Deere Reports First Quarter Net Income of $656 Million

• First quarter shipments ahead of plan as order books strengthen
• Diverse customer segments and geographies enable resilience and growth
• Net income guidance range increased to $4.5 billion - $5.0 billion

MOLINE, Ill., Feb. 19, 2026 /CNW/ -- Deere & Company (NYSE: DE) reported net income of $656 million for the first quarter ended February 1, 2026, or $2.42 per share, compared with net income of $869 million, or $3.19 per share, for the quarter ended January 26, 2025. 

Worldwide net sales and revenues increased 13 percent, to $9,611 million, in the most recent quarter. Net sales were $8,001 million for the quarter, compared with $6,809 million in the same quarter of 2025.

Production & Precision Agriculture Operating Profit First Quarter 2026 Compared to First Quarter 2025 $ in millions

Small Agriculture & Turf Operating Profit First Quarter 2026 Compared to First Quarter 2025

Construction & Forestry Operating Profit First Quarter 2026 Compared to First Quarter 2025 $ in millions

"While the global large agriculture industry continues to experience challenges, we're encouraged by the ongoing recovery in demand within both the construction and small agriculture segments," said John May, chairman and CEO of John Deere. "These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.5 billion to $5.0 billion.

"Our sustained investment in research and development throughout the cycle is yielding measurable results as we move toward launching a wide range of innovative products and solutions across all business segments," stated May. "These advancements underscore the value of maintaining a robust portfolio that spans broad markets and regions worldwide, which should position us for success as we transition out of the current cycle."

Deere & Company		First Quarter
$ in millions, except per share amounts		2026			2025			% Change
Net sales and revenues		$	9,611		$	8,508		13 %
Net income		$	656		$	869		-25 %
Fully diluted EPS		$	2.42		$	3.19

Results for the prior period were affected by special items. See Note 1 to the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" category below.

Production & Precision Agriculture		First Quarter
$ in millions		2026			2025			% Change
Net sales		$	3,163		$	3,067		3 %
Operating profit		$	139		$	338		-59 %
Operating margin			4.4 %			11.0 %

Production & Precision Agriculture sales increased for the quarter as a result of the positive effects of foreign currency translation. Operating profit decreased primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.

Small Agriculture & Turf		First Quarter
$ in millions		2026			2025			% Change
Net sales		$	2,168		$	1,748		24 %
Operating profit		$	196		$	124		58 %
Operating margin			9.0 %			7.1 %

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and price realization, partially offset by higher tariffs.

Construction & Forestry		First Quarter
$ in millions		2026			2025			% Change
Net sales		$	2,670		$	1,994		34 %
Operating profit		$	137		$	65		111 %
Operating margin			5.1 %			3.3 %

Construction & Forestry sales increased for the quarter as a result of higher shipment volumes and the positive effects of foreign currency translation. Operating profit increased primarily due to higher shipment volumes / sales mix and production efficiencies, partially offset by higher tariffs.

Financial Services		First Quarter
$ in millions		2026			2025			% Change
Net income		$	244		$	230		6 %

Financial Services net income increased primarily due to favorable financing spreads and a lower provision for credit losses, partially offset by a favorable special item recorded in the prior period described in Note 1 to the financial statements.

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)						Down ~5%
Asia						Flat to down 5%
Construction & Forestry
U.S. & Canada:
Construction Equipment						Up ~5%
Compact Construction Equipment						Up ~5%
Global Forestry						Flat
Global Roadbuilding						Up ~5%

Deere Segment Outlook for Fiscal 2026
				Currency		Price
$ in millions		Net Sales		Translation		Realization
Production & Precision Ag		Down 5 to 10%		+3.0 %		~ +1.5%
Small Ag & Turf		Up ~15%		+2.0 %		~ +2.0%
Construction & Forestry		Up ~15%		+2.0 %		~ +2.5%
Financial Services		Net Income		~ $840

