Deere Raises FY2026 Net Income Outlook to $4.5-$5B

On 2026-02-19 Deere updated its fiscal 2026 net income guidance range to $4.5–$5.0 billion. The company frames results and outlook around four operating segments — Production and Precision Agriculture (PPA), Small Agriculture and Turf (SAT), Construction and Forestry (CF) and Financial Services (FS) — with equipment operations supported by dealer sales and FS providing retail notes, leases and revolving accounts. The guidance figure is presented on a consolidated basis and replaces prior company guidance for fiscal 2026.

Deere reported equipment operations net sales of $10,224 million in FY2025, down 7% from FY2024, while Financial Services reported revenue of $6,289 million (down 3%). At the end of FY2025, total receivables and leases were $56,938 million (down from $59,428 million), with agriculture/turf retail notes representing roughly 81% of retail notes balance. These recent results and balance-sheet trends provide the backdrop for the company’s updated net income outlook. Management has emphasized multi-year strategic priorities under its refined "Leap Ambitions" (December 2025), focusing on digitalization, automation, autonomy and electrification and positioning equipment and services toward lifecycle solutions and Solutions as a Service. Those strategic investments and the integration of FS with product innovation are part of Deere’s stated plan to drive differentiated offerings over the next several years.

Deere operates in a competitive equipment market and, based on filings, the company does not present a clearly sustainable economic moat; competitive advantages cited are largely operational (dealer network, production systems and an integrated tech stack) rather than structural barriers to entry. Notable risk factors remain relevant to the updated outlook: ongoing FTC and class-action litigation alleging repair-market restraints (a motion to dismiss was denied and discussions are ongoing), regulatory developments around "right to repair," trade and tariff exposures, macro drivers such as commodity prices, farm income and interest rates, supply-chain and currency fluctuations, and credit risk in Financial Services (FY2025 provisioning and delinquency metrics were elevated versus prior periods). Investors should weigh the guidance revision against these exposures and the company's continued strategic investments.