Deere & Company 8-K
PositiveEarningsGuidance raised
Small Agriculture & Turf and Construction & Forestry volume and pricing gains lift earnings; FY2026 profit outlook raised.
Filed 2026-08-20 06:00 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with raised FY2026 net income guidance. Deere reported higher quarterly revenue and net income, citing disciplined execution and strength in Small Agriculture & Turf and Construction & Forestry, partly offset by lower Production & Precision Agriculture shipments. The company raised its FY2026 net income outlook and said order trends support its view that 2026 will be the bottom of the agricultural equipment cycle.
Key Figures
| Metric | Q3 2026 | Q3 2025 | Y/Y |
|---|---|---|---|
| Net sales and revenues | $12.6B | $12.0B | +5% |
| Total segment operating profit | $1.86B | $1.57B | +18% |
| Net income attributable to Deere & Company | $1.38B | $1.29B | +7% |
| Diluted EPS | $5.10 | $4.75 | +7% |
- YTD net sales and revenues were $35.6B vs $33.3B (+7%); net income attributable to Deere & Company was $3.81B vs $3.96B (-4%), and diluted EPS was $14.06 vs $14.57.
- YTD operating cash flow was $3.25B vs $3.46B, alongside $3.81B of net income attributable to Deere & Company. Share repurchases were $697M vs $1.14B; average diluted shares were 270.7M vs 271.4M. Cash and cash equivalents were $8.93B at 8/2/2026.
- Production & Precision Agriculture sales fell 6% to $4.00B as lower shipment volumes outweighed favorable pricing and currency; operating profit fell 9% to $527M. Small Agriculture & Turf sales rose 12% to $3.38B, with operating profit up 28% to $622M, on higher volume and favorable pricing. Construction & Forestry sales rose 18% to $3.62B and operating profit rose 84% to $436M, primarily on higher volume and favorable pricing. Deere recorded $110M of tariff recoveries in Q3 and $382M YTD.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net income attributable to Deere & Company, GAAP | FY2026 | $4.75B-$5B | — | Raised |
| Net operating cash flow, Equipment Operations | FY2026 | $5B-$5.5B | — | — |
| Effective tax rate, Equipment Operations | FY2026 | 24%-26% | — | — |
| Research and development expenses | FY2026 | Up slightly | — | — |
| Capital expenditures | FY2026 | ≈$1.3B | — | — |
| Net sales, Production & Precision Agriculture | FY2026 | Down ≈10% | — | — |
| Operating margin, Production & Precision Agriculture | FY2026 | 11%-12% | — | — |
| Net sales, Small Agriculture & Turf | FY2026 | Up ≈15% | — | — |
| Operating margin, Small Agriculture & Turf | FY2026 | 14.5%-15.5% | — | — |
| Net sales, Construction & Forestry | FY2026 | Up ≈20% | — | — |
| Operating margin, Construction & Forestry | FY2026 | 10.5%-11.5% | — | — |
| Net income, Financial Services | FY2026 | ≈$870M | — | — |
| Industry unit outlook, U.S. and Canada large agriculture | FY2026 | Down 15%-20% | — | — |
| Industry unit outlook, U.S. and Canada small agriculture and turf | FY2026 | Flat to up 5% | — | — |
| Industry unit outlook, Europe agriculture | FY2026 | Flat | — | — |
| Industry unit outlook, South America tractors and combines | FY2026 | Down 15%-20% | — | — |
| Industry unit outlook, Asia agriculture | FY2026 | Flat | — | — |
| Industry unit outlook, U.S. and Canada construction equipment | FY2026 | Up 5%-10% | — | — |
| Industry unit outlook, U.S. and Canada compact construction equipment | FY2026 | Up ≈5% | — | — |
| Industry unit outlook, global forestry | FY2026 | Down ≈10% | — | — |
| Industry unit outlook, global roadbuilding | FY2026 | Up ≈10% | — | — |
Investor Takeaways
- Q4 FY2026 results are scheduled for 11/25/2026; compare performance with the raised full-year net income range.
- Order trends and used-equipment inventories will indicate whether the agricultural equipment cycle is bottoming as Deere expects.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3