What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-28 compared with 2026-02-26 · 159 added, 94 removed, 311 unchanged (45% of the section changed)

8 unchanged sentences

Trends and Economic Conditions

Industry Sales Outlook for Fiscal Year 2026

Industry Sales Outlook for Fiscal Year 2026 (in units)

Agriculture and Turf

4 unchanged sentences

Customers seek to improve profitability, productivity, and sustainability by selecting our equipment and technology solutions.

These technologies are incorporated into customer operations across the varied production systems in which we serve.

These technologies are incorporated into customer operations across the varied production systems that we serve.

While we continue to benefit from the adoption of these technologies, revenue from SaaS products did not represent a significant percentage of our revenues in the periods presented.

Company Outlook for 2026

Large agriculture sales in North America are expected to remain subdued and soften in South America resulting in decreased sales volume for PPA in 2026 compared to 2025.

Large agriculture sales are expected to remain subdued in North America and to soften in South America resulting in decreased sales volume for PPA in 2026 compared to 2025.

SAT and CF sales are expected to improve in 2026.

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● Demand in the U.S.

and Canada for large agriculture equipment is expected to decrease compared to 2025 levels amid challenging farm fundamentals for row crop farmers.

These factors are expected to be partially offset by strong crop production, robust demand for commodities, and normalizing global crop trade flows.

In addition, government programs continue to support farmers’ short-term liquidity.

Ongoing improvements in the used inventory market and the increase in age of used equipment are providing a better environment for machine replacement demand.

and Canada for large agriculture equipment is expected to decrease compared to 2025 levels driven by elevated farm input costs and ongoing global market uncertainty.

These factors are expected to be partially offset by robust demand for commodities and tightening supply which are expected to support improvements in crop prices.

In addition, government programs in the U.S.

continue to support farmers’ short-term liquidity, and recent biofuel policy changes may help provide future demand for U.S.

● We expect small agricultural and turf equipment sales to be flat to up slightly from 2025 levels in the U.S.

The dairy and livestock market continues to generate profits driven by strong beef prices.

The dairy and livestock market continues to maintain strong margins, supporting ongoing product demand.

A modest recovery is anticipated in the turf sector following several years of contraction.

● In Europe, the industry is forecasted to be flat to up slightly despite recent declines in milk prices, supported by a steady interest rate environment, manageable long-term financing costs, and resilient crop yields.

● Demand in South America is expected to be down slightly driven by the Brazilian market where subdued commodity prices, high interest rates, and a stronger Brazilian real are putting pressure on farmer margins.

● Industry sales in Asia are forecasted to be flat to down slightly.

● In Europe, the industry is forecasted to be flat to up slightly.

While elevated interest rates continue to influence purchasing decisions, customer profitability and equipment replacement activity remain relatively stable.

crop farming sector continues to experience subdued conditions;

however, favorable dairy market margins are expected to continue to provide ongoing support to overall industry demand.

● Demand in South America is expected to decrease.

Although crop production and yields remain strong and crop prices have improved, high interest rates, elevated input costs, and a stronger Brazilian real are pressuring farm profitability and reducing near-term equipment demand.

● Industry sales in Asia are forecasted to be roughly flat, mainly driven by demand in India.

Construction and Forestry Industry Outlook for 2026

● Industry sales in the U.S.

and Canada for earthmoving and compact construction equipment are projected to be slightly higher compared to 2025.

government infrastructure spending, declining interest rates, strong rental equipment demand, and data center construction activity continue to provide a solid foundation for the industry.

● Global forestry markets are expected to be flat.

● Global roadbuilding markets are forecasted to be up slightly compared to 2025 driven by market growth in North America and Europe.

and Canada for construction and compact construction equipment are projected to be slightly higher compared to 2025.

Favorable industry fundamentals, including strong customer backlogs supported by large projects, infrastructure investment, and data center construction activity, continue to offset softness in residential construction.

● Global forestry markets are expected to decrease slightly due to continued pressure from weak residential construction demand and lower log and lumber prices.

● Global roadbuilding markets are forecasted to be up compared to 2025 driven by increased road construction spending across multiple geographies.

