Deere & Company Reports 5% Revenue Growth in Q3 2026, Acquires Tenna LLC

Deere & Company reported a solid financial performance for the third quarter and first nine months of fiscal 2026, with net sales and revenues reaching $12.6 billion and $35.6 billion, respectively. This marks a 5% increase for the quarter and a 7% increase year-to-date compared to the same periods in 2025. The company's net income attributable to Deere rose to $1.4 billion for the quarter, up 7% from $1.3 billion in the prior year, while year-to-date net income decreased slightly to $3.8 billion from $4.0 billion. Diluted earnings per share for the quarter were $5.10, compared to $4.75 in the same quarter last year.

The financial results reflect a combination of higher sales volumes, favorable foreign currency translation effects, and improved price realization. However, the company faced challenges, including increased production costs and unfavorable tax impacts. The cost of sales as a percentage of net sales improved to 72.2% from 73.1% in the prior year, driven by production efficiencies and tariff recoveries. Research and development expenses increased by 2% for the quarter and 4% year-to-date, reflecting Deere's commitment to advancing technology solutions.

Strategically, Deere made significant moves in 2026, including the acquisition of Tenna LLC, a construction technology company, for $439 million. This acquisition is expected to enhance Deere's capabilities in asset tracking and mixed-fleet operations. The company also continued to focus on integrating technology into its equipment offerings, aligning with its Smart Industrial Operating Model. Despite these advancements, Deere anticipates a decline in large agriculture equipment sales in North America and South America, which may impact overall sales volumes in the coming year.

Operationally, Deere's customer base and engagement metrics showed positive trends, with trade accounts and notes receivable increasing significantly due to higher sales volumes. The company reported a total of $7.7 billion in trade accounts and notes receivable as of August 2, 2026, up from $5.3 billion a year earlier. Additionally, Deere's cash and cash equivalents rose to $8.9 billion, reflecting strong liquidity. Looking ahead, Deere expects overall net sales to increase in 2026, driven by improvements in its Construction & Forestry and Small Agriculture & Turf segments, despite anticipated declines in the Production & Precision Agriculture segment.