Deere Reports Second Quarter Net Income of $1.773 Billion

PR Newswire

MOLINE, Ill., May 21, 2026

Strong execution across segments drives solid performance, reflecting portfolio strength.
Net income guidance maintained, reinforcing confidence amid market volatility.
Investment in new products and technology supports long-term growth and value creation.

MOLINE, Ill., May 21, 2026 /PRNewswire/ — Deere & Company (NYSE: DE) reported net income of $1.773 billion for the second quarter ended May 3, 2026, or $6.55 per share, compared with net income of $1.804 billion, or $6.64 per share, for the quarter ended April 27, 2025. For the first six months of the year, net income attributable to Deere & Company was $2.429 billion, or $8.97 per share, compared with $2.673 billion, or $9.82 per share, for the same period last year.

Worldwide net sales and revenues increased 5 percent, to $13.369 billion, for the second quarter of 2026 and rose 8 percent, to $22.981 billion, for six months. Net sales were $11.778 billion for the quarter and $19.779 billion for six months, compared with $11.171 billion and $17.980 billion last year, respectively.

“Our performance in the current market environment demonstrates the strength of our diversified portfolio. This is particularly reflected in the strong outcomes achieved by our Small Ag and Construction & Forestry divisions during this year,” stated John May, chairman and CEO of John Deere. “As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth.”

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.5 billion to $5.0 billion.

“While our customers face ongoing challenges, John Deere remains firmly committed to supporting their success through disciplined operations and resilience,” said May. “By continuing to invest in innovation through the cycle and leveraging the strength of our dealer network, we are well positioned to deliver increasing value for customers and shareholders as market conditions improve.”

Deere & Company	Second Quarter					Year to Date
$ in millions, except per share amounts	2026		2025		% Change	2026		2025		% Change
Net sales and revenues	$	13,369	$	12,763	5 %	$	22,981	$	21,272	8 %
Net income	$	1,773	$	1,804	-2 %	$	2,429	$	2,673	-9 %
Fully diluted EPS	$	6.55	$	6.64		$	8.97	$	9.82

The prior period year to date results presented were affected by special items. See Note 2 of the financial statements for further details. On February 20, 2026, the Supreme Court of the United States issued a decision invalidating tariffs imposed pursuant to the International Emergency Economic Powers Act (IEEPA). The company recorded a recovery of $272 million for refund claims related to IEEPA tariffs which have been filed and accepted by the U.S. Customs and Border Protection. The tariff impact for each segment is primarily included in the “Production Costs” category below.

Production & Precision Agriculture	Second Quarter
$ in millions	2026		2025		% Change
Net sales	$	4,503	$	5,230	-14 %
Operating profit	$	706	$	1,148	-39 %
Operating margin		15.7 %		22.0 %

Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by the positive effects of foreign currency translation. Operating profit decreased primarily due to lower shipment volumes and higher production costs, partially offset by the favorable effects of foreign currency exchange.

Small Agriculture & Turf	Second Quarter
$ in millions	2026		2025		% Change
Net sales	$	3,485	$	2,994	16 %
Operating profit	$	719	$	574	25 %
Operating margin		20.6 %		19.2 %

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes and favorable price realization.

Construction & Forestry	Second Quarter
$ in millions	2026		2025		% Change
Net sales	$	3,790	$	2,947	29 %
Operating profit	$	561	$	379	48 %
Operating margin		14.8 %		12.9 %

Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes and favorable price realization, partially offset by higher production costs.

Financial Services	Second Quarter
$ in millions	2026		2025		% Change
Net income	$	190	$	161	18 %

Financial Services net income increased primarily due to favorable financing spreads and favorable derivative valuation adjustments, partially offset by the impact of a lower average portfolio.