FORWARD-LOOKING STATEMENTS

Certain 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 Interim 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, government 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
• 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 expenses, 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
• the ability to attract, develop, engage, and retain qualified employees
• 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 refined 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 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, product liability, tariffs, 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). 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 FIRST QUARTER 2026 PRESS RELEASE (In millions of dollars) Unaudited
		Three Months Ended
		February 1			January 26			%
		2026			2025			Change
Net sales and revenues:
Production & Precision Ag net sales		$	3,163		$	3,067		+3
Small Ag & Turf net sales			2,168			1,748		+24
Construction & Forestry net sales			2,670			1,994		+34
Financial Services revenues			1,384			1,470		-6
Other revenues			226			229		-1
Total net sales and revenues		$	9,611		$	8,508		+13
Operating profit: *
Production & Precision Ag		$	139		$	338		-59
Small Ag & Turf			196			124		+58
Construction & Forestry			137			65		+111
Financial Services			301			266		+13
Total operating profit			773			793		-3
Reconciling items **			79			103		-23
Income taxes			(196)			(27)		+626
Net income attributable to Deere & Company		$	656		$	869		-25

*	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 Ended February 1, 2026 and January 26, 2025 (In millions of dollars and shares except per share amounts) Unaudited
		2026			2025
Net Sales and Revenues
Net sales		$	8,001		$	6,809
Finance and interest income			1,343			1,453
Other income			267			246
Total			9,611			8,508
Costs and Expenses
Cost of sales			6,280			5,037
Research and development expenses			554			526
Selling, administrative and general expenses			972			972
Interest expense			719			829
Other operating expenses			250			249
Total			8,775			7,613
Income of Consolidated Group before Income Taxes			836			895
Provision for income taxes			196			27
Income of Consolidated Group			640			868
Equity in income (loss) of unconsolidated affiliates			15			(1)
Net Income			655			867
Less: Net loss attributable to noncontrolling interests			(1)			(2)
Net Income Attributable to Deere & Company		$	656		$	869
Per Share Data
Basic		$	2.43		$	3.20
Diluted			2.42			3.19
Dividends declared			1.62			1.62
Dividends paid			1.62			1.47
Average Shares Outstanding
Basic			270.3			271.6
Diluted			270.9			272.3

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
		February 1			November 2			January 26
		2026			2025			2025
Assets
Cash and cash equivalents		$	6,798		$	8,276		$	6,601
Marketable securities			1,398			1,411			1,214
Trade accounts and notes receivable – net			5,993			5,317			4,931
Financing receivables – net			42,113			44,575			41,396
Financing receivables securitized – net			6,479			6,831			8,257
Other receivables			2,411			2,403			2,979
Equipment on operating leases – net			7,512			7,600			7,157
Inventories			8,286			7,406			7,744
Property and equipment – net			8,084			8,079			7,425
Goodwill			4,280			4,188			3,872
Other intangible assets – net			880			892			937
Retirement benefits			3,378			3,273			3,018
Deferred income taxes			2,268			2,284			1,852
Other assets			3,556			3,461			2,807
Assets held for sale									2,929
Total Assets		$	103,436		$	105,996		$	103,119
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings		$	14,392		$	13,796		$	12,811
Short-term securitization borrowings			6,283			6,596			8,014
Accounts payable and accrued expenses			12,533			13,909			12,162
Deferred income taxes			434			434			448
Long-term borrowings			41,804			43,544			43,556
Retirement benefits and other liabilities			1,633			1,710			1,734
Liabilities held for sale									1,830
Total liabilities			77,079			79,989			80,555
Redeemable noncontrolling interest			50			51			78
Stockholders' Equity
Total Deere & Company stockholders' equity			26,300			25,950			22,479
Noncontrolling interests			7			6			7
Total stockholders' equity			26,307			25,956			22,486
Total Liabilities and Stockholders' Equity		$	103,436		$	105,996		$	103,119

