Deere Reports Third Quarter Net Income of $1.379 Billion

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Disciplined execution drives stronger-than-expected results in a dynamic market.
Net income guidance improved to $4.75 billion to $5.00 billion.
Order book trends reinforce 2026 as the bottom of the ag equipment cycle.

MOLINE, Ill., Aug. 20, 2026 /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $1.379 billion for the third quarter ended August 2, 2026, or $5.10 per share, compared with net income of $1.289 billion, or $4.75 per share, for the quarter ended July 27, 2025. For the first nine months of the year, net income attributable to Deere & Company was $3.808 billion, or $14.06 per share, compared with $3.962 billion, or $14.57 per share, for the same period last year.

Worldwide net sales and revenues increased 5 percent, to $12.608 billion, for the third quarter of 2026 and rose 7 percent, to $35.589 billion, for nine months. Net sales were $10.999 billion for the quarter and $30.779 billion for nine months, compared with $10.357 billion and $28.338 billion last year, respectively.

"Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio," said John C. May, chairman and chief executive officer. "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."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.75 billion to $5.00 billion.

"As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle," May said. "Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation."

Deere & Company	Third Quarter					Year to Date
$ in millions, except per share amounts	2026		2025		% Change	2026		2025		% Change
Net sales and revenues	$	12,608	$	12,018	5 %	$	35,589	$	33,290	7 %
Net income	$	1,379	$	1,289	7 %	$	3,808	$	3,962	-4 %
Fully diluted EPS	$	5.10	$	4.75		$	14.06	$	14.57

Results for the prior periods presented were affected by special items. See Note 2 of the financial statements for further details. The company recorded tariff recoveries in the third quarter and first nine months of 2026 of $110 million and $382 million, respectively. The tariff impact for each segment is primarily included in the "Production Costs" category below.

Production & Precision Agriculture	Third Quarter
$ in millions	2026		2025		% Change
Net sales	$	3,998	$	4,273	-6 %
Operating profit	$	527	$	580	-9 %
Operating margin		13.2 %		13.6 %

Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Operating profit decreased primarily due to lower shipment volumes / sales mix and higher production costs, partially offset by favorable price realization and the effects of foreign currency exchange.

Production & Precision Agriculture Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions

Small Agriculture & Turf	Third Quarter
$ in millions	2026		2025		% Change
Net sales	$	3,383	$	3,025	12 %
Operating profit	$	622	$	485	28 %
Operating margin		18.4 %		16.0 %

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs.

Small Agriculture & Turf Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions

Construction & Forestry	Third Quarter
$ in millions	2026		2025		% Change
Net sales	$	3,618	$	3,059	18 %
Operating profit	$	436	$	237	84 %
Operating margin		12.1 %		7.7 %

Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to favorable price realization, partially offset by higher SA&G and R&D costs.

Construction & Forestry Operating Profit Third Quarter 2026 Compared to Third Quarter 2025 $ in millions

Financial Services	Third Quarter
$ in millions	2026		2025		% Change
Net income	$	219	$	205	7 %

Financial Services net income increased primarily due to favorable financing spreads, partially offset by the impact of a lower average portfolio.

Industry Outlook for Fiscal 2026
Agriculture & Turf
U.S. & Canada:
Large Ag						Down 15 to 20%
Small Ag & Turf						Flat to up 5%
Europe						Flat
South America (Tractors & Combines)						Down 15 to 20%
Asia						Flat

Construction & Forestry
U.S. & Canada:
Construction Equipment						Up 5 to 10%
Compact Construction Equipment						Up ~5%
Global Forestry						Down ~10%
Global Roadbuilding						Up ~10%

Deere Segment Outlook for Fiscal 2026

		Currency	Price
$ in millions	Net Sales	Translation	Realization
Production & Precision Ag	Down ~10%	+2.5 %	~ +1.0%
Small Ag & Turf	Up ~15%	+0.5 %	~ +1.5%
Construction & Forestry	Up ~20%	+1.5 %	~ +3.0%

Financial Services	Net Income	~ $870

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally, while others could more heavily affect a particular line of business.

