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's third quarter of fiscal 2026, ended August 2, 2026, showed a mixed demand picture: Construction & Forestry and Small Agriculture & Turf expanded, while the largest segment, Production & Precision Agriculture, continued to decline. Management attributed the overall sales increase primarily to higher shipment volumes, favorable price realization, and favorable foreign currency translation. Net income rose despite unfavorable tax items and higher production costs, helped by a $110 million tariff recovery recognized in the quarter. The result depends on large agriculture equipment demand stabilizing; management expects PPA sales to decline for full-year 2026 while CF and SAT improve.
Revenue
$12.61B
+4.91% YoY
EPS (Diluted)
$5.10
+7.37% YoY
Source: SEC XBRL
Deere & Co (DE) reported Q3 FY2026 revenue of $12.61B, up 4.9% year over year. DE's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 5.10 | 4.84 | Beat +5.5% |
| Jun 2026 | 6.55 | 5.87 | Beat +11.5% |
| Mar 2026 | 2.42 | 2.11 | Beat +14.7% |
| Dec 2025 | 3.93 | 3.96 | Miss -0.9% |
Reported EPS of $5.10 versus the $4.84 analyst consensus — a +5.5% beat for Sep 2026.
4 reported segments · SEC XBRL
Segment revenue totals $12.74B; with -$129M of reconciling items (corporate, unallocated and eliminations) it ties to the $12.61B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure DE itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Management expects overall net sales to increase in fiscal 2026, with the anticipated decline in Production & Precision Agriculture more than offset by improvements in Construction & Forestry and Small Agriculture & Turf; large agriculture sales in North America are expected to remain subdued and soften in South America.
Source: 10-Q Item 2 MD&A
The Supreme Court invalidated certain tariffs in February 2026, and Deere recorded tariff recoveries of $110 million in the third quarter and $382 million in the first nine months; incremental import tariffs net of recoveries were $502 million in the first nine months of 2026.
Source: 10-Q Item 2 MD&A
Construction & Forestry sales grew in the quarter due to higher U.S. shipment volumes and favorable price realization; operating profit rose on price realization, partly offset by higher selling, administrative, general and R&D expenses.
Source: 10-Q Item 2 MD&A
PPA sales decreased in the quarter as lower shipment volumes in Brazil and Europe more than offset favorable price realization and foreign currency translation; operating profit declined due to lower volumes/mix and higher material costs.
Source: 10-Q Item 2 MD&A
Financial Services revenue declined on a lower average portfolio, but net income increased as favorable financing spreads more than offset the lower portfolio, with interest expense down on lower average borrowings and rates.
Source: 10-Q Item 2 MD&A
Deere entered into a settlement with the FTC and plaintiff states on July 8, 2026, agreeing to provide certain repair resources to farmers and independent repair providers on fair and reasonable terms and submit to FTC oversight.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
The Production & Precision Agriculture segment, Deere's largest at 32.2% of segment revenue, reported a 6.3% year-over-year revenue decline and lower operating profit in Q3 FY2026, driven by lower shipment volumes in North America and Brazil. Persistent weakness in large agricultural equipment could weigh on overall results.
Source: 10-Q Segment Data (XBRL)
Operating cash flow for the first nine months of fiscal 2026 was $3.25 billion, down 6.2% from $3.464 billion in the prior-year period, due in part to increased receivables and inventories. Weaker cash generation may reduce flexibility for capital returns and investment.
Source: 10-Q Cash Flow Statement (XBRL)
Deere's debt-to-equity ratio was 2.84 at the end of Q3 FY2026, indicating significant reliance on debt financing. Although total liabilities decreased 3.6% year-over-year to $79.57 billion, high leverage increases sensitivity to interest rates and refinancing conditions.
Source: 10-Q Balance Sheet (XBRL)
Return on equity was 4.93% and return on assets was 1.28% for the period, reflecting low profitability relative to the company's capital base. If large agriculture demand remains subdued, these returns may remain under pressure.
Source: 10-Q Income Statement (XBRL)
Financial Services revenue declined 2.5% year-over-year in Q3 FY2026 due to a lower average receivable and lease portfolio, and the average balance of receivables and leases financed was 2% lower. Continued portfolio shrinkage could limit earnings growth even if financing spreads remain favorable.
Source: 10-Q Segment Data (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.61 $B | 12.02 $B | +4.91% |
Net Income $B | 1.38 $B | 1.29 $B | +6.98% |
EPS (Basic) $ | 5.11 $ | 4.76 $ | +7.35% |
EPS (Diluted) $ | 5.10 $ | 4.75 $ | +7.37% |
R&D Expense $M | 567.00 $M | 556.00 $M | +1.98% |
SG&A Expense $B | 1.22 $B | 1.22 $B | +0.25% |
Answers draw on this SEC filing and the data on this page
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.
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.