Deere & Company (DE) Financial Analysis

Snapshot

Deere & Company generated revenue of $45.7 billion in FY2025, down from $51.7 billion in FY2024, while net income was $5.0 billion in FY2025, down from $7.1 billion in FY2024. Diluted EPS was $18.50 in FY2025, compared with $25.62 in FY2024.

Revenue was $12.6 billion in Q3 FY2026, and operating income was $1.9 billion in Q3 FY2026. Net income reached $1.4 billion in Q3 FY2026, while diluted EPS was $5.10 in Q3 FY2026. Revenue was $48.0 billion in TTM to Q3 FY2026, and market capitalisation was $186.1 billion as of September 28, 2026.

Growth

Revenue declined by −11.7% in FY2025 against FY2024, to $45.7 billion in FY2025. The revenue compound annual growth rate was −4.58% in FY2022–FY2025 and 5.15% in FY2020–FY2025. Diluted EPS declined by −27.8% in FY2025 against FY2024, to $18.50 in FY2025; its compound annual growth rate was −7.37% in FY2022–FY2025 and 16.3% in FY2020–FY2025.

Free cash flow declined by −15.8% in FY2025 against FY2024, to $8.0 billion in FY2025. Revenue increased by 4.91% in Q3 FY2026 against Q3 FY2025, while diluted EPS increased by 7.37% in Q3 FY2026 against Q3 FY2025. Free cash flow declined by −20.1% in Q3 FY2026 against Q3 FY2025.

Profitability

Gross margin was 38.4% in FY2025, compared with 40.5% in FY2024, a change of −2.1 percentage points in FY2024–FY2025. Operating margin was 13.7% in FY2025, compared with 17.8% in FY2024, a change of −4.1 percentage points in FY2024–FY2025. Net margin was 10.9% in FY2025, compared with 13.7% in FY2024.

Despite the latest-year declines, gross margin changed by 5.0 percentage points in FY2020–FY2025, operating margin changed by 2.8 percentage points in FY2020–FY2025, and net margin changed by 3.2 percentage points in FY2020–FY2025. Return on equity was 20.6% in FY2025, return on assets was 4.71% in FY2025, and return on invested capital was 4.88% in FY2025.

Balance sheet

Total debt was $63.9 billion in FY2025, compared with $65.2 billion in FY2024, while net debt was $54.2 billion in FY2025, compared with $56.7 billion in FY2024. Cash and short-term investments were $9.7 billion in FY2025, up from $8.5 billion in FY2024. Shareholders’ equity was $26.0 billion in FY2025, compared with $22.8 billion in FY2024.

Net debt was $53.6 billion in Q3 FY2026, a change of −$929.0 million in Q3 FY2026 against Q2 FY2026 and −$3.1 billion in Q3 FY2026 against Q3 FY2025. The current ratio was 2.1× in Q3 FY2026, and debt to equity was 2.3× in Q3 FY2026. Working capital was $41.9 billion in FY2025.

Cash flow & capital return

Operating cash flow was $7.5 billion in FY2025, down from $9.2 billion in FY2024, while capital expenditure was $557.0 million in FY2025, compared with $289.0 million in FY2024. Free cash flow was $8.0 billion in FY2025, down from $9.5 billion in FY2024, and represented 160.4% of net income in FY2025.

Dividends paid were $1.7 billion in FY2025, and net share repurchases were $1.1 billion in FY2025. Capital returned to shareholders was $2.9 billion in FY2025 and $25.6 billion in FY2021–FY2025. Weighted average shares were 270.9 million shares in FY2025, compared with 276.0 million shares in FY2024; share count changed by −13.6% in FY2020–FY2025. Free cash flow was $2.4 billion in Q3 FY2026.

Valuation

The P/E was 38.2× as of September 28, 2026, higher than the 16.9× five-year median as of September 28, 2026, over the five fiscal years to FY2025, and the 18.4× ten-year median as of September 28, 2026, over the ten fiscal years to FY2025. The P/E was also higher than the 23.5× industry median as of September 28, 2026.

The P/S was 3.9× as of September 28, 2026, higher than the 2.3× five-year median, the 1.9× ten-year median, and the 0.8× industry median as of September 28, 2026. The P/B was 6.6× as of September 28, 2026, higher than the 4.9× five-year median, the 4.9× ten-year median, and the 1.4× industry median as of September 28, 2026. EV/Sales was 5.0× as of September 28, 2026, higher than its 3.3× five-year median, 2.9× ten-year median, and 1.2× industry median as of September 28, 2026.

What changed since last quarter

Revenue was $12.6 billion in Q3 FY2026, down by −5.69% in Q3 FY2026 against Q2 FY2026 but up by 4.91% in Q3 FY2026 against Q3 FY2025. Management attributes the year-over-year increase in quarterly net sales and revenues to higher sales volumes, favorable price realization, and foreign currency translation. Diluted EPS was $5.10 in Q3 FY2026, down by −22.1% in Q3 FY2026 against Q2 FY2026 and up by 7.37% in Q3 FY2026 against Q3 FY2025.

Gross margin was 37.0% in Q3 FY2026, unchanged by 0.0 percentage points in Q3 FY2026 against Q3 FY2025, while operating margin was 14.9% in Q3 FY2026, up by 1.6 percentage points in Q3 FY2026 against Q3 FY2025. Management attributes the quarterly increase in net income to favorable price realization, partly offset by unfavorable tax impacts and higher production costs, primarily from material costs.

Open questions

How will agricultural equipment demand develop across the company’s geographic markets?
To what extent will material costs, tariffs and price realization affect future margins?
How will the balance between lower financing receivables and higher acquisition volumes develop?
What will be the effect of construction, roadbuilding and forestry market conditions on sales mix?

Sources

Form 10-Q filed August 27, 2026 — management’s discussion and analysis

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.