Forward-looking statements are based on information currently available to the company and the company's current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs including the availability and price of fertilizer, government farm programs, and availability of transport for crops
construction and forestry activity, which is affected by factors such as housing starts and supply, real estate and housing prices, levels of residential and non-residential construction, public and private infrastructure development, and government policies and regulations
macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer sentiment and practices due to slower economic growth or a recession, and regional or global liquidity constraints
the uncertainty of government policies and actions with respect to the global trade environment, including increased and contested tariffs announced by the U.S. government and retaliatory trade regulations
political, economic, and social instability in the geographies in which the company operates
worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and the resulting impacts on the demand for the company's equipment
rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities
accurately forecasting customer demand for products and services, and adequately managing inventory
selling products domestically or internationally, managing increased costs of production, absorbing or passing on increased expenses, as well as accurately predicting financial results and industry trends
availability and price of raw materials, components, and whole goods
delays or disruptions in the company's supply chain, including those arising from geopolitical conflicts
changes in climate patterns, unfavorable weather events, and natural disasters
suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages
higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions
attracting, developing, engaging, and retaining qualified employees
adapting in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology
realizing the anticipated benefits of the company's Smart Industrial Operating Model, achieving the company's Leap Ambitions, and executing the company's related business strategies in production systems, precision technologies, and aftermarket support
the company's dealer network's development and implementation of successful sales plans, management of new and used inventory, distribution of the company's products, and support and service for the company's precision technology solutions
achieving anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
negative claims or publicity that damage the company's reputation or brand
the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge
labor relations and contracts, including work stoppages and other disruptions
security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products
leveraging artificial intelligence and machine learning within the company's business processes
changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environment (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, product liability, right-to-repair, tariffs, tax, telematics, and telecommunications
governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products
investigations, claims, lawsuits, or other legal proceedings
loss of or challenges to intellectual property rights

Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

DEERE & COMPANY THIRD QUARTER 2026 PRESS RELEASE (In millions of dollars) Unaudited
	Three Months Ended					Nine Months Ended
	August 2		July 27		%	August 2		July 27		%
	2026		2025		Change	2026		2025		Change
Net sales and revenues:
Production & Precision Ag net sales	$	3,998	$	4,273	-6	$	11,664	$	12,571	-7
Small Ag & Turf net sales		3,383		3,025	+12		9,036		7,767	+16
Construction & Forestry net sales		3,618		3,059	+18		10,079		8,000	+26
Financial Services revenues		1,371		1,418	-3		4,121		4,273	-4
Other revenues		238		243	-2		689		679	+1
Total net sales and revenues	$	12,608	$	12,018	+5	$	35,589	$	33,290	+7

Operating profit: *
Production & Precision Ag	$	527	$	580	-9	$	1,372	$	2,066	-34
Small Ag & Turf		622		485	+28		1,538		1,182	+30
Construction & Forestry		436		237	+84		1,134		681	+67
Financial Services		271		266	+2		823		740	+11
Total operating profit		1,856		1,568	+18		4,867		4,669	+4
Reconciling items **		52		60	-13		184		198	-7
Income taxes		(529)		(339)	+56		(1,243)		(905)	+37
Net income attributable to Deere & Company	$	1,379	$	1,289	+7	$	3,808	$	3,962	-4

*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of Financial Services includes the effect of interest expense and foreign exchange gains and losses.
**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars and shares except per share amounts) Unaudited
	Three Months Ended				Nine Months Ended
	2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	10,999	$	10,357	$	30,779	$	28,338
Finance and interest income		1,353		1,426		4,011		4,233
Other income		256		235		799		719
Total		12,608		12,018		35,589		33,290

Costs and Expenses
Cost of sales		7,939		7,570		22,486		20,215
Research and development expenses		567		556		1,704		1,631
Selling, administrative and general expenses		1,220		1,217		3,401		3,387
Interest expense		710		794		2,141		2,408
Other operating expenses		290		281		846		817
Total		10,726		10,418		30,578		28,458

Income of Consolidated Group before Income Taxes		1,882		1,600		5,011		4,832
Provision for income taxes		529		339		1,243		905

Income of Consolidated Group		1,353		1,261		3,768		3,927
Equity in income of unconsolidated affiliates		24		10		34		11

Net Income		1,377		1,271		3,802		3,938
Less: Net loss attributable to noncontrolling interests		(2)		(18)		(6)		(24)
Net Income Attributable to Deere & Company	$	1,379	$	1,289	$	3,808	$	3,962