Industry Outlook for Fiscal 2026
Agriculture & Turf
U.S. & Canada:
Large Ag						Down 15 to 20%
Small Ag & Turf						Flat to up 5%
Europe						Flat to up 5%
South America (Tractors & Combines)						Down ~15%
Asia						Flat

Construction & Forestry
U.S. & Canada:
Construction Equipment						Up ~5%
Compact Construction Equipment						Up ~5%
Global Forestry						Down ~5%
Global Roadbuilding						Up ~10%

Deere Segment Outlook for Fiscal 2026

		Currency	Price
$ in millions	Net Sales	Translation	Realization
Production & Precision Ag	Down 5 to 10%	+3.0 %	~ +1.0%
Small Ag & Turf	Up ~15%	+1.0 %	~ +1.5%
Construction & Forestry	Up ~20%	+2.0 %	~ +2.5%

Financial Services	Net Income	~ $860

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled “Company Outlook & Summary,” “Industry Outlook for Fiscal 2026,” “Deere Segment Outlook for Fiscal 2026,” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company’s operations generally while others could more heavily affect a particular line of business.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs including the availability and price of fertilizer, government farm programs, and availability of transport for crops
macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer practices due to slower economic growth or a recession, regional or global liquidity constraints
the uncertainty of government policies and actions with respect to the global trade environment including increased and contested tariffs announced by the U.S. government and retaliatory trade regulations
political, economic, and social instability in the geographies in which the company operates
worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company’s equipment
rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities
accurately forecasting customer demand for products and services, and adequately managing inventory
uncertainty of the company’s ability to sell products domestically or internationally, manage increased costs of production, absorb or pass on increased expenses, and accurately predict financial results and industry trends
availability and price of raw materials, components, and whole goods
delays or disruptions in the company’s supply chain, including those arising from geopolitical conflicts
changes in climate patterns, unfavorable weather events, and natural disasters
suppliers’ and manufacturers’ business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages
higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company’s products and solutions
the ability to attract, develop, engage, and retain qualified employees
the company’s ability to adapt in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology
the ability to execute business strategies, including the company’s Smart Industrial Operating Model and refined Leap Ambitions
dealer practices and their ability to manage new and used inventory, distribute the company’s products, and to provide support and service for precision technology solutions
the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
negative claims or publicity that damage the company’s reputation or brand
the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge
labor relations and contracts, including work stoppages and other disruptions
security breaches, cybersecurity attacks, technology failures, and other disruptions to the company’s information technology infrastructure and products
leveraging artificial intelligence and machine learning within the company’s business processes
changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, product liability, tariffs, tax, telematics, and telecommunications
governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company’s products
investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers
loss of or challenges to intellectual property rights

Further information concerning the company or its businesses, including factors that could materially affect the company’s financial results, is included in the company’s filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Report on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

DEERE & COMPANY
SECOND QUARTER 2026 PRESS RELEASE
(In millions of dollars) Unaudited
	Three Months Ended					Six Months Ended
	May 3		April 27		%	May 3		April 27		%
	2026		2025		Change	2026		2025		Change
Net sales and revenues:
Production & Precision Ag net sales	$	4,503	$	5,230	-14	$	7,666	$	8,297	-8
Small Ag & Turf net sales		3,485		2,994	+16		5,653		4,742	+19
Construction & Forestry net sales		3,790		2,947	+29		6,460		4,941	+31
Financial Services revenues		1,366		1,385	-1		2,751		2,856	-4
Other revenues		225		207	+9		451		436	+3
Total net sales and revenues	$	13,369	$	12,763	+5	$	22,981	$	21,272	+8

Operating profit: *
Production & Precision Ag	$	706	$	1,148	-39	$	845	$	1,486	-43
Small Ag & Turf		719		574	+25		916		698	+31
Construction & Forestry		561		379	+48		698		444	+57
Financial Services		251		207	+21		552		473	+17
Total operating profit		2,237		2,308	-3		3,011		3,101	-3
Reconciling items **		54		35	+54		132		138	-4
Income taxes		(518)		(539)	-4		(714)		(566)	+26
Net income attributable to Deere & Company	$	1,773	$	1,804	-2	$	2,429	$	2,673	-9


*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of Financial Services includes the effect of interest expense and foreign exchange gains and losses.

**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Six Months Ended May 3, 2026 and April 27, 2025
(In millions of dollars and shares except per share amounts) Unaudited
	Three Months Ended				Six Months Ended
	2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	11,778	$	11,171	$	19,779	$	17,980
Finance and interest income		1,314		1,354		2,658		2,807
Other income		277		238		544		485
Total		13,369		12,763		22,981		21,272

Costs and Expenses
Cost of sales		8,266		7,609		14,547		12,646
Research and development expenses		583		549		1,137		1,075
Selling, administrative and general expenses		1,209		1,197		2,181		2,169
Interest expense		712		784		1,431		1,614
Other operating expenses		306		287		556		536
Total		11,076		10,426		19,852		18,040

