One of the world's largest makers of farm and construction equipment, this company builds John Deere tractors, combines, and precision-agriculture technology, along with construction and roadbuilding machinery like Wirtgen. It began when Vermont-born blacksmith John Deere forged a self-cleaning steel plow from a broken sawmill blade in 1837, solving the problem of sticky prairie soil. Its leaping-deer logo, used since 1876, is a visual pun on the founder's name.
Q3 FY2026 net income rose 7% to $1.38B as Construction & Forestry and Small Ag & Turf offset a 9% drop in Production & Precision Ag operating profit.
The FTC repair lawsuit is settled. rose 4.9% to $12.6B and rose 7% to $1.38B, as and Small Ag & Turf gains outweighed a 9% drop in Production & Precision Ag . The company's largest is still shrinking, but the legal overhang is gone.
Key takeaways
The FTC and five state attorneys general settled the antitrust repair lawsuit on July 8, 2026, with Deere agreeing to provide repair resources to farmers and independent repair providers on fair and reasonable terms and to submit to FTC oversight.
fell 6% in Q3 and dropped 9% on lower shipment volumes in Brazil, Europe, the U.S., and Canada plus higher material costs.
rose 12% and net sales rose 18%, with both segments reporting higher on stronger volumes and price realization.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 5% to $12.6B, but nine-month net income fell 4% to $3.8B on PPA weakness.
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Consolidated and revenues rose 5% in Q3 to $12,608 million and 7% for the first nine months to $35,589 million, driven by higher volumes, favorable foreign currency translation, and .
Incremental import tariffs cost $502 million in the first nine months of 2026, net of $382 million in recorded after a February 2026 Supreme Court decision invalidated certain tariffs.
rose 7% on favorable financing spreads despite a 3% decline from a lower average portfolio.
was $2,208 million in Q3, down 23.8% , while cash and equivalents ended at $8,928 million.
What changed
The FTC and state antitrust repair lawsuit that earlier filings flagged as unresolved was settled on July 8, 2026, removing the legal overhang that had persisted since January 2025.
Production & Precision Ag fell 9% in Q3, a smaller decline than the 39% drop in Q2 and the 59% drop in Q1, suggesting the 's deterioration is moderating.
rose again in Q3 after the 48% Q2 increase, confirming the U.S. demand strength flagged as a watch item in Q2.
turned positive at $2,208 million in Q3 after Q1's negative $890 million, though it remains below the $3,995 million reported in Q3 FY2025.
What to watch
Q4 Production & Precision Ag to see if the 9% Q3 decline continues to narrow or widens again as material costs and shipment volumes develop.
Full-year 2026 equipment operations against the company's forecast of flat versus 2025.
next quarter to confirm U.S. demand holds after consecutive quarterly increases.
credit loss provisions as agricultural delinquencies remain elevated.
Q3 attributable to Deere & Company increased 7% to $1,379 million, while nine-month net income decreased 4% to $3,808 million, partly due to a $163 million favorable special tax item in the prior-year period.
fell 6% in Q3 and 7% year-to-date, with down 9% and 34%, respectively, on lower shipment volumes in Brazil, Europe, the U.S., and Canada and higher material costs.
rose 12% in Q3 and 16% year-to-date, and net sales rose 18% and 26%, respectively, with both segments reporting higher on stronger volumes and .
Incremental import tariffs cost $502 million in the first nine months of 2026, net of $382 million in tariff recoveries recorded after a February 2026 Supreme Court decision invalidated certain tariffs.
rose 7% in Q3 and 9% year-to-date on favorable , despite a 3% decline from a lower average portfolio.
Cash, cash equivalents, and restricted cash increased $617 million in the first nine months of 2026, with $2,013 million returned to shareholders and 2026 equipment operations forecast to remain flat versus 2025.
On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of Illinois and Minnesota, filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division. The Attorneys General of the…
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On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of Illinois and Minnesota, filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division. The Attorneys General of the States of Arizona, Michigan, and Wisconsin then joined the lawsuit. On July 8, 2026, we entered into a settlement with the FTC and plaintiff states to resolve all claims contained in the lawsuit. As part of that settlement, we have agreed, among other items, to provide certain repair resources to farmers and independent repair providers on “fair and reasonable terms” (as defined by the settlement). We have also agreed to provide regular reporting to the FTC and submit to the FTC’s oversight of our compliance with the settlement.
In addition to the litigation described above, we are also involved in other legal actions. The most prevalent legal claims relate to product liability (including asbestos-related liability), employment, patent, trademark, and antitrust matters. Currently, we believe the reasonably possible range of losses for unresolved legal actions would not have a material effect on our financial statements; however, the outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse decisions in one or more of these proceedings, claims, or investigations could require us to pay substantial damages or fines, undertake service actions, initiate recall campaigns, or take other costly measures. It is therefore possible that legal judgments or investigations could give rise to expenses that are not covered or not fully covered by our insurance programs and could affect our business, financial condition, or results.
See our most recently filed Annual Report on Form 10-K (Part I, Item 1A). The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks we face. Additional risks and uncertainties may also materially affect our…
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See our most recently filed Annual Report on Form 10-K (Part I, Item 1A). The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks we face. Additional risks and uncertainties may also materially affect our business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.
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