DE · Earnings call · 2026Q3T · Full report

Segment Profitability

DEERE & CO · 2026-08-20 · Importance 37 · Surprise 32 · In source text

Equipment operations achieved a 14.4% operating margin in the third quarter. Production and Precision Ag operating profit was $527 million at a 13.2% margin, with lower volumes and higher production costs outweighing favorable pricing and currency. Small Ag and Turf operating profit rose year over year to $622 million at an 18.4% margin, driven by volume, sales mix, and price realization despite higher production costs. Construction and Forestry operating profit increased to $436 million at a 12.1% margin, with favorable pricing partly offset by higher SG&A and R&D costs.

Key facts

• Production and Precision Ag full-year operating margin forecast narrowed to between 11% and 12%.
• Small Ag and Turf full-year operating margin guide increased to between 14.5% and 15.5%.
• Construction and Forestry forecast for the segment's operating margin has been tightened to between 10.5% and 11.5% for the year.
• Production and Precision Ag operating profit for the quarter was $527 million with a 13.2% operating margin.
• Small Ag and Turf operating profit for the quarter was $622 million, with an 18.4% operating margin.
• Construction and Forestry operating profit for the quarter was $436 million with a 12.1% operating margin.
• Net income attributable to Deere and Company for the quarter was $1.379 billion, or $5.10 per diluted share.
• Worldwide Financial Services net income attributable to Deere and Company in the third quarter was $219 million.

Impact estimates