Deere & Company delivered net income of $656 million, or $2.42 per share, for the quarter ended February 1, 2026, compared with $869 million, or $3.19 per share, in the prior year. Worldwide net sales and revenues rose 13% to $9.61 billion, driven by stronger order books across diverse customer segments.

Higher tariffs increased production costs sharply, causing operating profit in the Production & Precision Agriculture segment to plunge 59% to $139 million and its margin to fall to 4.4% from 11.0% a year earlier. Tariff pressures also weighed on margins in other equipment divisions despite positive currency translation effects.

Small Agriculture & Turf net sales climbed 24% to $2,168 million with operating profit up 58% to $196 million, while Construction & Forestry sales jumped 34% to $2,670 million and profit more than doubled to $137 million. Financial Services net income rose 6% to $244 million, aided by favorable financing spreads and lower credit loss provisions.

Deere increased its fiscal 2026 net income forecast to a range of $4.5 billion to $5.0 billion, reflecting confidence that the current cycle has bottomed. Sustained R&D investments and a robust product pipeline across markets are expected to support accelerated growth as demand recovers.