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Three Months Ended February 1, 2026 and January 26, 2025 (In millions of dollars) Unaudited
		2026			2025
Cash Flows from Operating Activities
Net income		$	655		$	867
Adjustments to reconcile net income to net cash used for operating activities:
Provision for credit losses			36			69
Depreciation and amortization			590			549
Impairments and other adjustments						(32)
Share-based compensation expense			41			28
Provision for deferred income taxes			18			208
Changes in assets and liabilities:
Receivables related to sales			350			1,063
Inventories			(746)			(795)
Accounts payable and accrued expenses			(1,486)			(1,845)
Accrued income taxes payable/receivable			(88)			(540)
Retirement benefits			(194)			(688)
Other			(66)			(16)
Net cash used for operating activities			(890)			(1,132)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)			8,098			8,137
Proceeds from maturities and sales of marketable securities			144			61
Proceeds from sales of equipment on operating leases			377			433
Cost of receivables acquired (excluding receivables related to sales)			(6,023)			(6,045)
Purchases of marketable securities			(129)			(141)
Purchases of property and equipment			(256)			(352)
Cost of equipment on operating leases acquired			(432)			(439)
Collections of receivables from unconsolidated affiliates			105
Collateral on derivatives – net			(11)			(191)
Other			(51)			(47)
Net cash provided by investing activities			1,822			1,416
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)			848			(1,484)
Proceeds from borrowings issued (original maturities greater than three months)			780			3,168
Payments of borrowings (original maturities greater than three months)			(3,360)			(1,753)
Repurchases of common stock			(302)			(441)
Dividends paid			(441)			(403)
Other			(15)			(10)
Net cash used for financing activities			(2,490)			(923)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			98			(87)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash			(1,460)			(726)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			8,533			7,633
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	7,073		$	6,907

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited

(1)     Special Items

Discrete Tax Items

In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market.

The BJD business was reclassified as held for sale in 2024. In January 2025, the valuation allowance on assets held for sale decreased, resulting in a pretax and after-tax gain (reversal of previous losses) of $32 million recorded in "Selling, administrative and general expenses" in the three months ended January 26, 2025. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows.

The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income (loss) of unconsolidated affiliates" within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

(2)     The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company's Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.

DEERE & COMPANY (3) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended February 1, 2026 and January 26, 2025 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2026			2025			2026			2025			2026			2025			2026			2025
Net Sales and Revenues
Net sales		$	8,001		$	6,809														$	8,001		$	6,809
Finance and interest income			120			110		$	1,351		$	1,455		$	(128)		$	(112)			1,343			1,453	^1
Other income			213			202			137			118			(83)			(74)			267			246	^2, 3, 4
Total			8,334			7,121			1,488			1,573			(211)			(186)			9,611			8,508
Costs and Expenses
Cost of sales			6,291			5,045									(11)			(8)			6,280			5,037	^4
Research and development expenses			554			526															554			526
Selling, administrative and general expenses			806			800			168			174			(2)			(2)			972			972	^4
Interest expense			93			84			664			766			(38)			(21)			719			829	^1
Interest compensation to Financial Services			90			91									(90)			(91)							^1
Other operating expenses			(46)			(51)			366			364			(70)			(64)			250			249	^3, 4, 5
Total			7,788			6,495			1,198			1,304			(211)			(186)			8,775			7,613
Income before Income Taxes			546			626			290			269									836			895
Provision (credit) for income taxes			134			(13)			62			40									196			27
Income after Income Taxes			412			639			228			229									640			868
Equity in income (loss) of      unconsolidated affiliates			(1)			(2)			16			1									15			(1)
Net Income			411			637			244			230									655			867
Less: Net loss attributable to      noncontrolling interests			(1)			(2)															(1)			(2)
Net Income Attributable to Deere & Company		$	412		$	639		$	244		$	230								$	656		$	869

¹ Elimination of intercompany interest income and expense.

² Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.

³ Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.

⁴ Elimination of intercompany service revenues and fees.

