Deere Reports First Quarter Net Income of $656 Million

Core Viewpoint - Deere & Company reported a net income of $656 million for the first quarter of fiscal 2026, a decrease from $869 million in the same quarter of the previous year, while increasing its net income guidance for the fiscal year to a range of $4.5 billion to $5.0 billion, indicating resilience and growth potential across diverse customer segments and geographies [1][2][3] Financial Performance - Net income for Q1 2026 was $656 million, or $2.42 per share, compared to $869 million, or $3.19 per share, in Q1 2025, reflecting a 25% decrease [1][2] - Worldwide net sales and revenues increased by 13% to $9,611 million in Q1 2026, up from $8,508 million in Q1 2025 [1][2] - Net sales for the quarter were $8,001 million, compared to $6,809 million in the same quarter of 2025, marking a 17.5% increase [1][2] Segment Performance - Production & Precision Agriculture: - Net sales increased by 3% to $3,163 million, but operating profit decreased by 59% to $139 million due to higher tariffs and unfavorable sales mix [1][2] - Small Agriculture & Turf: - Net sales rose by 24% to $2,168 million, with operating profit increasing by 58% to $196 million, driven by higher shipment volumes [1][2] - Construction & Forestry: - Net sales increased by 34% to $2,670 million, with operating profit rising by 111% to $137 million, attributed to higher shipment volumes and production efficiencies [1][2] Company Outlook - The company forecasts net income for fiscal 2026 to be in the range of $4.5 billion to $5.0 billion, indicating a positive outlook for growth as it transitions out of the current cycle [1][2] - Deere's sustained investment in research and development is expected to yield measurable results, enhancing its product portfolio across all business segments [1][2] Industry Outlook - Agriculture & Turf: - U.S. & Canada: Large Ag expected to decline by 15% to 20%, while Small Ag & Turf is flat to up 5% [1] - Europe: Flat to up 5% [1] - South America: Down approximately 5% [1] - Asia: Flat to down 5% [1] - Construction & Forestry: - U.S. & Canada: Construction Equipment up approximately 5% [1] - Global Forestry flat [1] - Global Roadbuilding up approximately 5% [1]