Per Share Data
Basic	$	5.11	$	4.76	$	14.10	$	14.61
Diluted		5.10		4.75		14.06		14.57
Dividends declared		1.62		1.62		4.86		4.86
Dividends paid		1.62		1.62		4.86		4.71

Average Shares Outstanding
Basic		269.8		270.7		270.1		271.1
Diluted		270.7		271.4		270.8		271.9

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
	August 2		November 2		July 27
	2026		2025		2025
Assets
Cash and cash equivalents	$	8,928	$	8,276	$	8,580
Marketable securities		1,350		1,411		1,407
Trade accounts and notes receivable – net		7,723		5,317		6,103
Financing receivables – net		42,860		44,575		43,930
Financing receivables securitized – net		6,316		6,831		7,948
Other receivables		2,466		2,403		2,826
Equipment on operating leases – net		7,400		7,600		7,512
Inventories		7,811		7,406		7,713
Property and equipment – net		8,006		8,079		7,713
Goodwill		4,466		4,188		4,209
Other intangible assets – net		940		892		926
Retirement benefits		3,541		3,273		3,182
Deferred income taxes		2,343		2,284		2,209
Other assets		3,457		3,461		3,559
Total Assets	$	107,607	$	105,996	$	107,817

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	17,115	$	13,796	$	14,607
Short-term securitization borrowings		6,095		6,596		7,610
Accounts payable and accrued expenses		13,668		13,909		13,582
Deferred income taxes		411		434		489
Long-term borrowings		40,626		43,544		44,429
Retirement benefits and other liabilities		1,651		1,710		1,836
Total liabilities		79,566		79,989		82,553

Redeemable noncontrolling interest		44		51		84

Stockholders' Equity
Total Deere & Company stockholders' equity		27,990		25,950		25,175
Noncontrolling interests		7		6		5
Total stockholders' equity		27,997		25,956		25,180
Total Liabilities and Stockholders' Equity	$	107,607	$	105,996	$	107,817

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
	2026		2025
Cash Flows from Operating Activities
Net income	$	3,802	$	3,938
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		205		258
Depreciation and amortization		1,787		1,668
Impairments and other adjustments				29
Share-based compensation expense		116		104
Credit for deferred income taxes		(61)		(102)
Changes in assets and liabilities:
Receivables related to sales		(1,252)		(494)
Inventories		(443)		(526)
Accounts payable and accrued expenses		(266)		(717)
Accrued income taxes payable/receivable		(119)		(147)
Retirement benefits		(367)		(813)
Other		(152)		266
Net cash provided by operating activities		3,250		3,464

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		19,922		19,712
Proceeds from maturities and sales of marketable securities		389		359
Proceeds from sales of equipment on operating leases		1,479		1,408
Cost of receivables acquired (excluding receivables related to sales)		(19,139)		(18,962)
Acquisitions of businesses, net of cash acquired		(455)		(89)
Purchases of marketable securities		(361)		(598)
Purchases of property and equipment		(716)		(852)
Cost of equipment on operating leases acquired		(1,933)		(2,009)
Collections of receivables from unconsolidated affiliates		197		334
Collateral on derivatives – net		(63)		127
Other		(145)		(231)
Net cash used for investing activities		(825)		(801)

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		3,205		(2,060)
Proceeds from borrowings issued (original maturities greater than three months)		5,373		10,707
Payments of borrowings (original maturities greater than three months)		(8,338)		(7,743)
Repurchases of common stock		(697)		(1,136)
Dividends paid		(1,316)		(1,282)
Other		(55)		(43)
Net cash used for financing activities		(1,828)		(1,557)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		20		108

Net Increase in Cash, Cash Equivalents, and Restricted Cash		617		1,214
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		8,533		7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	9,150	$	8,847

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY Condensed Notes to Interim Consolidated Financial Statements (In millions of dollars) Unaudited

(1)	Acquisitions

	In 2026, the company completed several acquisitions to advance the capabilities of its existing technology offerings, including the February acquisition of Tenna LLC (Tenna), a U.S. construction technology company that provides mixed-fleet equipment operations and asset tracking solutions, for a purchase price of $439 million, net of cash acquired. Tenna was assigned to the CF segment. The company also acquired other small-scale businesses assigned to the PPA, SAT, and CF segments for a combined purchase price consideration of $16 million, net of cash acquired. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets.