⁵ Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited
		EQUIPMENT									FINANCIAL
		OPERATIONS									SERVICES									ELIMINATIONS									CONSOLIDATED
		Feb 1			Nov 2			Jan 26			Feb 1			Nov 2			Jan 26			Feb 1			Nov 2			Jan 26			Feb 1			Nov 2			Jan 26
		2026			2025			2025			2026			2025			2025			2026			2025			2025			2026			2025			2025
Assets
Cash and cash equivalents		$	4,769		$	6,340		$	4,840		$	2,029		$	1,936		$	1,761											$	6,798		$	8,276		$	6,601
Marketable securities			146			217			114			1,252			1,194			1,100												1,398			1,411			1,214
Receivables from Financial      Services			4,132			4,649			1,826											$	(4,132)		$	(4,649)		$	(1,826)										^6
Trade accounts and notes      receivable – net			1,284			1,316			1,053			6,609			5,900			5,812			(1,900)			(1,899)			(1,934)			5,993			5,317			4,931	^7
Financing receivables – net			105			88			78			42,008			44,487			41,318												42,113			44,575			41,396
Financing receivables      securitized – net						1			2			6,479			6,830			8,255												6,479			6,831			8,257
Other receivables			1,841			1,809			2,367			621			658			654			(51)			(64)			(42)			2,411			2,403			2,979	^8
Equipment on operating      leases – net												7,512			7,600			7,157												7,512			7,600			7,157
Inventories			8,286			7,406			7,744																					8,286			7,406			7,744
Property and equipment – net			8,053			8,047			7,392			31			32			33												8,084			8,079			7,425
Goodwill			4,280			4,188			3,872																					4,280			4,188			3,872
Other intangible assets – net			880			892			937																					880			892			937
Retirement benefits			3,282			3,181			2,933			98			94			86			(2)			(2)			(1)			3,378			3,273			3,018
Deferred income taxes			2,476			2,507			2,247			45			46			42			(253)			(269)			(437)			2,268			2,284			1,852	^9
Other assets			2,371			2,218			2,295			1,220			1,244			539			(35)			(1)			(27)			3,556			3,461			2,807
Assets held for sale																		2,929																		2,929
Total Assets		$	41,905		$	42,859		$	37,700		$	67,904		$	70,021		$	69,686		$	(6,373)		$	(6,884)		$	(4,267)		$	103,436		$	105,996		$	103,119
Liabilities and      Stockholders' Equity
Liabilities
Short-term borrowings		$	366		$	414		$	1,101		$	14,026		$	13,382		$	11,710											$	14,392		$	13,796		$	12,811
Short-term      securitization borrowings						1			1			6,283			6,595			8,013												6,283			6,596			8,014
Payables to equipment      operations												4,132			4,649			1,826		$	(4,132)		$	(4,649)		$	(1,826)										^6
Accounts payable and      accrued expenses			11,387			12,757			10,869			3,132			3,116			3,296			(1,986)			(1,964)			(2,003)			12,533			13,909			12,162	^7, 8
Deferred income taxes			343			347			405			344			356			480			(253)			(269)			(437)			434			434			448	^9
Long-term borrowings			8,897			8,756			8,507			32,907			34,788			35,049												41,804			43,544			43,556
Retirement benefits and      other liabilities			1,568			1,646			1,668			67			66			67			(2)			(2)			(1)			1,633			1,710			1,734
Liabilities held for sale																		1,830																		1,830
Total liabilities			22,561			23,921			22,551			60,891			62,952			62,271			(6,373)			(6,884)			(4,267)			77,079			79,989			80,555
Redeemable noncontrolling      interest			50			51			78																					50			51			78
Stockholders' Equity
Total Deere & Company      stockholders' equity			26,300			25,950			22,479			7,013			7,069			7,415			(7,013)			(7,069)			(7,415)			26,300			25,950			22,479	^10
Noncontrolling interests			7			6			7																					7			6			7
Financial Services' equity			(7,013)			(7,069)			(7,415)												7,013			7,069			7,415										^10
Adjusted total      stockholders' equity			19,294			18,887			15,071			7,013			7,069			7,415												26,307			25,956			22,486
Total Liabilities and      Stockholders' Equity		$	41,905		$	42,859		$	37,700		$	67,904		$	70,021		$	69,686		$	(6,373)		$	(6,884)		$	(4,267)		$	103,436		$	105,996		$	103,119

⁶  Elimination of receivables / payables between equipment operations and Financial Services.

⁷  Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.

⁸  Reclassification of other receivables / payables.

