DEDeere & CoQ1 FY2026Earnings Analysis

MixedFundamentals score4 / 10

How is this scored?

Base score5
Revenue up more than 5% YoY+1
Net income down more than 20% YoY-2

Total4 / 10

Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.

Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →

AI Takeaway

Deere & Company reported Q1 FY2026 revenue of $9.61B (+13.0% YoY), but net income fell 24.5% to $656M as higher costs and margin pressures weighed on profitability despite the top-line rebound.

Revenue

$9.61B

+12.96% YoY

EPS (Diluted)

$2.42

-24.14% YoY

Filed Feb 26, 2026 · Analysis updated Jun 23, 2026 · Source: SEC EDGAR 10-Q filing

Next DE earnings expected Aug 20, 2026

Revenue Growth, Margins & Profitability

Source: SEC XBRL

Deere & Co (DE) reported Q1 FY2026 revenue of $9.61B, up 13.0% year over year. Operating cash flow was negative $890M. DE's fiscal Q1 FY2026 corresponds to calendar Q1 2026.

DE vs Analyst Expectations

Last 4 quarters: 3 beats

Quarter	Actual EPS (USD)	Consensus (USD)	Result
Jun 2026	6.55	5.87	Beat +11.5%
Mar 2026This filing	2.42	2.11	Beat +14.7%
Dec 2025	3.93	3.96	Miss -0.9%
Sep 2025	4.93	4.77	Beat +3.4%

Reported EPS of $2.42 versus the $2.11 analyst consensus — a +14.7% beat for Mar 2026.

DE Q1 FY2026 Management Discussion Highlights

Compiled by AI from this SEC filing

Revenue Growth Driven by Equipment Demand Recovery

Total revenue rose 13.0% YoY to $9.61B in Q1 FY2026, suggesting a partial recovery in equipment demand after prior-period softness. This top-line improvement reflects stronger net sales across Deere's equipment segments.

Source: 10-Q Income Statement Data

Net Income Declined Sharply Despite Revenue Gains

Net income dropped 24.5% YoY to $656M, indicating that cost pressures, unfavorable mix, or higher financing costs more than offset the revenue increase. Net margin compressed to approximately 6.8% from a higher prior-year level.

Source: 10-Q Income Statement Data

R&D Investment Continues to Rise

R&D expense increased 5.3% YoY to $554M, reflecting Deere's continued commitment to precision agriculture technology and product innovation even in a challenging margin environment.

Source: 10-Q Income Statement Data

Stockholders' Equity Strengthened Materially

Stockholders' equity grew 17.0% YoY to $26.30B, while total liabilities declined 4.3% to $77.08B, improving the overall balance sheet quality and reducing leverage modestly.

Source: 10-Q Balance Sheet Data

Operating Cash Flow Negative but Improving

Operating cash flow was -$890M in Q1 FY2026, an improvement from -$1.13B in the prior-year period (+21.4% YoY), consistent with typical seasonal patterns for Deere's fiscal first quarter when working capital builds ahead of the planting season.

Source: 10-Q Cash Flow Statement Data

DE Q1 FY2026 Risk Factors

Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low

Margin Compression Risk

high

Despite a 13.0% revenue increase, net income fell 24.5%, implying significant cost headwinds or pricing pressure. If input costs remain elevated or product mix shifts toward lower-margin equipment, profitability could remain under pressure in subsequent quarters.

Source: 10-Q Income Statement Data

High Financial Leverage

high

Deere's debt-to-equity ratio stands at approximately 2.93x, reflecting the substantial debt load associated with its financial services (John Deere Financial) segment. Rising interest rates or credit deterioration among equipment buyers could increase funding costs and credit losses.

Source: 10-Q Balance Sheet Data

Seasonal and Cyclical Cash Flow Volatility

medium

Operating cash flow was negative at -$890M in Q1 FY2026, driven by seasonal working capital build. While this is a recurring pattern, prolonged weakness in agricultural commodity prices could delay customer purchases and extend cash flow pressure.

Source: 10-Q Cash Flow Statement Data

Shareholder Return Sustainability

medium

Share buybacks declined 31.5% YoY to $302M, and financing cash outflows surged to -$2.49B (vs. -$923M prior year), suggesting increased debt repayment or capital allocation shifts. Reduced buyback activity may signal caution about near-term cash generation.

Source: 10-Q Cash Flow Statement Data

Flat SG&A with Rising R&D Creates Operating Leverage Risk

low

SG&A remained flat at $972M while R&D rose to $554M, meaning total operating expenses are growing relative to the prior period. If revenue growth moderates, the fixed cost base could weigh more heavily on operating margins.

