☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 1, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (State or other jurisdiction of incorporation or organization) 36-2382580 (IRS Employer Identification No.) One John Deere Place Moline, Illino ...

Monday, Jefferies analyst Stephen Volkmann cut his rating on Deere stock to Sell from Hold. ...

Group 1 - Deere & Company has been rated as a Hold since June, indicating a cautious stance on the stock despite initial positive performance [1] - The focus is on undervalued companies with strong fundamentals and cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - The analysis highlights a preference for long-term value investing while also acknowledging interest in deal arbitrage opportunities [1] Group 2 - The article emphasizes the importance of understanding the businesses being invested in, with a clear aversion to high-tech and certain consumer goods sectors [1] - There is a noted skepticism towards cryptocurrencies as an investment option [1] - The aim is to connect with like-minded investors through Seeking Alpha, fostering a community focused on informed decision-making and superior returns [1]

Core Viewpoint - The global large agriculture industry is facing challenges, but there is a recovery in demand for construction and small agriculture segments, suggesting that 2026 may represent the bottom of the current cycle, providing a foundation for future growth [1] Financial Performance - Deere reported fiscal first-quarter results that exceeded expectations and raised its fiscal 2026 outlook, indicating that the agriculture equipment cycle may be nearing a bottom [2] - Equipment Operations net sales increased by 17.5% year over year, driven by higher shipment volumes and favorable foreign exchange, despite muted pricing [2] - By segment, Production and Precision Ag increased by 3.1%, Small Ag and Turf rose by 24.0%, and Construction and Forestry grew by 33.9%, primarily due to volume and foreign exchange tailwinds [3] Profitability and Margins - Operating margins for Equipment Operations declined by 184 basis points year over year to 5.9%, largely due to tariff impacts, with management expecting about $1.2 billion in direct tariff expenses in fiscal 2026 [4] Outlook and Guidance - Despite headwinds, Deere improved its fiscal 2026 outlook across most of its portfolio, with an estimated $375 million increase in Equipment Operations net income and a $500 million improvement in operating cash flow at the midpoint [5] - The agricultural backdrop is described as steady, with stable global crop production and improving farm income expectations, supported by recent policy and commodity demand signals [6] Inventory and Production Alignment - Dealer inventory drawdowns through 2025 have better aligned production with retail demand, positioning 2026 as a potential cycle trough and 2027 for a healthier recovery if replenishment follows [7] Analyst Sentiment - Analysts have turned more bullish on Deere, with RBC raising its price forecast to $736, UBS increasing its forecast to $775, and Truist Securities raising its forecast to $793 [8]

Core Viewpoint - Deere & Company reported better-than-expected earnings for its first quarter, with EPS of $2.42 surpassing the analyst estimate of $2.06, and worldwide net sales increasing by 13% to $9.611 billion, exceeding the $7.686 billion estimate [1] Group 1: Earnings Performance - The company's EPS of $2.42 beat the analyst estimate of $2.06 [1] - Worldwide net sales and revenues increased by 13% to $9.611 billion, surpassing the estimate of $7.686 billion [1] Group 2: Future Guidance - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2] - The company projected Production & Precision Agriculture net sales to decline by 5% to 10%, while Small Agriculture & Turf net sales are expected to rise by about 15%, and Construction & Forestry net sales are also projected to increase by about 15% [2] - Financial Services net income is projected to be approximately $840 million [2] Group 3: Market Reaction - Following the earnings announcement, Deere shares fell by 0.7% to trade at $657.34 [2] - Analysts adjusted their price targets on Deere after the earnings report [2]

Core Insights - Deere & Company reported first-quarter earnings that exceeded expectations, with an EPS of $2.42 compared to the analyst estimate of $2.06 [1] - Worldwide net sales and revenues increased by 13% to $9.611 billion, surpassing the estimated $7.686 billion [1] - The company expressed optimism about recovery in demand within construction and small agriculture segments despite challenges in the global large agriculture industry [1] Financial Guidance - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2] - The company projected a decline in Production & Precision Agriculture net sales by 5% to 10%, while Small Agriculture & Turf and Construction & Forestry net sales are expected to increase by about 15% [2] - Financial Services net income is projected to be approximately $840 million [2] Market Reaction - Following the earnings announcement, Deere shares fell by 0.7%, trading at $657.34 [2] - Analysts adjusted their price targets on Deere in response to the earnings report [2]

