# DEERE & CO (DE)

Informational only - not investment advice.

CIK: 0000315189
SIC: 3523 Farm Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3523 Farm Machinery & Equipment](/industry/3523/)
Latest 10-K filed: 2025-12-18
SEC page: https://www.sec.gov/edgar/browse/?CIK=315189
Filing source: https://www.sec.gov/Archives/edgar/data/315189/000110465925122321/de-20251102x10k.htm

## At a glance

FY2025 · period end 2025-11-02 · filed 2025-12-18 · accession 0001104659-25-122321 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000315189.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 45,684,000,000 USD | 2025 | verified |
| Net income | 5,027,000,000 USD | 2025 | verified |
| Assets | 105,996,000,000 USD | 2025 | verified |
| Free cash flow | 6,099,000,000 USD | 2025 | computed |
| Net margin | 11.00% | 2025 | computed |
| Revenue YoY | -11.66% | 2025 | computed |
| ROE | 19.37% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DE | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.0% | 7.7% | 66 | 110 |
| Operating margin | 17.5% | 13.1% | 74 | 104 |
| Revenue growth | -11.7% | 5.8% | 3 | 111 |
| FCF margin | 13.4% | 9.6% | 66 | 103 |
| ROE | 19.4% | 11.7% | 72 | 108 |
| ROA | 4.7% | 5.6% | 43 | 111 |
| Liabilities / equity | 3.08 | 1.10 | 88 | 108 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 45684000000 | USD | 2025 | 2025-12-18 |
| Net income | 5027000000 | USD | 2025 | 2025-12-18 |
| Assets | 105996000000 | USD | 2025 | 2025-12-18 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-12-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000315189.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 26,644,000,000 | 29,738,000,000 | 37,358,000,000 | 39,258,000,000 | 35,540,000,000 | 44,024,000,000 | 52,577,000,000 | 61,251,000,000 | 51,716,000,000 | 45,684,000,000 |
| Net income |  | 1,523,900,000 | 2,159,000,000 | 2,368,000,000 | 3,253,000,000 | 2,751,000,000 | 5,963,000,000 | 7,131,000,000 | 10,166,000,000 | 7,100,000,000 | 5,027,000,000 |
| Operating income | 3,140,000,000 | 2,609,000,000 | 3,574,000,000 | 4,476,000,000 | 4,415,000,000 | 4,305,000,000 | 8,012,000,000 | 9,508,000,000 | 12,958,000,000 | 9,039,000,000 |  |
| Diluted EPS |  | 4.81 | 6.68 | 7.24 | 10.15 | 8.69 | 18.99 | 23.28 | 34.63 | 25.62 | 18.50 |
| Operating cash flow |  | 3,769,700,000 | 2,196,000,000 | 1,822,000,000 | 3,412,000,000 | 7,483,000,000 | 7,726,000,000 | 4,699,000,000 | 8,589,000,000 | 9,231,000,000 | 7,459,000,000 |
| Capital expenditures |  | 644,400,000 | 595,000,000 | 896,000,000 | 1,120,000,000 | 820,000,000 | 848,000,000 | 1,134,000,000 | 1,498,000,000 | 1,640,000,000 | 1,360,000,000 |
| Dividends paid |  | 761,300,000 | 764,000,000 | 806,000,000 | 943,000,000 | 956,000,000 | 1,040,000,000 | 1,313,000,000 | 1,427,000,000 | 1,605,000,000 | 1,720,000,000 |
| Share buybacks |  | 205,400,000 | 6,000,000 | 958,000,000 | 1,253,000,000 | 750,000,000 | 2,538,000,000 | 3,597,000,000 | 7,216,000,000 | 4,007,000,000 | 1,138,000,000 |
| Assets |  | 57,918,000,000 | 65,786,000,000 | 70,108,000,000 | 73,011,000,000 | 75,091,000,000 | 84,114,000,000 | 90,030,000,000 | 104,087,000,000 | 107,320,000,000 | 105,996,000,000 |