	In 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the PPA and CF segments. Most of the purchase price for these acquisitions was allocated to goodwill and other intangible assets.

(2)	Special Items

	Impairment

	In the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." The charge is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.

	Discrete Tax Items

	In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

	Banco John Deere S.A.

	In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market.

	The BJD business was reclassified as held for sale in 2024. In January 2025, the valuation allowance on assets held for sale decreased, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 million recorded in "Selling, administrative and general expenses" in the nine months ended July 27, 2025. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows.

	The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income (loss) of unconsolidated affiliates" within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

Summary of 2025 Special Items

The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025.

	Three Months									Nine Months
	PPA		SAT		CF		FS	Total		PPA		SAT		CF		FS		Total
2025 Expense (benefit):
Impairment	$	28	$	17	$	16		$	61	$	28	$	17	$	16			$	61
BJD measurement																$	(32)		(32)
Total expense (benefit)	$	28	$	17	$	16		$	61	$	28	$	17	$	16	$	(32)	$	29

(3)

The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company's Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.

DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	10,999	$	10,357									$	10,999	$	10,357
Finance and interest income		149		133	$	1,383	$	1,433	$	(179)	$	(140)		1,353		1,426	¹
Other income		191		190		122		111		(57)		(66)		256		235	^{2, 3, 4}
Total		11,339		10,680		1,505		1,544		(236)		(206)		12,608		12,018

Costs and Expenses
Cost of sales		7,950		7,578						(11)		(8)		7,939		7,570	⁴
Research and development expenses		567		556										567		556
Selling, administrative and general expenses		988		999		234		220		(2)		(2)		1,220		1,217	⁴
Interest expense		99		102		661		720		(50)		(28)		710		794	¹
Interest compensation to Financial Services		129		112						(129)		(112)					¹
Other operating expenses		(23)		(8)		357		345		(44)		(56)		290		281	^{3, 4, 5}
Total		9,710		9,339		1,252		1,285		(236)		(206)		10,726		10,418

Income before Income Taxes		1,629		1,341		253		259						1,882		1,600
Provision for income taxes		472		274		57		65						529		339

Income after Income Taxes		1,157		1,067		196		194						1,353		1,261
Equity in income (loss) of unconsolidated affiliates		1		(1)		23		11						24		10

Net Income		1,158		1,066		219		205						1,377		1,271
Less: Net loss attributable to noncontrolling interests		(2)		(18)										(2)		(18)
Net Income Attributable to Deere & Company	$	1,160	$	1,084	$	219	$	205					$	1,379	$	1,289

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	30,779	$	28,338									$	30,779	$	28,338
Finance and interest income		379		351	$	4,093	$	4,268	$	(461)	$	(386)		4,011		4,233	¹
Other income		616		580		408		350		(225)		(211)		799		719	^{2, 3, 4}
Total		31,774		29,269		4,501		4,618		(686)		(597)		35,589		33,290

Costs and Expenses
Cost of sales		22,518		20,239						(32)		(24)		22,486		20,215	⁴
Research and development expenses		1,704		1,631										1,704		1,631
Selling, administrative and general expenses		2,775		2,761		632		632		(6)		(6)		3,401		3,387	⁴
Interest expense		294		282		1,973		2,206		(126)		(80)		2,141		2,408	¹
Interest compensation to Financial Services		334		306						(334)		(306)					¹
Other operating expenses		(59)		(47)		1,093		1,045		(188)		(181)		846		817	^{3, 4, 5}
Total		27,566		25,172		3,698		3,883		(686)		(597)		30,578		28,458

Income before Income Taxes		4,208		4,097		803		735						5,011		4,832
Provision for income taxes		1,059		752		184		153						1,243		905

Income after Income Taxes		3,149		3,345		619		582						3,768		3,927
Equity in income (loss) of unconsolidated affiliates				(4)		34		15						34		11

Net Income		3,149		3,341		653		597						3,802		3,938
Less: Net loss attributable to noncontrolling interests		(6)		(24)										(6)		(24)
Net Income Attributable to Deere & Company	$	3,155	$	3,365	$	653	$	597					$	3,808	$	3,962