Financial Services Outlook for 2026

1 unchanged sentence

(–) Prior period special items

+ Provision for credit losses

+ Financing spreads

+ Provision for credit losses

Additional Trends

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and introduced additional trade barriers.

Trade policies impact us in various ways.

We are a net exporter of agriculture and turf equipment from the U.S.

Nearly 75% of our domestic sales are assembled in the U.S., with the remaining products imported primarily from Europe, Mexico, India, and Japan.

Incremental import tariffs adversely affected the cost of our products and components beginning in the third quarter of 2025 and are expected to continue to do so in 2026.

The direct impact of incremental tariffs incurred by us was $361 in the first quarter of 2026, excluding the impact of tariffs on our suppliers and market demand.

Trade policies are evolving, causing uncertainty in the agriculture and construction industries.

We are actively taking steps to mitigate potential impacts on our business, to the extent possible.

On February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

This decision may provide tariff relief and the potential recovery of amounts previously paid.

We are currently evaluating the impact of this decision on our future financial statements.

Incremental import tariffs adversely affected the cost of our products and components beginning in 2025 and continue to do so in 2026.

The direct impact of these incremental tariffs incurred was $372 in the first six months of 2026, net of the tariff recovery described below, and approximately $95 in the first six months of 2025.

These amounts exclude the impact of tariffs on our suppliers and market demand.

On February 20, 2026, the Supreme Court of the United States issued a decision invalidating tariffs imposed pursuant to the International Emergency Economic Powers Act (IEEPA).

On April 20, 2026, the U.S.

Customs and Border Protection (CBP) launched a system to process IEEPA tariff refund claims.

Based on the eligibility parameters established by the CBP for the initial phase of the refund process, we prepared and filed a refund claim in the amount of $272, which has been accepted by the CBP.

We recorded a recovery for this initial amount as we concluded the refund is probable and reasonably estimable.

The recovery was allocated 20%, 30%, and 50% to PPA, SAT, and CF, respectively, decreasing cost of sales.

Trade policies continue to evolve, causing uncertainty in the agriculture and construction industries.

We are actively taking steps to mitigate potential impacts on our business, to the extent possible, including adjusting sourcing strategies, pursuing product exemptions, and identifying cost reduction opportunities.

Changes in the agricultural market business cycle and global trade policies are driven by factors outside of our control, and as a result, we cannot reasonably foresee when these conditions may subside.

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Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as well as independent repair providers, access to our repair tools and any other repair resources available to authorized John Deere dealers.

We are in preliminary discussions with the FTC with respect to a potential resolution.

We are in discussions with the FTC and plaintiff states with respect to a potential resolution.

At this stage, we are unable to estimate the potential impact on our business.

Other Items of Concern and Uncertainties – Other items that could impact our results are:

● slower economic growth and inflation

● global and regional political conditions

● shifts in energy, including positions with respect to biofuels, economic, and positions on government subsidies of farming

● shifts in energy, including positions with respect to biofuels, positions on government subsidies of farming, and changes in energy prices

● input costs, including the availability and price of fertilizers as a result of the conflict in the Middle East

● capital market disruptions

● foreign currency and capital control policies

● right to repair regulations and legislation

● right to repair and agriculture data privacy regulations and legislation

● weather conditions

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● volatility in the prices of many commodities

● slower economic growth

Consolidated Results – 2026 Compared with 2025

Three Months Ended

Six Months Ended

Deere & Company

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Diluted earnings per share

Net sales and revenues increased 13% for the quarter, primarily due to higher sales volumes of $988 and the positive effects of foreign currency translation of $227.

Net income decreased $213, primarily due to incremental tariffs of $272 ($361 pretax) and prior period favorable discrete tax items of $163 described in Note 21, partially offset by the impact of higher shipment volumes of $188 ($249 pretax).

The discussion of segment net sales and operating profit is included in the Business Segment Results below.

Net sales and revenues increased 5% and 8% for the quarter and year-to-date periods, respectively, primarily due to higher sales volumes and the positive effects of foreign currency translation.