| Liabilities |  | 51,373,700,000 | 56,211,800,000 | 58,803,000,000 | 61,580,000,000 | 62,147,000,000 | 65,680,000,000 | 69,673,000,000 | 82,201,000,000 | 84,395,000,000 | 79,989,000,000 |
| Stockholders' equity |  | 6,520,000,000 | 9,557,300,000 | 11,288,000,000 | 11,413,000,000 | 12,937,000,000 | 18,431,000,000 | 20,262,000,000 | 21,785,000,000 | 22,836,000,000 | 25,950,000,000 |
| Cash and cash equivalents |  | 4,335,800,000 | 9,334,900,000 | 3,904,000,000 | 3,857,000,000 | 7,066,000,000 | 8,017,000,000 | 4,774,000,000 | 7,458,000,000 | 7,324,000,000 | 8,276,000,000 |
| Free cash flow |  | 3,125,300,000 | 1,601,000,000 | 926,000,000 | 2,292,000,000 | 6,663,000,000 | 6,878,000,000 | 3,565,000,000 | 7,091,000,000 | 7,591,000,000 | 6,099,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 5.72% | 7.26% | 6.34% | 8.29% | 7.74% | 13.54% | 13.56% | 16.60% | 13.73% | 11.00% |
| Operating margin |  | 9.79% | 12.02% | 11.98% | 11.25% | 12.11% | 18.20% | 18.08% | 21.16% | 17.48% |  |
| Return on equity |  | 23.37% | 22.59% | 20.98% | 28.50% | 21.26% | 32.35% | 35.19% | 46.67% | 31.09% | 19.37% |
| Return on assets |  | 2.63% | 3.28% | 3.38% | 4.46% | 3.66% | 7.09% | 7.92% | 9.77% | 6.62% | 4.74% |
| Liabilities / equity |  | 7.88 | 5.88 | 5.21 | 5.40 | 4.80 | 3.56 | 3.44 | 3.77 | 3.70 | 3.08 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000315189.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-07-31 |  |  | 6.16 | reported discrete quarter |
| 2023-Q1 | 2023-01-29 |  |  | 6.55 | reported discrete quarter |
| 2023-Q2 | 2023-04-30 |  |  | 9.65 | reported discrete quarter |
| 2023-Q3 | 2023-07-30 | 15,801,000,000 | 2,978,000,000 | 10.20 | reported discrete quarter |
| 2023-Q4 | 2023-10-29 | 15,412,000,000 | 2,369,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-01-28 | 12,185,000,000 | 1,751,000,000 | 6.23 | reported discrete quarter |
| 2024-Q2 | 2024-04-28 | 15,235,000,000 | 2,370,000,000 | 8.53 | reported discrete quarter |
| 2024-Q3 | 2024-07-28 | 13,152,000,000 | 1,734,000,000 | 6.29 | reported discrete quarter |
| 2024-Q4 | 2024-10-27 | 11,144,000,000 | 1,245,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-01-26 | 8,508,000,000 | 869,000,000 | 3.19 | reported discrete quarter |
| 2025-Q2 | 2025-04-27 | 12,763,000,000 | 1,804,000,000 | 6.64 | reported discrete quarter |
| 2025-Q3 | 2025-07-27 | 12,018,000,000 | 1,289,000,000 | 4.75 | reported discrete quarter |
| 2025-Q4 | 2025-11-02 | 12,394,000,000 | 1,065,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-02-01 | 9,611,000,000 | 656,000,000 | 2.42 | reported discrete quarter |
| 2026-Q2 | 2026-05-03 | 13,369,000,000 | 1,773,000,000 | 6.55 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DE's latest 10-K: [/company/DE/business/](/company/DE/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DE's latest 10-K: [/company/DE/risk-factors/](/company/DE/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/315189/000110465926067311/de-20260503x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-28
Report date: 2026-05-03

