Deere Q3 FY26 earnings
Revenue $12.6B, up 5% from a year ago. Net income $1.4B.
Deere's quarter split two ways: Construction & Forestry grew 18% from a year ago to 29% of revenue, while Production & Precision Agriculture, the largest at 32%, fell 6% to $4.0B. Net income was $1.4B, 11% of revenue, up 7%.
Volume fell everywhere; agriculture priced +1%, Construction cut -2%.
Volume fell in every Deere segment in FY25. Agriculture still priced at +1%; only Construction cut price, at -2%. The decomposition is the 10-K's own.
$18.50 per share in FY25, about half the $34.63 peak of FY23.
Deere earned $18.50 per diluted share in FY25, about half the $34.63 peak of FY23. Ten years earlier the figure was $4.81.
Where the revenue came from
| Segment | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Production & Precision Agriculture | $4.0B | -6% | |
| Construction & Forestry | $3.6B | +18% | |
| Small Agriculture & Turf | $3.4B | +12% | |
| Finance & interest income | $1.4B | -5% | |
| Other income | $256M | +9% |
The quarter, line by line
| Line | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Revenue | $12.6B | +5% | |
| Cost of revenue | $7.9B | 63.0% | +5% |
| Gross profit | $4.7B | 37.0% | +5% |
| Operating expenses | $2.8B | 22.1% | -2% |
| Operating income | $1.9B | 14.9% | +18% |
| Pretax income | $1.9B | 14.9% | +18% |
| Income tax | $529M | 4.2% | +56% |
| Net income | $1.4B | 10.9% | +8% |
Of the $1.4B, -$2M belongs to outside co-owners of Deere's subsidiaries (noncontrolling interests, in the filing's words). Net income attributable to Deere itself: $1.4B.
Effective tax rate: 28.1%. That is tax as a share of pretax income. The 4.2% in the column above is tax as a share of revenue, which is not a tax rate.
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Aug 2, 2026 | $12.6B | $1.4B | 10.9% |
| May 3, 2026 | $13.4B | $1.8B | 13.2% |
| Feb 1, 2026 | $9.6B | $655M | 6.8% |
| Nov 2, 2025 | $12.4B | $1.1B | 8.5% |
| Jul 27, 2025 | $12.0B | $1.3B | 10.6% |
| Apr 27, 2025 | $12.8B | $1.8B | 14.1% |
| Jan 26, 2025 | $8.5B | $867M | 10.2% |
| Oct 27, 2024 | $11.1B | $1.2B | 11.1% |