Net income decreased $31 in the second quarter primarily due to the impact of lower PPA shipment volumes of $313 ($402 pretax), increased production costs of $122 ($157 pretax) from higher material costs, and higher warranty expenses of $64 ($82 pretax), partially offset by the impact of higher shipment volumes for CF of $148 ($191 pretax) and SAT of $79 ($101 pretax), favorable price realization of $131 ($169 pretax), and the favorable impact of foreign currency exchange of $107 ($138 pretax).

Results for the first six months were also affected by favorable discrete tax items in the prior period (see Note 22) of $163.

The discussion of net sales and operating profit is included in the Business Segment Results below.

An explanation of the cost of sales to net sales ratio and other significant statement of consolidated income changes follows:

Three Months Ended

Six Months Ended

Deere & Company

Cost of sales to net sales

• Material costs

• Tariffs, net of recoveries

• Production efficiencies

Increased mostly due to incremental tariffs, partially offset by production efficiencies resulting from increased manufacturing volumes.

Higher due to increased income earned from extended warranty premiums and higher service revenues.

Increased mostly due to higher material costs as a result of inflationary pressures.

Incremental tariffs affected both periods;

however, tariff recoveries exceeded direct incremental tariff costs in the second quarter (see Global Trade Policies section in Additional Trends).

Production efficiencies had a favorable impact resulting from increased manufacturing volumes for CF and SAT.

Higher for both periods due to income earned from extended warranty premiums, higher service revenues, and a gain on the disposal of property.

Research and development expenses

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Interest expense

Decreased due to lower average borrowing rates and lower average borrowings.

Decreased for both periods primarily due to lower average borrowing rates and lower average borrowings.

Other operating expenses

Increased for both periods due to higher depreciation of equipment on operating leases.

Provision for income taxes

Increased due to favorable discrete tax adjustments recognized in the prior period (see Note 21).

Decreased for the three months ended as a result of lower pretax income.

Increased for the six months ended due to the favorable impact on the prior period of discrete tax adjustments (see Note 22).

Business Segment Results – 2026 compared with 2025

The equipment operations segment results were impacted by incremental tariffs in 2026.

The change in tariff costs was included in the “Production Costs” category below.

The tariff impact was primarily included in the “Production Costs” category below.

Three Months Ended

Six Months Ended

Production & Precision Agriculture

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Currency translation impact on Net sales

Production & Precision Agriculture sales increased for the quarter as a result of the positive effects of foreign currency translation (primarily the Euro and Brazilian real).

Operating profit decreased primarily due to higher tariffs, unfavorable sales mix, and higher warranty expenses.

Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes (primarily in the U.S., Canada, and Brazil), partially offset by the positive effects of foreign currency translation (primarily the Euro and Brazilian real).

Operating profit decreased primarily due to lower shipment volumes and higher production costs from an increase in material and freight costs, partially offset by the favorable effects of foreign currency exchange.

Production & Precision Agriculture Operating Profit

First Quarter 2026 Compared to First Quarter 2025

Second Quarter 2026 Compared to Second Quarter 2025

Sales for the first six months decreased as a result of lower shipment volumes (primarily in the U.S., Canada, and Brazil, offset by Europe), partially offset by the positive effects of foreign currency translation (primarily the Euro and Brazilian real).

Operating profit decreased for the first six months primarily due to lower shipment volumes / sales mix and higher production costs, from an increase in material costs and higher tariffs.

Production & Precision Agriculture Operating Profit

First Six Months 2026 Compared to First Six Months 2025

Three Months Ended

Six Months Ended

Small Agriculture & Turf

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Currency translation impact on Net sales

Small Agriculture & Turf sales increased for the quarter due to higher shipment volumes (primarily in the U.S., Canada, Europe, and India) driven by increased customer demand.

Sales also increased as a result of the positive impact of the Euro foreign currency translation.

Operating profit increased primarily as a result of higher shipment volumes and price realization, partially offset by higher tariffs.

Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes (primarily in the U.S.

and Europe) and the positive effects of foreign currency translation (primarily the Euro).

Operating profit increased due to higher shipment volumes and favorable price realization.