Income of Consolidated Group before Income Taxes		2,293		2,337		3,129		3,232
Provision for income taxes		518		539		714		566

Income of Consolidated Group		1,775		1,798		2,415		2,666
Equity in income (loss) of unconsolidated affiliates		(5)		3		10		1

Net Income		1,770		1,801		2,425		2,667
Less: Net loss attributable to noncontrolling interests		(3)		(3)		(4)		(6)
Net Income Attributable to Deere & Company	$	1,773	$	1,804	$	2,429	$	2,673

Per Share Data
Basic	$	6.57	$	6.65	$	8.99	$	9.85
Diluted		6.55		6.64		8.97		9.82
Dividends declared		1.62		1.62		3.24		3.24
Dividends paid		1.62		1.62		3.24		3.09

Average Shares Outstanding
Basic		270.1		271.1		270.2		271.3
Diluted		270.8		271.8		270.9		272.1

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	May 3		November 2		April 27
	2026		2025		2025
Assets
Cash and cash equivalents	$	7,905	$	8,276	$	7,991
Marketable securities		1,430		1,411		1,272
Trade accounts and notes receivable – net		7,571		5,317		6,748
Financing receivables – net		42,916		44,575		43,029
Financing receivables securitized – net		6,100		6,831		7,765
Other receivables		2,582		2,403		2,975
Equipment on operating leases – net		7,514		7,600		7,336
Inventories		8,188		7,406		7,870
Property and equipment – net		8,035		8,079		7,555
Goodwill		4,513		4,188		4,094
Other intangible assets – net		975		892		964
Retirement benefits		3,450		3,273		3,133
Deferred income taxes		2,361		2,284		2,088
Other assets		3,461		3,461		3,483
Total Assets	$	107,001	$	105,996	$	106,303

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	15,632	$	13,796	$	15,948
Short-term securitization borrowings		5,929		6,596		7,562
Accounts payable and accrued expenses		13,653		13,909		13,345
Deferred income taxes		422		434		496
Long-term borrowings		42,261		43,544		42,811
Retirement benefits and other liabilities		1,644		1,710		1,763
Total liabilities		79,541		79,989		81,925

Redeemable noncontrolling interest		47		51		83

Stockholders’ Equity
Total Deere & Company stockholders’ equity		27,406		25,950		24,287
Noncontrolling interests		7		6		8
Total stockholders’ equity		27,413		25,956		24,295
Total Liabilities and Stockholders’ Equity	$	107,001	$	105,996	$	106,303

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended May 3, 2026 and April 27, 2025
(In millions of dollars) Unaudited
	2026		2025
Cash Flows from Operating Activities
Net income	$	2,425	$	2,667
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		127		174
Depreciation and amortization		1,184		1,104
Impairments and other adjustments				(32)
Share-based compensation expense		69		54
Provision (credit) for deferred income taxes		(68)		11
Changes in assets and liabilities:
Receivables related to sales		(1,084)		(1,069)
Inventories		(738)		(772)
Accounts payable and accrued expenses		(333)		(898)
Accrued income taxes payable/receivable		(5)		(147)
Retirement benefits		(290)		(794)
Other		(245)		270
Net cash provided by operating activities		1,042		568

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		14,385		14,348
Proceeds from maturities and sales of marketable securities		258		245
Proceeds from sales of equipment on operating leases		1,019		1,001
Cost of receivables acquired (excluding receivables related to sales)		(13,157)		(12,744)
Acquisition of business, net of cash acquired		(439)
Purchases of marketable securities		(284)		(347)
Purchases of property and equipment		(451)		(555)
Cost of equipment on operating leases acquired		(1,295)		(1,254)
Collections of receivables from unconsolidated affiliates		152		234
Collateral on derivatives – net		(8)		27
Other		(87)		(176)
Net cash provided by investing activities		93		779

Cash Flows from Financing Activities
Net proceeds in short-term borrowings (original maturities three months or less)		2,246		551
Proceeds from borrowings issued (original maturities greater than three months)		3,451		5,156
Payments of borrowings (original maturities greater than three months)		(5,935)		(4,837)
Repurchases of common stock		(500)		(838)
Dividends paid		(878)		(843)
Other		(11)		(10)
Net cash used for financing activities		(1,627)		(821)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		94		20

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(398)		546
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		8,533		7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	8,135	$	8,179

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited

(1) Acquisition

In February 2026, the company acquired Tenna LLC (Tenna), a U.S. construction technology company that offers mixed-fleet equipment operations and asset tracking solutions. The purchase price, net of cash acquired, was $439 million. Tenna was assigned to the CF segment. Most of the purchase price for this acquisition was allocated to goodwill and other intangible assets.