Core Insights - Deere & Company reported Q1 fiscal 2026 earnings of $2.42 per share, exceeding the Zacks Consensus Estimate of $1.92, although this represents a 24% decline from the previous year [1] - Net sales from equipment operations reached $8 billion, marking a 17.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $7.6 billion [1] - Total net sales, including financial services, amounted to $9.61 billion, up 13% from the prior year, driven by higher shipment volumes despite increased tariffs [2] Segment Performance - The Production & Precision Agriculture segment saw sales grow 3% year-over-year to $3.16 billion, aided by favorable foreign currency translation, while Small Agriculture & Turf sales surged 24% [3] - Construction & Forestry sales increased by 34% year-over-year to $2.67 billion [3] - The cost of sales rose 24.7% from the prior year to $6.28 billion, leading to a 2.9% decline in total gross profit to $1.72 billion [3] 2026 Guidance - Deere expects net income for fiscal 2026 to be between $4.5 billion and $5 billion, an increase from the previous estimate of $4.00-$4.75 billion [4] - Net sales for the Production & Precision Agriculture segment are projected to decrease by 5-10% year-over-year, while sales in Small Agriculture & Turf and Construction & Forestry are expected to rise about 15% each, up from a previous forecast of 10% [5] Market Reaction - Following the earnings report, Deere's shares rose approximately 11.6% on February 19, 2026 [2] - CEO John May expressed optimism regarding the recovery in demand within construction and small agriculture segments, despite anticipating a pre-tax tariff impact of around $1.2 billion for fiscal 2026 [6] ETFs Performance - Several ETFs with significant holdings in Deere stock also experienced gains on February 19, 2026, including: - iShares MSCI Agriculture Producers ETF (VEGI) - Up 3.5% [8] - Global X AgTech & Food Innovation ETF (KROP) - Up 2.8% [9] - First Trust Indxx Global Agriculture ETF (FTAG) - Up 1.1% [10]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that humanoid robots could create a market worth $250 trillion by 2040, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is believed to be redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8]

Core Viewpoint - Deere & Company reported strong first-quarter earnings and revenue, exceeding analyst expectations and raising its full-year profit forecast, leading to a significant increase in share price [1]. Financial Performance - The company achieved a first-quarter net income of $656 million, or $2.42 per share, surpassing analyst estimates of $2.02 per share [2]. - Revenue increased by 13% year over year to $9.61 billion, significantly above the consensus estimate of $7.59 billion [2]. - Despite the revenue growth, net income declined by 25% compared to $869 million, or $3.19 per share, reported in the same quarter a year earlier [2]. - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2]. Segment Performance - The Small Agriculture & Turf segment saw sales increase by 24% to $2.17 billion, with operating profit surging by 58% to $196 million [3]. - The Construction & Forestry segment also experienced strong growth, with sales rising by 34% to $2.67 billion and operating profit more than doubling to $137 million [3].

Core Insights - Deere & Co. shares have surged over 40% since the beginning of the year, reaching a new high after reporting earnings that exceeded analysts' expectations [1][1][1] Financial Performance - Deere reported earnings per share of $2.42 and revenue of $9.61 billion, reflecting a 13% year-over-year increase [1][1][1] - The company expects net income for the full year to be between $4.5 billion and $5 billion, an increase from the previous range of $4 billion to $4.75 billion [1][1][1] Market Drivers - The positive results were attributed to increased infrastructure spending and investments in AI data centers [1][1][1] - CEO John May noted a recovery in demand within the construction and small agriculture segments, despite ongoing challenges in the global large agriculture industry [1][1][1] Future Outlook - Deere anticipates that 2023 could mark the bottom of the current cycle, with expectations for stronger sales growth in 2027 and beyond [1][1][1] - Sales from the Production & Precision Agriculture segment are projected to decline by 5% to 10%, while small agriculture and construction sales are expected to rise by approximately 15% [1][1][1]