset by higher tariffs.
Financial Services net income increased to $244 million from $230 million, primarily due to favorable financing spreads and a lower provision for credit losses.
Cash Flow and Balance Sheet
Net cash used for operating activities was $(890) million, compared with $(1.132) billion a year earlier. Cash and cash equivalents were $6.798 billion at quarter’s end. Deere reported short-term borrowings of $14.392 billion and long-term borrowings of $41.804 billion.
Outlook
Deere raised fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion. The company projected Production & Precision Agriculture net sales down 5% to 10%, Small Agriculture & Turf net sales up about 15%, and Construction & Forestry net sales up about 15%, with Financial Services net income of about $840 million.
“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,” stated May.
DE Price Action: Deere shares were up 10.21% at $653.86 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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