Small Agriculture & Turf Operating Profit

First Quarter 2026 Compared to First Quarter 2025

Second Quarter 2026 Compared to Second Quarter 2025

Sales for the first six months increased as a result of higher shipment volumes (primarily in the U.S., Europe, and India) and the positive effects of foreign currency translation (primarily the Euro).

Operating profit for the first six months increased due to higher shipment volumes and favorable price realization, partially offset by higher production costs, driven by higher tariffs and an increase in material costs.

Small Agriculture & Turf Operating Profit

First Six Months 2026 Compared to First Six Months 2025

Three Months Ended

Six Months Ended

Construction & Forestry

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Currency translation impact on Net sales

Construction & Forestry sales increased for the quarter due to higher U.S.

shipment volumes, driven by increased customer demand from a strong construction market.

Additionally, sales increased as a result of the positive impacts of the Euro foreign currency translation.

Operating profit increased primarily due to higher shipment volumes and production efficiencies, partially offset by higher tariffs.

Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes (primarily in the U.S.) and the positive effects of foreign currency translation (primarily the Euro).

Operating profit increased due to higher shipment volumes and favorable price realization, partially offset by higher production costs, driven by an increase in material costs and higher tariffs.

Construction & Forestry Operating Profit

First Quarter 2026 Compared to First Quarter 2025

Second Quarter 2026 Compared to Second Quarter 2025

Sales for the first six months increased due to higher shipment volumes (primarily in the U.S.) and the positive effects of foreign currency translation (primarily the Euro).

Operating profit increased due to higher shipment volumes and favorable price realization, partially offset by higher tariffs and an increase in material costs.

Construction & Forestry Operating Profit

First Six Months 2026 Compared to First Six Months 2025

Three Months Ended

Six Months Ended

Financial Services

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Interest expense

Revenue decreased primarily due to the deconsolidation of Banco John Deere S.A.

(BJD) in the second quarter of 2025 and a 2% lower average balance of receivables and leases portfolio compared to the same period last year.

Revenue for the first six months decreased primarily due to the deconsolidation of Banco John Deere S.A.

(BJD) in the second quarter of 2025.

The average balance of receivables and leases financed was 1% lower in the second quarter of 2026 and 2% lower in the first six months of 2026 compared with the same periods last year.

Interest expense decreased as a result of lower average borrowing rates and lower average borrowings.

Net income for the quarter increased primarily due to favorable financing spreads and a lower provision for credit losses, partially offset by the prior period decreased valuation allowance on BJD “Assets held for sale” (see Note 21).

Net income for the quarter increased primarily due to favorable financing spreads and favorable derivative valuation adjustments, partially offset by the impact of a lower average portfolio.

Net income in the first six months was also impacted by a lower provision for credit losses and the prior period benefiting from a special item (see Note 22).

Critical Accounting Estimates

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Based on the available sources of liquidity, we expect to meet our funding needs in the short term (next 12 months) and long term (beyond 12 months).

We are forecasting operating cash flows from equipment operations in 2026 to remain flat compared with 2025 driven by an offsetting decrease in net income adjusted for non-cash provisions, and higher cash flows generated from inventory reductions.

We operate in multiple industries, which have unique funding requirements.

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There have been no material changes to the contractual obligations and other cash requirements identified in our most recently filed Annual Report on Form 10-K.

Three Months Ended

Net cash used for operating activities

Six Months Ended

April 27, 2025

Net cash provided by operating activities

Net cash provided by investing activities

1 unchanged sentence

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

Net decrease in cash, cash equivalents, and restricted cash

Cash outflows from consolidated operating activities in the first three months of 2026 were $890.

This resulted mainly from the payout of employee profit-sharing incentives, an increase in inventories, and a reduction in dealer sales incentive accruals, partially offset by net income adjusted for non-cash provisions.

Cash inflows from investing activities were $1,822 in the first three months of this year.

The primary drivers were collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired, partially offset by purchases of property and equipment.

Cash outflows from financing activities were $2,490 in the first three months of 2026 due to lower borrowings, dividends paid, and repurchases of common stock.

Cash returned to shareholders was $743 in the first three months of 2026.

Cash, cash equivalents, and restricted cash decreased $1,460 during the first three months of this year.