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	Aug 2		Nov 2		Jul 27		Aug 2		Nov 2		Jul 27		Aug 2		Nov 2		Jul 27		Aug 2		Nov 2		Jul 27
	2026		2025		2025		2026		2025		2025		2026		2025		2025		2026		2025		2025
Assets
Cash and cash equivalents	$	6,607	$	6,340	$	6,641	$	2,321	$	1,936	$	1,939							$	8,928	$	8,276	$	8,580
Marketable securities		155		217		240		1,195		1,194		1,167								1,350		1,411		1,407
Receivables from Financial Services		5,364		4,649		3,649							$	(5,364)	$	(4,649)	$	(3,649)							⁶
Trade accounts and notes receivable – net		1,472		1,316		1,335		8,442		5,900		7,064		(2,191)		(1,899)		(2,296)		7,723		5,317		6,103	⁷
Financing receivables – net		106		88		84		42,754		44,487		43,846								42,860		44,575		43,930
Financing receivables securitized – net		2		1		1		6,314		6,830		7,947								6,316		6,831		7,948
Other receivables		1,926		1,809		2,013		594		658		867		(54)		(64)		(54)		2,466		2,403		2,826	⁸
Equipment on operating leases – net								7,400		7,600		7,512								7,400		7,600		7,512
Inventories		7,811		7,406		7,713														7,811		7,406		7,713
Property and equipment – net		7,975		8,047		7,680		31		32		33								8,006		8,079		7,713
Goodwill		4,466		4,188		4,209														4,466		4,188		4,209
Other intangible assets – net		940		892		926														940		892		926
Retirement benefits		3,439		3,181		3,092		104		94		92		(2)		(2)		(2)		3,541		3,273		3,182
Deferred income taxes		2,487		2,507		2,471		47		46		44		(191)		(269)		(306)		2,343		2,284		2,209	⁹
Other assets		2,371		2,218		2,357		1,098		1,244		1,211		(12)		(1)		(9)		3,457		3,461		3,559
Total Assets	$	45,121	$	42,859	$	42,411	$	70,300	$	70,021	$	71,722	$	(7,814)	$	(6,884)	$	(6,316)	$	107,607	$	105,996	$	107,817

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	417	$	414	$	461	$	16,698	$	13,382	$	14,146							$	17,115	$	13,796	$	14,607
Short-term securitization borrowings		1		1				6,094		6,595		7,610								6,095		6,596		7,610
Payables to equipment operations								5,364		4,649		3,649	$	(5,364)	$	(4,649)	$	(3,649)							⁶
Accounts payable and accrued expenses		12,796		12,757		12,795		3,129		3,116		3,146		(2,257)		(1,964)		(2,359)		13,668		13,909		13,582	^{7, 8}
Deferred income taxes		326		347		393		276		356		402		(191)		(269)		(306)		411		434		489	⁹
Long-term borrowings		8,907		8,756		8,789		31,719		34,788		35,640								40,626		43,544		44,429
Retirement benefits and other liabilities		1,586		1,646		1,767		67		66		71		(2)		(2)		(2)		1,651		1,710		1,836
Total liabilities		24,033		23,921		24,205		63,347		62,952		64,664		(7,814)		(6,884)		(6,316)		79,566		79,989		82,553

Redeemable noncontrolling interest		44		51		84														44		51		84

Stockholders' Equity
Total Deere & Company stockholders' equity		27,990		25,950		25,175		6,953		7,069		7,058		(6,953)		(7,069)		(7,058)		27,990		25,950		25,175	¹⁰
Noncontrolling interests		7		6		5														7		6		5
Financial Services' equity		(6,953)		(7,069)		(7,058)								6,953		7,069		7,058							¹⁰
Adjusted total stockholders' equity		21,044		18,887		18,122		6,953		7,069		7,058								27,997		25,956		25,180
Total Liabilities and Stockholders' Equity	$	45,121	$	42,859	$	42,411	$	70,300	$	70,021	$	71,722	$	(7,814)	$	(6,884)	$	(6,316)	$	107,607	$	105,996	$	107,817