(2) Special Items

Discrete Tax Items

In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a 50% owner of the company’s wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company’s incremental risk as it continues to grow in the Brazilian market.

The BJD business was reclassified as held for sale in 2024. In January 2025, the valuation allowance on assets held for sale decreased, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 million recorded in “Selling, administrative and general expenses” in the six months ended April 27, 2025. The valuation allowance changes are presented in “Impairments and other adjustments” in the statements of consolidated cash flows.

The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in “Equity in income (loss) of unconsolidated affiliates” within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in “Other assets” and “Other receivables,” respectively.

(3) The consolidated financial statements represent the consolidation of all the company’s subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company’s Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.

DEERE & COMPANY
(4) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended May 3, 2026 and April 27, 2025
(In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	11,778	$	11,171									$	11,778	$	11,171
Finance and interest income		110		108	$	1,359	$	1,380	$	(155)	$	(134)		1,314		1,354	¹
Other income		212		187		150		121		(85)		(70)		277		238	^{2, 3, 4}
Total		12,100		11,466		1,509		1,501		(240)		(204)		13,369		12,763

Costs and Expenses
Cost of sales		8,277		7,617						(11)		(8)		8,266		7,609	⁴
Research and development expenses		583		549										583		549
Selling, administrative and general expenses		980		961		231		238		(2)		(2)		1,209		1,197	⁴
Interest expense		102		94		649		721		(39)		(31)		712		784	¹
Interest compensation to Financial Services		116		103						(116)		(103)					¹
Other operating expenses		9		12		369		335		(72)		(60)		306		287	^{3, 4, 5}
Total		10,067		9,336		1,249		1,294		(240)		(204)		11,076		10,426

Income before Income Taxes		2,033		2,130		260		207						2,293		2,337
Provision for income taxes		452		490		66		49						518		539

Income after Income Taxes		1,581		1,640		194		158						1,775		1,798
Equity in income (loss) of unconsolidated affiliates		(1)				(4)		3						(5)		3

Net Income		1,580		1,640		190		161						1,770		1,801
Less: Net loss attributable to noncontrolling interests		(3)		(3)										(3)		(3)
Net Income Attributable to Deere & Company	$	1,583	$	1,643	$	190	$	161					$	1,773	$	1,804

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF INCOME
For the Six Months Ended May 3, 2026 and April 27, 2025
(In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Net Sales and Revenues
Net sales	$	19,779	$	17,980									$	19,779	$	17,980
Finance and interest income		230		217	$	2,710	$	2,835	$	(282)	$	(245)		2,658		2,807	¹
Other income		425		391		287		239		(168)		(145)		544		485	^{2, 3, 4}
Total		20,434		18,588		2,997		3,074		(450)		(390)		22,981		21,272

Costs and Expenses
Cost of sales		14,568		12,662						(21)		(16)		14,547		12,646	⁴
Research and development expenses		1,137		1,075										1,137		1,075
Selling, administrative and general expenses		1,787		1,761		398		412		(4)		(4)		2,181		2,169	⁴
Interest expense		195		178		1,313		1,487		(77)		(51)		1,431		1,614	¹
Interest compensation to Financial Services		205		194						(205)		(194)					¹
Other operating expenses		(37)		(38)		736		699		(143)		(125)		556		536	^{3, 4, 5}
Total		17,855		15,832		2,447		2,598		(450)		(390)		19,852		18,040

Income before Income Taxes		2,579		2,756		550		476						3,129		3,232
Provision for income taxes		587		477		127		89						714		566

Income after Income Taxes		1,992		2,279		423		387						2,415		2,666
Equity in income (loss) of unconsolidated affiliates		(1)		(3)		11		4						10		1

Net Income		1,991		2,276		434		391						2,425		2,667
Less: Net loss attributable to noncontrolling interests		(4)		(6)										(4)		(6)
Net Income Attributable to Deere & Company	$	1,995	$	2,282	$	434	$	391					$	2,429	$	2,673