Source: 10-Q Income Statement Data

DE Financial Charts & Detailed Metrics

Revenue & Net Income Trend

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Key Metrics

Income Statement

Metric	Current	Previous	YoY Change
Revenue $B	9.61 $B	8.51 $B	+12.96%
Net Income $M	656.00 $M	869.00 $M	-24.51%
EPS (Basic) $	2.43 $	3.20 $	-24.06%
EPS (Diluted) $	2.42 $	3.19 $	-24.14%
R&D Expense $M	554.00 $M	526.00 $M	+5.32%
SG&A Expense $M	972.00 $M	972.00 $M	0.00%

Balance Sheet

Metric	Current	Previous	YoY Change
Total Assets $B	103.44 $B	103.12 $B	+0.31%
Total Liabilities $B	77.08 $B	80.56 $B	-4.32%
Stockholders' Equity $B	26.30 $B	22.48 $B	+17.00%
Cash & Equivalents $B	6.80 $B	6.60 $B	+2.98%

Cash Flow

Metric	Current	Previous	YoY Change
Operating Cash Flow $B	-0.89 $B	-1.13 $B	+21.38%
Investing Cash Flow $B	1.82 $B	1.42 $B	+28.67%
Financing Cash Flow $B	-2.49 $B	-0.92 $B	-169.77%
Share Buybacks $M	302.00 $M	441.00 $M	-31.52%
D&A $M	590.00 $M	549.00 $M	+7.47%

Key Ratios

Metric	Current	Previous	YoY Change
Net Margin	6.8%	—	—
ROE	2.5%	—	—
ROA	0.6%	—	—
Debt to Equity	2.93	—	—

DE Q1 FY2026 Earnings FAQ

Answers draw on this SEC filing and the data on this page

Did Deere beat earnings estimates in Q1 FY2026?

Reported EPS of $2.42 versus the $2.11 analyst consensus — a +14.7% beat for Q1 FY2026.

Why did Deere's net income fall in Q1 FY2026 despite higher revenue?

Deere's revenue grew 13.0% YoY to $9.61B in Q1 FY2026, but net income dropped 24.5% to $656M, implying that cost of goods sold, operating expenses, or financing costs rose faster than sales. R&D spending increased 5.3% to $554M and the net margin compressed to approximately 6.8% from roughly 10.2% in the prior-year period.

What is Deere's financial health as of Q1 FY2026?

Deere's balance sheet shows total assets of $103.4B, stockholders' equity of $26.3B (up 17% YoY), and cash of $6.8B, indicating solid asset backing. However, the debt-to-equity ratio of 2.93x reflects significant leverage, primarily from the John Deere Financial services segment.

How did Deere's cash flow perform in Q1 FY2026?

Operating cash flow was -$890M in Q1 FY2026, an improvement from -$1.13B in Q1 FY2025, consistent with seasonal working capital build ahead of the planting season. Financing cash outflows increased sharply to -$2.49B from -$923M in the prior year, suggesting higher debt repayments or other capital allocation activity.

What are the key risks for Deere stock highlighted in the Q1 FY2026 report?

Key risks include significant margin compression (net income fell 24.5% despite 13% revenue growth), high financial leverage with a debt-to-equity ratio of 2.93x, and seasonal cash flow volatility with operating cash flow negative at -$890M. Additionally, the 31.5% decline in share buybacks to $302M may signal management caution about near-term cash generation.

When is the next DE earnings date?

Deere & Co (DE) is next expected to report earnings on Aug 20, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.

More DE Earnings Reports

DE Q2 FY2026

Deere & Company posted Q2 FY2026 revenue of $13.37B (+4.7% YoY) but net income slipped 1.7% to $1.77B as higher costs offset top-line growth, while operating cash flow surged 83.5% year-to-date to $1.04B.

DEDeere & CoQ1 FY2026

MixedFundamentals score4 / 10

How is this scored?

Base score5
Revenue up more than 5% YoY+1
Net income down more than 20% YoY-2

Total4 / 10

Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.

Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →

AI Takeaway

Deere & Company reported Q1 FY2026 revenue of $9.61B (+13.0% YoY), but net income fell 24.5% to $656M as higher costs and margin pressures weighed on profitability despite the top-line rebound.

Quarter

Actual EPS (USD)

Consensus (USD)

Result

Jun 2026

6.55

5.87

Beat +11.5%

Mar 2026This filing

2.42

2.11

Beat +14.7%

Dec 2025

3.93

3.96

Miss -0.9%

Sep 2025

4.93

4.77

Beat +3.4%

Metric

Current

YoY Change

Revenue $B

9.61

+12.96%

Net Income $M

656.00

-24.51%

EPS (Basic) $

2.43

-24.06%

EPS (Diluted) $

2.42

-24.14%

R&D Expense $M

554.00

+5.32%

SG&A Expense $M

972.00

0.00%

Metric

Current

YoY Change

Total Assets $B

103.44

+0.31%

Total Liabilities $B

77.08

-4.32%

Stockholders' Equity $B

26.30

+17.00%

Cash & Equivalents $B

6.80

+2.98%

Metric

Current

YoY Change

Operating Cash Flow $B

-0.89

+21.38%

Investing Cash Flow $B

1.82

+28.67%

Financing Cash Flow $B

-2.49

-169.77%

Share Buybacks $M

302.00

-31.52%

D&A $M

590.00

+7.47%

Metric

Current

YoY Change

Net Margin

6.8%

—

ROE

2.5%

—

ROA

0.6%

—

Debt to Equity

2.93

—