⁹  Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

¹⁰ Elimination of Financial Services' equity.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Three Months Ended February 1, 2026 and January 26, 2025 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2026			2025			2026			2025			2026			2025			2026			2025
Cash Flows from Operating Activities
Net income		$	411		$	637		$	244		$	230								$	655		$	867
Adjustments to reconcile net income to net cash provided by      (used for) operating activities:
Provision for credit losses			1			3			35			66									36			69
Depreciation and amortization			342			319			274			265		$	(26)		$	(35)			590			549	^11
Impairments and other adjustments												(32)												(32)
Share-based compensation expense															41			28			41			28	^12
Distributed earnings of Financial Services			350			162									(350)			(162)							^13
Provision (credit) for deferred income taxes			29			(17)			(11)			225									18			208
Changes in assets and liabilities:
Receivables related to sales			18			140									332			923			350			1,063	^14, 16
Inventories			(728)			(784)									(18)			(11)			(746)			(795)	^15
Accounts payable and accrued expenses			(1,410)			(2,073)			(74)			6			(2)			222			(1,486)			(1,845)	^16
Accrued income taxes payable/receivable			(71)			(479)			(17)			(61)									(88)			(540)
Retirement benefits			(191)			(647)			(3)			(41)									(194)			(688)
Other			(94)			(136)			49			117			(21)			3			(66)			(16)	^11, 12, 15
Net cash provided by (used for) operating activities			(1,343)			(2,875)			497			775			(44)			968			(890)			(1,132)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables      related to sales)									8,251			8,345			(153)			(208)			8,098			8,137	^14
Proceeds from maturities and sales of marketable securities			75			9			69			52									144			61
Proceeds from sales of equipment on operating leases									377			433									377			433
Cost of receivables acquired (excluding receivables      related to sales)									(6,044)			(6,093)			21			48			(6,023)			(6,045)	^14
Purchases of marketable securities									(129)			(141)									(129)			(141)
Purchases of property and equipment			(256)			(352)															(256)			(352)
Cost of equipment on operating leases acquired									(456)			(454)			24			15			(432)			(439)	^15
Decrease in trade and wholesale receivables									198			985			(198)			(985)							^14
Collections of receivables from unconsolidated affiliates									105												105
Collateral on derivatives – net			1						(12)			(191)									(11)			(191)
Other			(33)			(51)			(18)			4									(51)			(47)
Net cash provided by (used for) investing activities			(213)			(394)			2,341			2,940			(306)			(1,130)			1,822			1,416
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original      maturities three months or less)			(38)			176			886			(1,660)									848			(1,484)
Change in intercompany receivables/payables			613			1,222			(613)			(1,222)
Proceeds from borrowings issued (original maturities greater      than three months)			166			2,032			614			1,136									780			3,168
Payments of borrowings (original maturities greater than      three months)			(78)			(12)			(3,282)			(1,741)									(3,360)			(1,753)
Repurchases of common stock			(302)			(441)															(302)			(441)
Dividends paid			(441)			(403)			(350)			(162)			350			162			(441)			(403)	^13
Other			(11)			(7)			(4)			(3)									(15)			(10)
Net cash provided by (used for) financing activities			(91)			2,567			(2,749)			(3,652)			350			162			(2,490)			(923)
Effect of Exchange Rate Changes on Cash, Cash      Equivalents, and Restricted Cash			78			(74)			20			(13)									98			(87)
Net Increase (Decrease) in Cash, Cash Equivalents, and      Restricted Cash			(1,569)			(776)			109			50									(1,460)			(726)
Cash, Cash Equivalents, and Restricted Cash at      Beginning of Period			6,364			5,643			2,169			1,990									8,533			7,633
Cash, Cash Equivalents, and Restricted Cash at      End of Period		$	4,795		$	4,867		$	2,278		$	2,040								$	7,073		$	6,907

¹¹ Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

¹² Reclassification of share-based compensation expense.

¹³ Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.

¹⁴ Primarily reclassification of receivables related to the sale of equipment.

¹⁵ Reclassification of direct lease agreements with retail customers.

¹⁶ Reclassification of sales incentive accruals on receivables sold to Financial Services.

SOURCE John Deere Company

Jen Hartmann, Director, Public Relations, [email protected]