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

All amounts are presented in millions of U.S. dollars unless otherwise specified.

Overview

Organization

Deere & Company is a global leader in the production of agricultural, turf, construction, and forestry equipment and solutions. John Deere Financial provides financing for John Deere equipment, parts, services, and other inputs customers need to run their operations. Our operations are managed through the Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services operating segments. References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT.

Trends and Economic Conditions

Industry Sales Outlook for Fiscal Year 2026 (in units)

Agriculture and Turf

Construction and Forestry

Company Trends

Our Leap Ambitions, a set of focused goals designed to guide the implementation of our Smart Industrial Operating Model, feature multi-year financial and operational goals, emphasizing the use of our differentiated equipment and service solutions, including automation, autonomy, digitalization, lifecycle solutions, and Solutions as a Service (SaaS).

Deeper integration of technology into equipment to enable customers to do more with less remains a persistent market trend. Customers seek to improve profitability, productivity, and sustainability by selecting our equipment and technology solutions. These technologies are incorporated into customer operations across the varied production systems that we serve. While we continue to benefit from the adoption of these technologies, revenue from SaaS products did not represent a significant percentage of our revenues in the periods presented.

Company Outlook for 2026

Large agriculture sales are expected to remain subdued in North America and to soften in South America resulting in decreased sales volume for PPA in 2026 compared to 2025. SAT and CF sales are expected to improve in 2026. Our net sales are expected to increase in 2026 compared to 2025, with the anticipated decline in PPA sales more than offset by improvements in CF and SAT.

Agriculture and Turf Industry Outlook for 2026

[[GREPCENT_TABLE]]
[["","\u25cf","Demand in the U.S. and Canada for large agriculture equipment is expected to decrease compared to 2025 levels driven by elevated farm input costs and ongoing global market uncertainty. These factors are expected to be partially offset by robust demand for commodities and tightening supply which are expected to support improvements in crop prices. In addition, government programs in the U.S. continue to support farmers\u2019 short-term liquidity, and recent biofuel policy changes may help provide future demand for U.S. farmers."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","We expect small agricultural and turf equipment sales to be flat to up slightly from 2025 levels in the U.S. and Canada. The dairy and livestock market continues to maintain strong margins, supporting ongoing product demand. A modest recovery is anticipated in the turf sector following several years of contraction."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","In Europe, the industry is forecasted to be flat to up slightly. While elevated interest rates continue to influence purchasing decisions, customer profitability and equipment replacement activity remain relatively stable. The"]]
[[/GREPCENT_TABLE]]

30

​

[[GREPCENT_TABLE]]
[["","","crop farming sector continues to experience subdued conditions; however, favorable dairy market margins are expected to continue to provide ongoing support to overall industry demand."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Demand in South America is expected to decrease. Although crop production and yields remain strong and crop prices have improved, high interest rates, elevated input costs, and a stronger Brazilian real are pressuring farm profitability and reducing near-term equipment demand."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Industry sales in Asia are forecasted to be roughly flat, mainly driven by demand in India."]]
[[/GREPCENT_TABLE]]

Construction and Forestry Industry Outlook for 2026

[[GREPCENT_TABLE]]
[["","\u25cf","Industry sales in the U.S. and Canada for construction and compact construction equipment are projected to be slightly higher compared to 2025. Favorable industry fundamentals, including strong customer backlogs supported by large projects, infrastructure investment, and data center construction activity, continue to offset softness in residential construction."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Global forestry markets are expected to decrease slightly due to continued pressure from weak residential construction demand and lower log and lumber prices."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Global roadbuilding markets are forecasted to be up compared to 2025 driven by increased road construction spending across multiple geographies."]]
[[/GREPCENT_TABLE]]

Financial Services Outlook for 2026

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Net Income","\u200b","Down","\u200b"],["(\u2013) Average portfolio","\u200b","Unfavorable","\u200b"],["(\u2013) Prior period special items","\u200b","Unfavorable","\u200b"],["+ Financing spreads","\u200b","Favorable","\u200b"],["+ Provision for credit losses","\u200b","Favorable","\u200b"]]
[[/GREPCENT_TABLE]]

Additional Trends

Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect farmers’ income and sentiment which may result in varying demand for our equipment. In 2026, we may experience the following effects due to unfavorable market conditions: lower sales volumes, higher sales incentives, and elevated receivable write-offs.

Global Trade Policies. In 2025, new tariffs were imposed in the U.S. for imports from a broad range of countries and on certain materials. Several countries also implemented retaliatory tariffs on imports from the U.S. and introduced additional trade barriers.

Incremental import tariffs adversely affected the cost of our products and components beginning in 2025 and continue to do so in 2026. The direct impact of these incremental tariffs incurred was $372 in the first six months of 2026, net of the tariff recovery described below, and approximately $95 in the first six months of 2025. These amounts exclude the impact of tariffs on our suppliers and market demand.

