-- 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.
"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 & COMPANYFIRST 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 & COMPANYSTATEMENTS OF CONSOLIDATED INCOMEFor 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 & COMPANYCONDENSED 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 & COMPANYSTATEMENTS OF CONSOLIDATED CASH FLOWSFor 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 & COMPANYSUPPLEMENTAL 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
andStockholders'
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 & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)STATEMENTS OF CASH FLOWSFor 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.
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SOURCE John Deere Company
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(END) Dow Jones Newswires
February 19, 2026 06:22 ET (11:22 GMT)