Deere & Company
Q3 2026 Earnings
Prior-year Q3 included $61 million pretax impairment charge on overseas battery operations assets. Current quarter includes $110 million in tariff recoveries.
Market Reaction
Did DE Beat Earnings? Q3 2026 Results
Deere & Company posted a decisive earnings beat in its fiscal third quarter of 2026, with GAAP earnings per diluted share of $5.10 clearing the $4.70 consensus estimate by 8.59%, extending the company's streak of beating EPS expectations to five consecutive quarters. Revenue climbed 7.0% year over year to $12.61 billion, well ahead of the $10.73 billion analysts had anticipated. The standout driver was Construction & Forestry, where net sales surged 18% to $3.62 billion and operating profit nearly doubled to $436 million, pushing segment margin to 12.1% from 7.7% a year ago. Results also reflect $110 million in tariff recoveries booked during the quarter, while the year-ago period carried a $61 million pretax impairment charge on overseas battery operations assets, both of which factor into the reported GAAP figures. With momentum building, Deere raised its full-year net income guidance to a range of $4.75 billion to $5.00 billion, and CEO John May signaled confidence that fiscal 2026 will mark the trough of the agricultural equipment cycle, citing improving order trends and shrinking used-equipment inventories.
- Disciplined execution across portfolio amid dynamic market conditions
- Stable U.S. market conditions supporting performance
- Favorable price realization across all equipment segments
- Strong Construction & Forestry shipment volumes driving 18% sales growth
- Small Ag & Turf higher shipment volumes and price realization driving 12% sales growth
- Financial Services benefiting from favorable financing spreads
- $110 million in tariff recoveries during the quarter
“Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio. Our performance underscores the strength of our business, supported by stable U.S. market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed.”
Deere CEO, on the earnings call
Forward Guidance & Outlook
Net income attributable to Deere & Company for fiscal 2026 is forecasted to be $4.75 billion to $5.00 billion. Equipment operations net operating cash flow is forecast at $5.0-$5.5 billion with capital expenditures of approximately $1.3 billion and an effective tax rate of 24-26%. The company believes 2026 will mark the bottom of the current ag equipment cycle. Segment outlook: Production & Precision Ag net sales down ~10% with 11-12% operating margin; Small Ag & Turf net sales up ~15% with 14.5-15.5% operating margin; Construction & Forestry net sales up ~20% with 10.5-11.5% operating margin; Financial Services net income approximately $870 million. Industry outlook: U.S. & Canada Large Ag down 15-20%, Small Ag & Turf flat to up 5%, Europe Ag flat, South America Ag down 15-20%, Asia Ag flat. U.S. & Canada construction equipment up 5-10%, compact construction up ~5%, global roadbuilding up ~10%, global forestry down ~10%.
DE YoY Financials
DE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.