Outlook for small ag and construction and forestry improves as large ag remains subdued
Full-year 2026 earnings are projected to be between $4.00 billion and $4.75 billion
MOLINE, Ill., Nov. 26, 2025 /PRNewswire/ -- Deere & Company (NYSE:DE) reported net income of $1.065 billion for the fourth quarter ended November 2, 2025, or $3.93 per share, compared with net income of $1.245 billion, or $4.55 per share, for the quarter ended October 27, 2024. For fiscal year 2025, net income attributable to Deere & Company was $5.027 billion, or $18.50 per share, compared with $7.100 billion, or $25.62 per share, in fiscal 2024.
Worldwide net sales and revenues increased 11%, to $12.394 billion, for the fourth quarter of 2025 and decreased 12%, to $45.684 billion, for the full year. Net sales were $10.579 billion for the quarter and $38.917 billion for the year, compared with $9.275 billion and $44.759 billion in fiscal 2024, respectively.
"This past year brought its share of challenges and uncertainty, but thanks to the structural improvements we've made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle," said John May, chairman and CEO of John Deere. "Our continued commitment to delivering customer value and focusing on operational efficiency enabled us to remain resilient and demonstrate the strength of our business."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.00 billion to $4.75 billion.
"Looking ahead, we believe 2026 will mark the bottom of the large ag cycle," May stated. "While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture & turf and construction & forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover."
Deere & Company
Fourth Quarter
Full Year
$ in millions, except per share amounts
2025
2024
% Change
2025
2024
% Change
Net sales and revenues
$
12,394
$
11,143
11 %
$
45,684
$
51,716
-12 %
Net income
$
1,065
$
1,245
-14 %
$
5,027
$
7,100
-29 %
Fully diluted EPS
$
3.93
$
4.55
$
18.50
$
25.62
Results for the presented periods were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.
Production & Precision Agriculture
Fourth Quarter
$ in millions
2025
2024
% Change
Net sales
$
4,740
$
4,305
10 %
Operating profit
$
604
$
657
-8 %
Operating margin
12.7 %
15.3 %
Production & Precision Agriculture sales increased for the quarter due to higher shipment volumes and favorable price realization. Operating profit decreased primarily due to higher production costs, higher tariffs, and special items described in Note 2, partially offset by price realization and higher shipment volumes / sales mix.
Small Agriculture & Turf
Fourth Quarter
$ in millions
2025
2024
% Change
Net sales
$
2,457
$
2,306
7 %
Operating profit
$
25
$
234
-89 %
Operating margin
1.0 %
10.1 %
Small Agriculture & Turf sales increased for the quarter due to higher shipment volumes. Operating profit decreased due to higher tariffs, warranty expenses, and production costs.
Construction & Forestry
Fourth Quarter
$ in millions
2025
2024
% Change
Net sales
$
3,382
$
2,664
27 %
Operating profit
$
348
$
328
6 %
Operating margin
10.3 %
12.3 %
Construction & Forestry sales increased for the quarter due to higher shipment volumes. Operating profit increased primarily due to higher shipment volumes / sales mix, partially offset by increased production costs driven by higher tariffs and special items described in Note 2.
Financial Services
Fourth Quarter
$ in millions
2025
2024
% Change
Net income
$
293
$
173
69 %
Financial Services net income for the quarter was higher due to favorable financing spreads, special items described in Note 2, and a lower provision for credit losses.
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)
Flat
Asia
Down ~5%
Construction & Forestry
U.S. & Canada:
Construction Equipment
Flat to up 5%
Compact Construction Equipment
Flat to up 5%
Global Forestry
Flat
Global Roadbuilding
Flat
Deere Segment Outlook for Fiscal 2026
Currency
Price
$ in millions
Net Sales
Translation
Realization
Production & Precision Ag
Down 5 to 10%
+1.5 %
~ +1.5%
Small Ag & Turf
Up ~10%
+1.0 %
~ +2.0%
Construction & Forestry
Up ~10%
+1.0 %
~ +3.0%
Financial Services
Net Income
~ $830
FORWARD-LOOKING STATEMENTSCertain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to 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, governmental farm programs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession, and regional or global liquidity constraints
the uncertainty of government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, and retaliatory trade regulations
political, economic, and social instability in the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East
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 pricing, 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
changes in climate patterns, unfavorable weather events, and natural disasters
suppliers' and manufacturers' business practices and compliance with laws applicable to topics 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
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 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 ability to attract, develop, engage, and retain qualified employees
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, tariffs, product liability, 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 Reports 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
FOURTH QUARTER 2025 PRESS RELEASE
(In millions of dollars) Unaudited
Three Months Ended
Years Ended
November 2
October 27
%
November 2
October 27
%
2025
2024
Change
2025
2024
Change
Net sales and revenues:
Production & Precision Ag net sales
$
4,740
$
4,305
+10
$
17,311
$
20,834
-17
Small Ag & Turf net sales