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	May 3		Nov 2		Apr 27		May 3		Nov 2		Apr 27		May 3		Nov 2		Apr 27		May 3		Nov 2		Apr 27
	2026		2025		2025		2026		2025		2025		2026		2025		2025		2026		2025		2025
Assets
Cash and cash equivalents	$	5,917	$	6,340	$	6,331	$	1,988	$	1,936	$	1,660							$	7,905	$	8,276	$	7,991
Marketable securities		173		217		139		1,257		1,194		1,133								1,430		1,411		1,272
Receivables from Financial Services		4,642		4,649		2,497							$	(4,642)	$	(4,649)	$	(2,497)							⁶
Trade accounts and notes receivable – net		1,579		1,316		1,429		8,001		5,900		7,406		(2,009)		(1,899)		(2,087)		7,571		5,317		6,748	⁷
Financing receivables – net		102		88		82		42,814		44,487		42,947								42,916		44,575		43,029
Financing receivables securitized – net		1		1		2		6,099		6,830		7,763								6,100		6,831		7,765
Other receivables		2,062		1,809		2,009		573		658		1,009		(53)		(64)		(43)		2,582		2,403		2,975	⁸
Equipment on operating leases – net								7,514		7,600		7,336								7,514		7,600		7,336
Inventories		8,188		7,406		7,870														8,188		7,406		7,870
Property and equipment – net		8,004		8,047		7,523		31		32		32								8,035		8,079		7,555
Goodwill		4,513		4,188		4,094														4,513		4,188		4,094
Other intangible assets – net		975		892		964														975		892		964
Retirement benefits		3,351		3,181		3,046		101		94		89		(2)		(2)		(2)		3,450		3,273		3,133
Deferred income taxes		2,532		2,507		2,377		45		46		42		(216)		(269)		(331)		2,361		2,284		2,088	⁹
Other assets		2,358		2,218		2,349		1,126		1,244		1,152		(23)		(1)		(18)		3,461		3,461		3,483
Total Assets	$	44,397	$	42,859	$	40,712	$	69,549	$	70,021	$	70,569	$	(6,945)	$	(6,884)	$	(4,978)	$	107,001	$	105,996	$	106,303

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	397	$	414	$	241	$	15,235	$	13,382	$	15,707							$	15,632	$	13,796	$	15,948
Short-term securitization borrowings		1		1		1		5,928		6,595		7,561								5,929		6,596		7,562
Payables to equipment operations								4,642		4,649		2,497	$	(4,642)	$	(4,649)	$	(2,497)							⁶
Accounts payable and accrued expenses		12,600		12,757		12,180		3,138		3,116		3,313		(2,085)		(1,964)		(2,148)		13,653		13,909		13,345	^7, ⁸
Deferred income taxes		331		347		405		307		356		422		(216)		(269)		(331)		422		434		496	⁹
Long-term borrowings		8,857		8,756		8,685		33,404		34,788		34,126								42,261		43,544		42,811
Retirement benefits and other liabilities		1,579		1,646		1,695		67		66		70		(2)		(2)		(2)		1,644		1,710		1,763
Total liabilities		23,765		23,921		23,207		62,721		62,952		63,696		(6,945)		(6,884)		(4,978)		79,541		79,989		81,925

Redeemable noncontrolling interest		47		51		83														47		51		83

Stockholders’ Equity
Total Deere & Company stockholders’ equity		27,406		25,950		24,287		6,828		7,069		6,873		(6,828)		(7,069)		(6,873)		27,406		25,950		24,287	¹⁰
Noncontrolling interests		7		6		8														7		6		8
Financial Services’ equity		(6,828)		(7,069)		(6,873)								6,828		7,069		6,873							¹⁰
Adjusted total stockholders’ equity		20,585		18,887		17,422		6,828		7,069		6,873								27,413		25,956		24,295
Total Liabilities and Stockholders’ Equity	$	44,397	$	42,859	$	40,712	$	69,549	$	70,021	$	70,569	$	(6,945)	$	(6,884)	$	(4,978)	$	107,001	$	105,996	$	106,303

⁶	Elimination of receivables / payables between equipment operations and Financial Services.
⁷	Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
⁸	Reclassification of other receivables / payables.
⁹	Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
¹⁰	Elimination of Financial Services’ equity.

