Deere & Co.

Q3 results: sales up, margins strong; operating model executing well - Net sales/revenues up 5% to $12.608B; equipment operations net sales up 6% to $10.999B. - Net income attributable to Deere: $1.379B ($5.10/share). - Equipment operations operating margin: 14.4% (company emphasized strong factory/warehouse execution, cost discipline, and favorable price realization plus progress on inventory health).

Segment performance: PPA down on volumes, Small Ag & Turf up on mix/pricing; C&F strong - Production & Precision Ag (PPA): net sales -6% to $3.998B (mainly lower shipment volumes; offset by ~+2.5 pts price realization and ~+1.5 pts currency). - Operating profit $527M, margin 13.2%; YOY profit down mainly from lower volumes + higher production costs. - Small Ag & Turf (SAT): net sales +12% to $3.383B (higher volumes + ~+1.5 pts price realization; currency ~-0.5 pt). - Operating profit $622M, margin 18.4% (improved mainly from higher volumes/mix and pricing, partly offset by higher production costs). - Construction & Forestry (C&F): net sales +18% to $3.618B; operating profit $436M, margin 12.1%. - Company cited +8 pts price realization (including lapping prior-year retail incentive impact) and currency ~+0.5 pt; offset by higher SA&G/R&D.

Fiscal 2026 outlook (key forecasts): ag soft, construction still growing - Ag & turf industry outlook (global) for FY26 - US/Canada large ag: -15% to -20% YoY (muted profitability, input cost uncertainty, crop demand uncertainty). - US/Canada small ag & turf: flat to +5%. - Europe: ~flat (softer arable profitability; dairy supportive). - South America: -15% to -20% (elevated production costs + higher interest rates). - Asia: ~flat (supported by stabilization after India improvement last quarter). - Company segment guidance updates for FY26 - PPA: net sales now ~down 10% (includes positive price realization and ~+2.5 pts favorable currency translation). - Operating margin narrowed to 11%–12%. - SAT: net sales expected ~+15% (includes ~+1.5 pts price realization and ~+0.5 pt favorable currency). - Operating margin increased to 14.5%–15.5%. - C&F (construction/forestry): net sales expected ~+20%; operating margin tightened to 10.5%–11.5%. - C&F industry outlook FY26: US/Canada earthmoving +5% to +10%; compact construction +5%; forestry ~-10%; global road building ~+10%.