2,457
2,306
+7
10,224
10,969
-7
Construction & Forestry net sales
3,382
2,664
+27
11,382
12,956
-12
Financial Services revenues
1,548
1,522
+2
5,821
5,782
+1
Other revenues
267
346
-23
946
1,175
-19
Total net sales and revenues
$
12,394
$
11,143
+11
$
45,684
$
51,716
-12
Operating profit: *
Production & Precision Ag
$
604
$
657
-8
$
2,671
$
4,514
-41
Small Ag & Turf
25
234
-89
1,207
1,627
-26
Construction & Forestry
348
328
+6
1,028
2,009
-49
Financial Services
374
231
+62
1,114
889
+25
Total operating profit
1,351
1,450
-7
6,020
9,039
-33
Reconciling items **
68
43
+58
266
155
+72
Income taxes
(354)
(248)
+43
(1,259)
(2,094)
-40
Net income attributable to Deere & Company
$
1,065
$
1,245
-14
$
5,027
$
7,100
-29
*
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 Months and Years Ended November 2, 2025 and October 27, 2024
(In millions of dollars and shares except per share amounts) Unaudited
Three Months Ended
Years Ended
2025
2024
2025
2024
Net Sales and Revenues
Net sales
$
10,579
$
9,275
$
38,917
$
44,759
Finance and interest income
1,515
1,551
5,748
5,759
Other income
300
317
1,019
1,198
Total
12,394
11,143
45,684
51,716
Costs and Expenses
Cost of sales
7,944
6,571
28,159
30,775
Research and development expenses
681
626
2,311
2,290
Selling, administrative and general expenses
1,276
1,232
4,663
4,840
Interest expense
762
870
3,170
3,348
Other operating expenses
307
326
1,124
1,257
Total
10,970
9,625
39,427
42,510
Income of Consolidated Group before Income Taxes
1,424
1,518
6,257
9,206
Provision for income taxes
354
248
1,259
2,094
Income of Consolidated Group
1,070
1,270
4,998
7,112
Equity in loss of unconsolidated affiliates
(10)
(28)
(24)
Net Income
1,060
1,242
4,998
7,088
Less: Net loss attributable to noncontrolling interests
(5)
(3)
(29)
(12)
Net Income Attributable to Deere & Company
$
1,065
$
1,245
$
5,027
$
7,100
Per Share Data
Basic
$
3.94
$
4.57
$
18.55
$
25.73
Diluted
3.93
4.55
18.50
25.62
Dividends declared
1.62
1.47
6.48
5.88
Dividends paid
1.62
1.47
6.33
5.76
Average Shares Outstanding
Basic
270.3
272.6
270.9
276.0
Diluted
271.1
273.6
271.7
277.1
See Condensed Notes to Consolidated Financial Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of November 2, 2025 and October 27, 2024
(In millions of dollars) Unaudited
2025
2024
Assets
Cash and cash equivalents
$
8,276
$
7,324
Marketable securities
1,411
1,154
Trade accounts and notes receivable, net
5,317
5,326
Financing receivables, net
44,575
44,309
Financing receivables securitized, net
6,831
8,723
Other receivables
2,403
2,545
Equipment on operating leases, net
7,600
7,451
Inventories
7,406
7,093
Property and equipment, net
8,079
7,580
Goodwill
4,188
3,959
Other intangible assets, net
892
999
Retirement benefits
3,273
2,921
Deferred income taxes
2,284
2,086
Other assets
3,461
2,906
Assets held for sale
2,944
Total Assets
$
105,996
$
107,320
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings
$
13,796
$
13,533
Short-term securitization borrowings
6,596
8,431
Accounts payable and accrued expenses
13,909
14,543
Deferred income taxes
434
478
Long-term borrowings
43,544
43,229
Retirement benefits and other liabilities
1,710
2,354
Liabilities held for sale
1,827
Total liabilities
79,989
84,395
Redeemable noncontrolling interest
51
82
Stockholders' Equity
Total Deere & Company stockholders' equity
25,950
22,836
Noncontrolling interests
6
7
Total stockholders' equity
25,956
22,843
Total Liabilities and Stockholders' Equity
$
105,996
$
107,320
See Condensed Notes to Consolidated Financial Statements.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Years Ended November 2, 2025 and October 27, 2024
(In millions of dollars) Unaudited
2025
2024
Cash Flows from Operating Activities
Net income
$
4,998
$
7,088
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
296
310
Depreciation and amortization
2,229
2,118
Impairments and other adjustments
41
125
Share-based compensation expense
151
208
Credit for deferred income taxes
(288)
(294)
Changes in assets and liabilities:
Receivables related to sales
1,084
421
Inventories
(275)
788
Accounts payable and accrued expenses
(251)
(1,040)
Accrued income taxes payable/receivable
(136)
(123)
Retirement benefits
(865)
(227)
Other
475
(143)
Net cash provided by operating activities
7,459
9,231
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)
26,480
25,162
Proceeds from maturities and sales of marketable securities
486
832
Proceeds from sales of equipment on operating leases
1,917
1,929
Cost of receivables acquired (excluding receivables related to sales)
(26,340)
(28,816)
Acquisitions of businesses, net of cash acquired
(101)
Purchases of marketable securities
(703)
(1,055)
Purchases of property and equipment
(1,360)
(1,640)
Cost of equipment on operating leases acquired
(2,868)
(3,162)
Collections of receivables from unconsolidated affiliates
507
Loans to unconsolidated affiliates
(109)
Collateral on derivatives, net
182
413
Other
(148)
(127)
Net cash used for investing activities
(2,057)
(6,464)
Cash Flows from Financing Activities
Net payments in short-term borrowings (original maturities three months or less)
(2,539)
(1,856)
Proceeds from borrowings issued (original maturities greater than three months)
13,161
18,096
Payments of borrowings (original maturities greater than three months)
(12,264)
(13,232)
Repurchases of common stock
(1,138)
(4,007)
Dividends paid
(1,720)
(1,605)
Other
(79)
(113)
Net cash used for financing activities
(4,579)
(2,717)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash
77
(37)
Net Increase in Cash, Cash Equivalents, and Restricted Cash
900
13
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year