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Six Months Ended May 3, 2026 and April 27, 2025
(In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2026		2025		2026		2025		2026		2025		2026		2025
Cash Flows from Operating Activities
Net income	$	1,991	$	2,276	$	434	$	391					$	2,425	$	2,667
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		1		11		126		163						127		174
Depreciation and amortization		689		643		546		529	$	(51)	$	(68)		1,184		1,104	¹¹
Impairments and other adjustments								(32)								(32)
Share-based compensation expense										69		54		69		54	¹²
Distributed earnings of Financial Services		734		984						(734)		(984)					¹³
Provision (credit) for deferred income taxes		(19)		(153)		(49)		164						(68)		11
Changes in assets and liabilities:
Receivables related to sales		(225)		(185)						(859)		(884)		(1,084)		(1,069)	^{14, 16}
Inventories		(649)		(691)						(89)		(81)		(738)		(772)	¹⁵
Accounts payable and accrued expenses		(237)		(1,069)		14		102		(110)		69		(333)		(898)	¹⁶
Accrued income taxes payable/receivable		15		(77)		(20)		(70)						(5)		(147)
Retirement benefits		(285)		(753)		(5)		(41)						(290)		(794)
Other		(335)		59		140		224		(50)		(13)		(245)		270	^{11, 12, 15}
Net cash provided by operating activities		1,680		1,045		1,186		1,430		(1,824)		(1,907)		1,042		568

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)						14,641		14,684		(256)		(336)		14,385		14,348	¹⁴
Proceeds from maturities and sales of marketable securities		91		18		167		227						258		245
Proceeds from sales of equipment on operating leases						1,019		1,001						1,019		1,001
Cost of receivables acquired (excluding receivables related to sales)						(13,273)		(12,875)		116		131		(13,157)		(12,744)	¹⁴
Acquisition of business, net of cash acquired		(439)												(439)
Purchases of marketable securities		(42)		(20)		(242)		(327)						(284)		(347)
Purchases of property and equipment		(451)		(555)										(451)		(555)
Cost of equipment on operating leases acquired						(1,415)		(1,363)		120		109		(1,295)		(1,254)	¹⁵
Increase in trade and wholesale receivables						(1,110)		(1,019)		1,110		1,019					¹⁴
Collections of receivables from unconsolidated affiliates				183		152		51						152		234
Collateral on derivatives – net		2		3		(10)		24						(8)		27
Other		(54)		(72)		(33)		(104)						(87)		(176)
Net cash provided by (used for) investing activities		(893)		(443)		(104)		299		1,090		923		93		779

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		(4)		65		2,250		486						2,246		551
Change in intercompany receivables/payables		21		428		(21)		(428)
Proceeds from borrowings issued (original maturities greater than three months)		252		2,043		3,199		3,113						3,451		5,156
Payments of borrowings (original maturities greater than three months)		(181)		(766)		(5,754)		(4,071)						(5,935)		(4,837)
Repurchases of common stock		(500)		(838)										(500)		(838)
Dividends paid		(878)		(843)		(734)		(984)		734		984		(878)		(843)	¹³
Other		5		(4)		(16)		(6)						(11)		(10)
Net cash provided by (used for) financing activities		(1,285)		85		(1,076)		(1,890)		734		984		(1,627)		(821)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		79		22		15		(2)						94		20

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(419)		709		21		(163)						(398)		546
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		6,364		5,643		2,169		1,990						8,533		7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	5,945	$	6,352	$	2,190	$	1,827					$	8,135	$	8,179

¹¹	Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
¹²	Reclassification of share-based compensation expense.
¹³	Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.
¹⁴	Primarily reclassification of receivables related to the sale of equipment.
¹⁵	Reclassification of direct lease agreements with retail customers.
¹⁶	Reclassification of sales incentive accruals on receivables sold to Financial Services.

View original content to download multimedia:https://www.prnewswire.com/news-releases/deere-reports-second-quarter-net-income-of-1-773-billion-302778847.html

SOURCE Deere & Company

Deere Reports Second Quarter Net Income of $1.773 Billion

Deere Reports Second Quarter Net Income of $1.773 Billion

Ty J. Young Wealth Management Acquires McCarrell Insurance

CrossCountry Mortgage Welcomes Top-Producing Loan Officer Raena Pinchuk and Team to Expand Presence in North Idaho

New research shows how snacking on almonds improves diets

Aboard Completes Pre-Series A Funding Bringing Total Raise to $13 Million for Next-Gen Travel Trailer