Deere & Company reported net income of $656 million for the first quarter ended Feb. 1, 2026, or $2.42 per share, compared with $869 million, or $3.19 per share, for the quarter ended Jan. 26, 2025.
Worldwide net sales and revenues increased 13% to $9.611 billion in the quarter. Net sales rose to $8.001 billion from $6.809 billion a year earlier.
“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.”
Company outlook
The company increased its fiscal 2026 net income forecast to a range of $4.5 billion to $5.0 billion.
“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,” May said. “These advancements underscore the value of maintaining a robust portfolio that spans broad markets and regions worldwide, which should position us for success as we transition out of the current cycle.”
Segment results
Production & Precision Agriculture
Net sales increased 3% to $3.163 billion. Operating profit fell 59% to $139 million. The company said sales rose due to the positive effects of foreign currency translation. Operating profit decreased primarily due to higher tariffs, unfavorable sales mix and higher warranty expenses.
Small Agriculture & Turf
Net sales increased 24% to $2.168 billion. Operating profit rose 58% to $196 million. The company said sales increased due to higher shipment volumes and favorable foreign currency translation. Operating profit increased primarily due to higher shipment volumes and sales mix and price realization, partially offset by higher tariffs.
Construction & Forestry
Net sales increased 34% to $2.670 billion. Operating profit rose 111% to $137 million. The company said sales increased due to higher shipment volumes and favorable foreign currency translation. Operating profit increased primarily due to higher shipment volumes and production efficiencies, partially offset by higher tariffs.
Financial Services
Net income increased 6% to $244 million. The company said the increase was primarily due to favorable financing spreads and a lower provision for credit losses, partially offset by a favorable special item recorded in the prior period.
Industry outlook
For fiscal 2026, the company expects:
- U.S. and Canada large agriculture to be down 15% to 20%
- U.S. and Canada small agriculture and turf to be flat to up 5%
- Europe to be flat to up 5%
- South America tractors and combines to be down about 5%
- Asia to be flat to down 5%
- U.S. and Canada construction equipment to be up about 5%
- Compact construction equipment to be up about 5%
- Global forestry to be flat
- Global roadbuilding to be up about 5%
The company said Production & Precision Agriculture net sales are projected to be down 5% to 10% for the year, while Small Agriculture & Turf and Construction & Forestry net sales are each expected to be up about 15%. Financial Services net income is projected to be about $840 million.
Results for the prior period were affected by special items, including favorable net discrete tax items recorded in the first quarter of 2025 and valuation allowance changes related to Banco John Deere S.A. The company deconsolidated Banco John Deere S.A. in February 2025 and now accounts for its investment using the equity method.