John Deere(DE) - 2026 Q1 - Quarterly Results

Financial Performance - Deere & Company reported a net income of $656 million for Q1 2026, down 25% from $869 million in Q1 2025, resulting in earnings per share of $2.42 compared to $3.19[1][25] - Total net sales and revenues increased by 13% to $9,611 million in Q1 2026, up from $8,508 million in Q1 2025, with net sales of $8,001 million compared to $6,809 million[2][24] - Net income for the three months ended February 1, 2026, was $655 million, down from $867 million for the same period in 2025, representing a decrease of about 24.4%[29] - Net income for the Equipment segment decreased to $411 million in Q1 2026 from $637 million in Q1 2025, a decline of 35.5%[40] Segment Performance - Production & Precision Agriculture segment net sales rose by 3% to $3,163 million, while operating profit decreased by 59% to $139 million due to higher tariffs and warranty expenses[4][6] - Small Agriculture & Turf segment net sales increased by 24% to $2,168 million, with operating profit up 58% to $196 million, driven by higher shipment volumes[5][10] - Construction & Forestry segment net sales surged by 34% to $2,670 million, with operating profit more than doubling to $137 million, attributed to production efficiencies and higher shipment volumes[6][13] Financial Outlook - The company forecasts net income for fiscal 2026 to be in the range of $4.5 billion to $5.0 billion, reflecting an increase in guidance[3][5] - The outlook for the agricultural business remains cautious, with potential impacts from global trade policies, commodity prices, and macroeconomic conditions[9][21] - Deere's diverse customer segments and geographies are expected to provide resilience and growth opportunities moving forward[10][5] Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $890 million in Q1 2026, compared to $1,132 million in Q1 2025, indicating an improvement of about 21.4%[29] - Net cash provided by investing activities was $1,822 million in Q1 2026, up from $1,416 million in Q1 2025, reflecting increased cash inflows[40] - Financing activities resulted in a net cash outflow of $2,490 million in Q1 2026, compared to an outflow of $923 million in Q1 2025, indicating higher financing costs[40] Assets and Liabilities - Total assets decreased to $103,436 million as of February 1, 2026, from $105,996 million on November 2, 2025, reflecting a decline of approximately 1.5%[27] - Total liabilities decreased to $77,079 million as of February 1, 2026, from $79,989 million on November 2, 2025, a reduction of about 3.6%[27] - The company reported a decrease in financing receivables to $42,113 million as of February 1, 2026, from $44,575 million on November 2, 2025, a decline of approximately 5.5%[27] Equity and Cash Position - The company’s total stockholders' equity increased to $26,307 million as of February 1, 2026, from $25,956 million on November 2, 2025, reflecting a growth of about 1.4%[27] - Cash, cash equivalents, and restricted cash at the end of the period were $7,073 million, compared to $6,907 million at the end of the same period in 2025, an increase of approximately 2.4%[29] - Cash and cash equivalents decreased to $6,798 million from $8,276 million, reflecting a decline of approximately 18%[38] Research and Development - The company is investing in research and development to launch innovative products across all business segments, positioning itself for growth as it transitions out of the current cycle[8][4] - Research and development expenses were $554 million in Q1 2026, up from $526 million in Q1 2025, reflecting an increase of approximately 5.3%[35]