⁶	Elimination of receivables / payables between equipment operations and Financial Services.
⁷	Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
⁸	Reclassification of other receivables / payables.
⁹	Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
¹⁰	Elimination of Financial Services' equity.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended August 2, 2026 and July 27, 2025 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Cash Flows from Operating Activities
Net income	$	3,149	$	3,341	$	653	$	597					$	3,802	$	3,938
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit losses		(1)		18		206		240						205		258
Depreciation and amortization		1,042		965		821		804	$	(76)	$	(101)		1,787		1,668	¹¹
Impairments and other adjustments				61				(32)								29
Share-based compensation expense										116		104		116		104	¹²
Distributed earnings of Financial Services		794		1,066						(794)		(1,066)					¹³
Provision (credit) for deferred income taxes		20		(242)		(81)		140						(61)		(102)
Changes in assets and liabilities:
Receivables related to sales		(123)		(66)						(1,129)		(428)		(1,252)		(494)	^{14, 16}
Inventories		(330)		(423)						(113)		(103)		(443)		(526)	¹⁵
Accounts payable and accrued expenses		61		(646)		(34)		69		(293)		(140)		(266)		(717)	¹⁶
Accrued income taxes payable/receivable		(99)		(89)		(20)		(58)						(119)		(147)
Retirement benefits		(359)		(770)		(8)		(43)						(367)		(813)
Other		(142)		123		71		182		(81)		(39)		(152)		266	^{11, 12, 15}
Net cash provided by operating activities		4,012		3,338		1,608		1,899		(2,370)		(1,773)		3,250		3,464

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)						20,261		20,178		(339)		(466)		19,922		19,712	¹⁴
Proceeds from maturities and sales of marketable securities		108		27		281		332						389		359
Proceeds from sales of equipment on operating leases						1,479		1,408						1,479		1,408
Cost of receivables acquired (excluding receivables related to sales)						(19,351)		(19,189)		212		227		(19,139)		(18,962)	¹⁴
Acquisitions of businesses, net of cash acquired		(455)		(89)										(455)		(89)
Purchases of marketable securities		(42)		(133)		(319)		(465)						(361)		(598)
Purchases of property and equipment		(714)		(851)		(2)		(1)						(716)		(852)
Cost of equipment on operating leases acquired						(2,086)		(2,148)		153		139		(1,933)		(2,009)	¹⁵
Increase in investment in Financial Services		(5)								5							¹⁷
Increase in trade and wholesale receivables						(1,550)		(807)		1,550		807					¹⁴
Collections of receivables from unconsolidated affiliates				189		197		145						197		334
Collateral on derivatives – net		1		4		(64)		123						(63)		127
Other		(72)		(75)		(73)		(156)						(145)		(231)
Net cash used for investing activities		(1,179)		(928)		(1,227)		(580)		1,581		707		(825)		(801)

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		18		294		3,187		(2,354)						3,205		(2,060)
Change in intercompany receivables/payables		(735)		(660)		735		660
Proceeds from borrowings issued (original maturities greater than three months)		430		2,188		4,943		8,519						5,373		10,707
Payments of borrowings (original maturities greater than three months)		(262)		(863)		(8,076)		(6,880)						(8,338)		(7,743)
Repurchases of common stock		(697)		(1,136)										(697)		(1,136)
Capital investment from Equipment Operations						5				(5)							¹⁷
Dividends paid		(1,316)		(1,282)		(794)		(1,066)		794		1,066		(1,316)		(1,282)	¹³
Other		(27)		(25)		(28)		(18)						(55)		(43)
Net cash used for financing activities		(2,589)		(1,484)		(28)		(1,139)		789		1,066		(1,828)		(1,557)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		22		96		(2)		12						20		108

Net Increase in Cash, Cash Equivalents, and Restricted Cash		266		1,022		351		192						617		1,214
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		6,364		5,643		2,169		1,990						8,533		7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	6,630	$	6,665	$	2,520	$	2,182					$	9,150	$	8,847

¹¹	Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
¹²	Reclassification of share-based compensation expense.
¹³	Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.
¹⁴	Primarily reclassification of receivables related to the sale of equipment.
¹⁵	Reclassification of direct lease agreements with retail customers.
¹⁶	Reclassification of sales incentive accruals on receivables sold to Financial Services.
¹⁷	Elimination of change in investment from equipment operations to Financial Services.

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SOURCE Deere & Company

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Deere Reports Third Quarter Net Income of $1.379 Billion

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