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). On April 20, 2026, the U.S. Customs and Border Protection (CBP) launched a system to process IEEPA tariff refund claims. Based on the eligibility parameters established by the CBP for the initial phase of the refund process, we prepared and filed a refund claim in the amount of $272, which has been accepted by the CBP. We recorded a recovery for this initial amount as we concluded the refund is probable and reasonably estimable. The recovery was allocated 20%, 30%, and 50% to PPA, SAT, and CF, respectively, decreasing cost of sales. Trade policies continue to evolve, causing uncertainty in the agriculture and construction industries. We are actively taking steps to mitigate potential impacts on our business, to the extent possible, including adjusting sourcing strategies, pursuing product exemptions, and identifying cost reduction opportunities.

Changes in the agricultural market business cycle and global trade policies are driven by factors outside of our control, and as a result, we cannot reasonably foresee when these conditions may subside.

Legal Proceeding – 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 joined the lawsuit. The lawsuit alleges monopolization and unfair competition in violation of the federal and state antitrust laws. Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as well as independent repair providers, access to our repair tools and any other repair resources available to authorized John Deere dealers. We are in discussions with the FTC and plaintiff states with respect to a potential resolution. At this stage, we are unable to estimate the potential impact on our business.

31

​

Other Items of Concern and Uncertainties – Other items that could impact our results are:

[[GREPCENT_TABLE]]
[["","\u25cf","slower economic growth and inflation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","global and regional political conditions"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","shifts in energy, including positions with respect to biofuels, positions on government subsidies of farming, and changes in energy prices"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","input costs, including the availability and price of fertilizers as a result of the conflict in the Middle East"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","capital market disruptions"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","foreign currency and capital control policies"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","right to repair and agriculture data privacy regulations and legislation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","weather conditions"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","marketplace pace of adoption and monetization of technologies we have invested in"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to strengthen our digital capabilities, artificial intelligence, automation, and autonomy"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","changes in demand and pricing for new and used equipment"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","delays or disruptions in our supply chain"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","significant fluctuations in foreign currency exchange rates"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","volatility in the prices of many commodities"]]
[[/GREPCENT_TABLE]]

Consolidated Results – 2026 Compared with 2025

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three Months Ended","\u200b","Six Months Ended","\u200b"],["Deere & Company","\u200b","May 3","\u200b","April 27","\u200b","%","\u200b","May 3","\u200b","April 27","\u200b","%","\u200b"],["(In millions of dollars, except per share amounts)","\u200b","2026","\u200b","2025","\u200b","Change","\u200b","2026","\u200b","2025","\u200b","Change","\u200b"],["Net sales and revenues","\u200b","$","13,369","\u200b","$","12,763","\u200b","+5","\u200b","$","22,981","\u200b","$","21,272","\u200b","+8","\u200b"],["Net income attributable to Deere & Company","\u200b","\u200b","1,773","\u200b","\u200b","1,804","\u200b","-2","\u200b","\u200b","2,429","\u200b","\u200b","2,673","\u200b","-9","\u200b"],["Diluted earnings per share","\u200b","\u200b","6.55","\u200b","\u200b","6.64","\u200b","\u200b","\u200b","\u200b","8.97","\u200b","\u200b","9.82","\u200b","\u200b","\u200b"]]
[[/GREPCENT_TABLE]]

​

Net sales and revenues increased 5% and 8% for the quarter and year-to-date periods, respectively, primarily due

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/315189/000110465925122321/de-20251102x10k.htm
Complete FY 2025 MD&A: /company/DE/mda/fy2025/

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2025-12-18
Report date: 2025-11-02

MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to promote understanding of our financial condition and results of operations. The MD&A is provided as a supplement to, and should be read in conjunction with, the consolidated financial statements and the accompanying Notes to Consolidated Financial Statements. All amounts are presented in millions of U.S. dollars, unless otherwise specified. For comparison of 2024 to 2023 results, refer to the “Management’s Discussion and Analysis” section of our 2024 Form 10-K, which is hereby incorporated by reference.

[[GREPCENT_TABLE]]
[["\u200b","\u200b"],["OVERVIEW","\u200b"]]
[[/GREPCENT_TABLE]]

Deere & Company is a global leader in the production of agricultural, turf, construction, and forestry equipment and solutions. John Deere Financial provides financing for John Deere equipment, parts, services, and other inputs customers need to run their operations. Our operations are managed through the Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services (FS) operating segments. References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT.