Net increase (decrease) in cash, cash equivalents, and restricted cash

Cash inflows from consolidated operating activities in the first six months of 2026 were $1,042.

This resulted mainly from net income adjusted for non-cash provisions, partially offset by an increase in receivables related to sales, an increase in inventories, a decrease in accrued employee profit-sharing incentives, and an OPEB contribution.

Cash inflows from investing activities were $93 in the first six months of this year.

The primary drivers were collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired, partially offset by purchases of property and equipment and the acquisition of Tenna LLC (see Note 21).

Cash outflows from financing activities were $1,627 in the first six months of 2026, due to cash returned to shareholders and lower external borrowings.

Cash returned to shareholders was $1,378 in the first six months of 2026.

Cash, cash equivalents, and restricted cash decreased $398 during the first six months of 2026.

Key Metrics and Balance Sheet Changes

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Trade accounts and notes receivable arise from sales of goods to customers.

Trade receivables increased $676 during the first three months of 2026, and increased $1,062 compared to a year ago, both due to higher sales.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 2% at February 1, 2026, 3% at November 2, 2025, and 6% at January 26, 2025.

Trade receivables increased $2,254 during the first six months of 2026, primarily due to a seasonal increase and higher sales volumes.

These receivables increased $823 compared to a year ago due to higher sales volumes.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1% at May 3, 2026, 3% at November 2, 2025, and 7% at April 27, 2025.

Financing Receivables and Equipment on Operating Leases.

Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes.

Financing receivables and equipment on operating leases decreased $2,902 during the first quarter of 2026, primarily due to seasonal payments and lower retail customer receivables, and decreased $706 in the past 12 months due to lower wholesale notes.

Total acquisition volumes of financing receivables and equipment on operating leases were 12% higher in the first three months of 2026, compared with the same period last year, as volumes of wholesale notes and revolving charge accounts were higher compared to the same period last year.

Inventories increased by $880 during the first three months, primarily due to a seasonal increase.

Inventories increased $542 compared to a year ago due to the effects of foreign currency translation.

A majority of these inventories are valued on the last-in, first-out (LIFO) method.

Financing receivables and equipment on operating leases decreased $2,476 during the first six months of 2026 and decreased $1,600 in the past 12 months.

The decrease for both periods was due to lower agriculture and turf retail customer receivables reflecting reduced demand and lower wholesale receivables driven by lower dealer inventory levels.

Total acquisition volumes of financing receivables and equipment on operating leases were 12% higher in the first six months of 2026, compared with the same period last year, as volumes of wholesale notes, and revolving charge accounts were higher compared to the same period last year.

Inventories increased by $782 during the first six months of 2026 primarily due to a seasonal increase, and increased by $318 compared to a year ago.

A majority of these inventories are valued at cost on the “last-in, first-out” (LIFO) method.

Property and Equipment.

Property and equipment cash expenditures in the first three months of 2026 were $256, compared with $352 in the same period last year.

Capital expenditures in 2026 are estimated to be approximately $1.4 billion.

Property and equipment cash expenditures in the first six months of 2026 were $451 compared with $555 in the same period last year.

Capital expenditures in 2026 are estimated to be approximately $1,400.

Accounts Payable and Accrued Expenses.

Accounts payable and accrued expenses decreased by $1,376 in the first three months of 2026, primarily due to a decrease in accrued expenses associated with employee benefits and dealer sales incentives.

Accounts payable and accrued expenses increased $371 compared to a year ago, due to an increase in accounts payable associated with trade payables, partially offset by a decrease in accrued expenses associated with employee benefits.

Total external borrowings decreased by $1,457 in the first three months of 2026 and decreased $1,902 compared to a year ago, generally corresponding with the level of the receivable and lease portfolio, as well as other working capital requirements.

Accounts payable and accrued expenses decreased by $256 in the first six months of 2026, primarily due to a decrease in accrued expenses associated with employee benefits partially offset by an increase in trade payables.

Accounts payable and accrued expenses increased $308 compared to a year ago due to an increase in trade payables, partially offset by a decrease in accrued expenses associated with employee benefits.

