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Deere

DE Q1 2026 Earnings

Reported Feb 19, 2026 at 6:03 AM ET · SEC Source

Q1 26 EPS

$2.42

BEAT +15.42%

Est. $2.10

Q1 26 Revenue

$9.61B

BEAT +28.07%

Est. $7.50B

vs S&P Since Q1 26

-18.2%

TRAILING MARKET

DE -12.9% vs S&P +5.3%

Market Reaction

Did DE Beat Earnings? Q1 2026 Results

Deere & Company delivered a first-quarter fiscal 2026 earnings beat that masked a more complicated story underneath, as the agricultural and construction equipment giant posted EPS of $2.42 against a consensus estimate of $2.10, a 15.42% beat, while … Read more Deere & Company delivered a first-quarter fiscal 2026 earnings beat that masked a more complicated story underneath, as the agricultural and construction equipment giant posted EPS of $2.42 against a consensus estimate of $2.10, a 15.42% beat, while revenue of $9.61 billion topped expectations by 28.07% and rose 16.3% year over year. The standout driver was a sharp rebound in Construction & Forestry, where net sales surged 34% to $2.67 billion and operating profit more than doubled, while Small Agriculture & Turf also exceeded expectations. Those gains helped offset a bruising quarter for Production & Precision Agriculture, where tariff headwinds, unfavorable sales mix, and elevated warranty costs caused operating profit to collapse 59% even as net income for the company overall fell 25% year over year to $656 million. Despite the profit pressure, Deere raised its full-year fiscal 2026 net income guidance to a range of $4.50 billion to $5.00 billion, with CEO John May characterizing 2026 as the cycle's bottom, a note of encouragement for investors tracking the company's long-term capital returns.

Key Takeaways

  • • Recovery in demand within construction and small agriculture segments
  • • Higher shipment volumes in Small Ag & Turf and Construction & Forestry
  • • Positive foreign currency translation effects across all equipment segments
  • • Price realization in Small Ag & Turf (~+2.0%) and Construction & Forestry (~+2.5%)
  • • Favorable financing spreads and lower provision for credit losses in Financial Services
  • • Production efficiencies in Construction & Forestry

DE Forward Guidance & Outlook

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.5 billion to $5.0 billion. Segment-level outlook: Production & Precision Ag net sales down 5 to 10% with 11-13% operating margins; Small Ag & Turf net sales up ~15% with 13.5-15% operating margins; Construction & Forestry net sales up ~15% with 9-11% operating margins. Financial Services net income forecast at approximately $840 million. Equipment operations net operating cash flow expected at $4.5-5.5 billion, capital expenditures approximately $1.4 billion, effective tax rate 25-27%. Industry outlook: U.S. & Canada large ag down 15-20%, small ag & turf flat to up 5%, Europe ag flat to up 5%, South America ag down ~5%, Asia ag flat to down 5%. U.S. & Canada construction equipment up ~5%, compact construction up ~5%, global roadbuilding up ~5%, global forestry flat.

24/7 Wall St

DE YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

DE Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“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. 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.”

— John May, Q1 2026 Earnings Press Release

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