Net Sales and Revenues by Segment in 2025

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b"],["TRENDS & ECONOMIC CONDITIONS","\u200b"]]
[[/GREPCENT_TABLE]]

Industry Sales Outlook for Fiscal 2026

Agriculture and Turf

​

Construction and Forestry

Company Trends

In 2022, we introduced our Leap Ambitions, a set of focused goals designed to guide the implementation of our Smart Industrial Operating Model. These Ambitions are built upon a foundation of product quality and manufacturing excellence, supported by a best-in-class dealer channel, and enabled by employees dedicated to solving some of the world’s most important problems. To build on our accomplishments and lay the foundation for sustained growth as we move toward 2030, in December 2025 we refined our Ambitions. Our refined Ambitions feature multi-year financial and operational goals, emphasizing the use of our differentiated equipment and service solutions, including automation, autonomy, digitalization, lifecycle solutions, and Solutions as a Service (SaaS).

Deeper integration of technology into equipment to enable customers to do more with less remains a persistent market trend. Customers seek to improve profitability, productivity, and sustainability by selecting our equipment and technology solutions. These technologies are incorporated into customer operations across the varied production systems in which we serve. While we continue to benefit from the adoption of these technologies, revenue from SaaS products did not represent a significant percentage of our revenues in 2025.

32

Table of Contents

​

Company Outlook for 2026

[[GREPCENT_TABLE]]
[["","\u25cf","Large agriculture sales in North America are expected to remain subdued."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Small agriculture & turf and construction & forestry sales are expected to improve in 2026."]]
[[/GREPCENT_TABLE]]

Agriculture and Turf Outlook for 2026

[[GREPCENT_TABLE]]
[["","\u25cf","Demand in the U.S. and Canada for large agriculture equipment is expected to decrease further amidst challenging farm fundamentals for row crop farmers, which pressures short-term liquidity. Although the used equipment market is improving, it continues to constrain investments in new machines. These factors are partially offset by strong crop yields and consumption, recent U.S. trade agreements, growing demand for biofuels, and supportive government subsidies."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","We expect small agricultural and turf equipment sales to be flat to up slightly from 2025 levels in the U.S. and Canada. The dairy and livestock segment continues to generate profits driven by solid beef prices. A modest recovery is anticipated in the turf sector following an inflection in the housing market and growth in the overall economy."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","In Europe, the industry is forecasted to be flat to up slightly supported by strong dairy margins, a stabilizing interest rate environment, and improving crop yields."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Demand in South America is expected to be flat. In Brazil, while soybean and corn acreage is expected to grow, demand is projected to be tempered by high interest rates, strong global crop yields weighing on prices, and uncertainty over global trade policies. In Argentina, equipment demand is anticipated to moderate after robust growth in 2025."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Industry sales in Asia are forecasted to be down slightly."]]
[[/GREPCENT_TABLE]]

Construction and Forestry Outlook for 2026

[[GREPCENT_TABLE]]
[["","\u25cf","Industry sales in the U.S. and Canada for earthmoving and compact construction equipment are projected to remain flat to slightly higher, supported by modest growth in construction markets. Record employment levels, strong construction backlogs, and U.S. government infrastructure spending continue to provide a solid foundation for the industry. Moreover, declining interest rates, increased investment in rental fleets, and surging data center construction starts are adding further momentum. These positive drivers are expected to be partially tempered by restrained investments in the private commercial sector."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Global forestry markets are expected to be flat."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Global roadbuilding markets are forecasted to remain flat at strong levels."]]
[[/GREPCENT_TABLE]]

Financial Services Outlook for 2026

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Net Income","\u200b","Down","\u200b"],["(-) Average portfolio","\u200b","Unfavorable","\u200b"],["(-) Prior period special items","\u200b","Unfavorable","\u200b"],["+ Financing spreads","\u200b","Favorable","\u200b"]]
[[/GREPCENT_TABLE]]

​

Additional Trends

Agricultural Market Business Cycle – The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect farmers’ income and sentiment which may result in varying demand for our equipment. In 2025, we experienced the following effects due to unfavorable market conditions: lower sales volumes, greater reliance on sales incentives, and elevated receivable write-offs.