Total external borrowings decreased by $114 in the first six months of 2026 and decreased $2,499 compared to a year ago, generally corresponding with the level of the receivable and lease portfolio, as well as other working capital requirements.

John Deere Capital Corporation (Capital Corporation), a U.S.

financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 10).

The facility was renewed in November 2025, with an expiration in November 2026, and with a total capacity or “financing limit” of $2,500.

At February 1, 2026, $2,025 of securitization borrowings were outstanding under the facility.

The facility was renewed in November 2025, with an expiration in November 2026, and total capacity or “financing limit” of $2,500.

At May 3, 2026, $1,738 of securitization borrowings were outstanding under the facility.

At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first three months of 2026, the financial services operations issued $659 and retired $974 of retail note securitization borrowings, which are presented in “Net proceeds (payments) in total short-term borrowings (original maturities three months or less).”

In the first six months of 2026, the financial services operations issued $1,439 and retired $2,108 of retail note securitization borrowings, which are presented in “Net proceeds (payments) in short-term borrowings (original maturities three months or less).”

Lines of Credit.

We also have access to bank lines of credit with various banks throughout the world.

Worldwide lines of credit totaled $12.2 billion at February 1, 2026, consisting primarily of:

Worldwide lines of credit totaled $12.7 billion at May 3, 2026, consisting primarily of:

● a 364-day credit facility agreement of $5.5 billion expiring in the second quarter of 2027

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● a credit facility agreement of $3.25 billion expiring in the second quarter of 2031

At February 1, 2026, $7.2 billion of these worldwide lines of credit were unused.

At May 3, 2026, $5,947 of these worldwide lines of credit were unused.

For the purpose of computing unused credit lines, commercial paper and short-term bank borrowings were considered to constitute utilization.

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FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled “Overview,” “Trends and Economic Conditions,” 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.

Certain statements contained herein, including in the sections entitled “Overview,” “Trends and Economic Conditions,” 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 our operations generally while others could more heavily affect a particular line of business.

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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.

● macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer practices due to slower economic growth or a recession, regional or global liquidity constraints

● the uncertainty of government policies and actions with respect to the global trade environment including increased and contested tariffs announced by the U.S.

government and retaliatory trade regulations

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● availability and price of raw materials, components, and whole goods

● delays or disruptions in our supply chain

● delays or disruptions in our supply chain, including those arising from geopolitical conflicts

● changes in climate patterns, unfavorable weather events, and natural disasters

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STATEMENTS OF INCOME

For the Three Months Ended February 1, 2026 and January 26, 2025

For the Three Months Ended May 3, 2026 and April 27, 2025

Net Sales and Revenues

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Income before Income Taxes

Provision (credit) for income taxes

Provision for income taxes

Income after Income Taxes

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SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF INCOME

For the Six Months Ended May 3, 2026 and April 27, 2025

Net Sales and Revenues

Finance and interest income

Costs and Expenses

Cost of sales

Research and development expenses

Selling, administrative and general expenses

Interest expense

Interest compensation to Financial Services

Other operating expenses

Income before Income Taxes

Provision for income taxes

Income after Income Taxes

Equity in income (loss) of unconsolidated affiliates

Net loss attributable to noncontrolling interests

Net Income Attributable to Deere & Company

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 & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEETS

Cash and cash equivalents

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Deferred income taxes

Assets held for sale

Liabilities and Stockholders’ Equity

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Retirement benefits and other liabilities

Liabilities held for sale

Total liabilities

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STATEMENTS OF CASH FLOWS

For the Three Months Ended February 1, 2026 and January 26, 2025

For the Six Months Ended May 3, 2026 and April 27, 2025

Cash Flows from Operating Activities

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for credit losses

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Retirement benefits

Net cash provided by (used for) operating activities

Net cash provided by operating activities

Cash Flows from Investing Activities

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Cost of receivables acquired (excluding receivables related to sales)

Acquisition of business, net of cash acquired

Purchases of marketable securities

1 unchanged sentence

Cost of equipment on operating leases acquired

Decrease in trade and wholesale receivables

Increase in trade and wholesale receivables

Collections of receivables from unconsolidated affiliates

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis