10-Q · May 28, 2026
Deere & Company reported strong Q2 2026 results, with revenue soaring to $13.369 billion, significantly surpassing the consensus estimate of $11.484 billion, marking a 5% increase from the prior year. EPS also exceeded…
Earnings analysis · 10-Q
DE earnings analysis
Filed August 27, 2026 · Our reading of the company's report
The latest report
Deere delivered a strong third quarter, with $12.608 billion of revenue and $5.10 diluted EPS, both materially above consensus and higher year over year. Growth was led by Construction & Forestry and Small Agriculture &…
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Deere delivered a strong third quarter, with $12.608 billion of revenue and $5.10 diluted EPS, both materially above consensus and higher year over year. Growth was led by Construction & Forestry and Small Agriculture & Turf, while Production & Precision Agriculture declined 6% year over year. Fiscal 2026 net income guidance was raised to $4.75 billion-$5.00 billion, although agricultural-market weakness, tariff volatility, and obligations from the July 8, 2026 repair-access settlement remain material risks.
Reported figures
- Earnings per share
- $5.1
- Segment
- Construction & Forestry: sales increased 18% year over year.
- Segment
- Small Agriculture & Turf: sales increased 12% year over year.
- Segment
- Production & Precision Agriculture: sales declined 6% year over year.
What stood out
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Revenue Beat Estimates
Third-quarter revenue was $12.608 billion, up from $12.02 billion in the prior-year quarter but down from $13.37 billion in the immediately preceding quarter. Revenue exceeded the $10.743 billion estimate by 17.4%.
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EPS Beat Estimates
Diluted EPS was $5.10, up from $4.75 year over year but down from $6.55 sequentially. EPS exceeded the $4.72 estimate by 8.1%.
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Construction & Forestry Accelerated
Construction & Forestry sales grew 18% year over year, making it the strongest reported segment growth driver.
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Small Ag & Turf Improved
Small Agriculture & Turf sales increased 12% year over year, supporting overall profit growth despite weakness in other agricultural markets.
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Full-Year Profit Outlook Raised
Fiscal 2026 net income guidance increased to $4.75 billion-$5.00 billion from $4.50 billion-$5.00 billion, raising the low end by $250 million while maintaining the high end.
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Continued Share Repurchases
Deere repurchased 12.2 million shares under its authorization during the quarter; $7.2 billion remained available under the $18.0 billion plan at quarter-end.
What to watch
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Production Ag Remained Under Pressure
Production & Precision Agriculture sales declined 6% year over year, indicating continued pressure in the company’s largest agricultural market exposure.
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Repair-Access Settlement Obligations
The FTC and state attorneys general lawsuit filed on January 15, 2025 was settled on July 8, 2026, but Deere must provide repair resources on “fair and reasonable terms,” report regularly to the FTC, and submit to FTC compliance oversight.
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Ongoing Litigation Exposure
The company states that adverse outcomes in legal claims or investigations could require substantial damages or fines, service actions, or recalls, even though the reasonably possible range of losses for unresolved actions is currently not expected to materially affect the financial statements.
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Capital Allocation and Tariff Volatility
The $7.2 billion of remaining share-repurchase authorization represents a substantial cash commitment while the company is operating amid agricultural demand weakness and tariff-related volatility.
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No Material Risk-Factor Update
The risk-factor section states that there were no material changes from the most recently filed Form 10-K; therefore, existing risks remain applicable, including market and operating uncertainties.
Management's outlook
Fiscal 2026 net income guidance was raised to $4.75 billion-$5.00 billion from the prior $4.50 billion-$5.00 billion outlook. The report provides no numeric revenue or EPS guidance.
Earlier filings 1
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