Global Trade Policies – During 2025, new tariffs were imposed in the U.S. for imports from a broad range of countries and on certain materials. Several countries also implemented or proposed retaliatory tariffs on imports from the U.S. and introduced additional trade barriers. Trade policies impact us in various ways. We are a net exporter of agriculture and turf equipment from the U.S. Nearly 80% of our domestic sales are assembled in the U.S., with the remaining products imported primarily from Europe, Mexico, India, and Japan. During 2025, incremental import tariffs adversely affected the cost of our products and components and may continue to do so in 2026. In addition, retaliatory tariffs by regions outside the U.S., currently in effect or adopted in the future, may impact the prices and profitability of our exported products. In 2025, the direct impact of incremental tariffs incurred by us was approximately $600, excluding the impact of tariffs on our suppliers and market demand. Trade policies are evolving, causing uncertainty in the agriculture and construction industries. We are actively taking steps to mitigate potential impacts on our business, to the extent possible.

On November 5, 2025, the United States Supreme Court heard oral arguments on tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The court may provide tariff relief and the potential recovery of amounts previously paid. We are monitoring developments in this case and its impact on our future financial statements and business.

Changes in the agricultural market business cycle and global trade policies are driven by factors outside of our control, and as a result we cannot reasonably foresee when these conditions will fully subside.

Legal Proceeding – 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 joined the lawsuit. The lawsuit alleges monopolization and unfair competition in violation of the federal and state antitrust laws. Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as

33

Table of Contents

​

well as independent repair providers, access to our repair tools and any other repair resources available to authorized John Deere dealers. We are in preliminary discussions with the FTC with respect to a potential resolution. At this stage, we are unable to estimate the potential impact on our business.

Other Items of Concern and Uncertainties – Other items that could impact our results are:

[[GREPCENT_TABLE]]
[["","\u25cf","global and regional political conditions, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","shifts in energy, including positions with respect to biofuels, economic, and positions on government subsidies of farming"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","capital market disruptions"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","foreign currency and capital control policies"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","right to repair regulations and legislation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","weather conditions"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","marketplace pace of adoption and monetization of technologies we have invested in"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to strengthen our digital capabilities, artificial intelligence, automation, and autonomy"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","changes in demand and pricing for new and used equipment"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","delays or disruptions in our supply chain"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","significant fluctuations in foreign currency exchange rates"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","volatility in the prices of many commodities"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","slower economic growth"]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b"],["CONSOLIDATED RESULTS","2025 compared to 2024"]]
[[/GREPCENT_TABLE]]

Highlights

[[GREPCENT_TABLE]]
[["","\u25cf","Net income declined in 2025 compared to 2024, driven by declining market conditions."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","We continue to focus on structural profitability and strategically investing in solutions that deliver value to our customers."]]
[[/GREPCENT_TABLE]]

Net Sales and Revenues

Net Sales (Equipment Operations)

[[GREPCENT_TABLE]]
[["","\u25cf","Net sales decreased in 2025 primarily due to lower sales volumes driven by declining market conditions (see Business Segment Results)."]]
[[/GREPCENT_TABLE]]

Net Income (Attributable to Deere & Company)

Diluted Earnings Per Share (EPS) ($ per share)

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/DE/mda/fy2025/
All MD&A years: /company/DE/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/DE/mda/fy2024/): filed 2024-12-12; accession 0001558370-24-016169 (https://www.sec.gov/Archives/edgar/data/315189/000155837024016169/de-20241027x10k.htm)
- [FY 2023 MD&A](/company/DE/mda/fy2023/): filed 2023-12-15; accession 0001558370-23-019812 (https://www.sec.gov/Archives/edgar/data/315189/000155837023019812/de-20231029x10k.htm)
- [FY 2022 MD&A](/company/DE/mda/fy2022/): filed 2022-12-15; accession 0001558370-22-018703 (https://www.sec.gov/Archives/edgar/data/315189/000155837022018703/de-20221030x10k.htm)
- [FY 2021 MD&A](/company/DE/mda/fy2021/): filed 2021-12-16; accession 0001558370-21-016864 (https://www.sec.gov/Archives/edgar/data/315189/000155837021016864/de-20211031x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3523 Farm Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DE.md · JSON record: /company/DE.json · verified financials: /company/DE/financials.json / /company/DE/financials.csv · machine TOC for the whole site: /llms.txt