The quarter cleared a reasonable market hurdle. Diluted EPS reached $5.10 versus published expectations around $4.85, while equipment-operations sales were $10.999 billion versus roughly $10.8 billion consensus. That is a real beat, not merely growth against a depressed prior-year comparison.
| Metric | Q3 2026 | Q3 2025 | Change / expectation |
|---|---|---|---|
| Net sales and revenues | $12.608B | $12.018B | +5% (3Q 2026 Results) |
| Equipment-operations net sales | $10.999B | $10.357B | +6% (3Q 2026 Results) |
| Net income attributable to Deere | $1.379B | $1.289B | +7% (3Q 2026 Results) |
| Diluted EPS | $5.10 | $4.75 | +7%; versus ~$4.85 consensus |
| FY26 net income forecast | $4.75B-$5.0B | $4.5B-$5.0B prior | Floor raised (Deere & Company Outlook) |
| FY26 equipment-operations cash flow | $5.0B-$5.5B | $4.5B-$5.5B prior | Floor raised (Deere & Company Outlook) |
The earnings mix was better than the headline agricultural cycle suggests. Production & Precision Ag operating profit fell to $527 million from $580 million despite a 6% sales increase, but Small Ag & Turf profit rose to $622 million from $485 million and Construction & Forestry jumped to $436 million from $237 million. The diversification outside large farm equipment did much of the work (segment operating-profit comparisons).
Management raised the guidance floor, but did not raise the ceiling. FY26 net income guidance moved from $4.5-$5.0 billion to $4.75-$5.0 billion, and equipment-operations cash-flow guidance moved from $4.5-$5.5 billion to $5.0-$5.5 billion. That is an improvement in downside protection rather than a major acceleration in the earnings outlook (Deere & Company Outlook). The prior range was publicly established in the May 21, 2026 outlook.
Large-ag demand remains the key limitation. Deere still forecasts U.S./Canadian large agriculture and South American agriculture units down 15%-20% for FY26, while July retail sales showed Deere down more than the industry in smaller tractors, 4WD tractors, and combines. Dealer inventories also rose for 100-plus-horsepower tractors to 33% of trailing-twelve-month retail sales from 31% a year earlier (Ag and Turf Industry Outlook; July 2026 Retail Sales and Dealer Inventories).
Net read: a clear earnings beat with modestly better downside protection. The market already expected a difficult farm-equipment cycle and some contribution from smaller-agriculture and construction businesses; the surprise was the stronger profit delivery and higher guidance floors. Because the top of guidance stayed unchanged and large-ag weakness persists, this is best scored as a Beat rather than a wholesale outlook reset.
Read the original 8-K on SEC EDGAR ↗