What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-27 compared with 2026-05-28 · 110 added, 118 removed, 352 unchanged (39% of the section changed)

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SAT and CF sales are expected to improve in 2026.

Our net sales are expected to increase in 2026 compared to 2025, with the anticipated decline in PPA sales more than offset by improvements in CF and SAT.

Our overall net sales are expected to increase in 2026 compared to 2025, with the anticipated decline in PPA sales more than offset by improvements in CF and SAT.

Agriculture and Turf Industry Outlook for 2026

● Demand in the U.S.

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 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.

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.

and Canada for large agriculture equipment is expected to decrease compared to 2025 levels as elevated farm input costs, commodity price volatility, and ongoing market uncertainty continue to pressure demand for equipment.

● We expect small agriculture and turf equipment sales to be flat to up slightly in the U.S.

Solid margins in the dairy and livestock sector and steady demand in residential and commercial mowing continue to support the outlook.

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

While elevated input costs and challenging weather conditions are pressuring crop farming margins, 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.

Elevated production costs and high interest rates are pressuring farm profitability and impacting equipment demand.

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

Construction and Forestry Industry Outlook for 2026

● Industry sales in the U.S.

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.

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

Favorable industry fundamentals are supported by infrastructure, data center, and energy-related projects, as well as continued investment in rental fleets.

● Global forestry markets are expected to decrease due to continued pressure from subdued 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 investment across multiple geographies.

Financial Services Outlook for 2026

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These factors affect farmers’ income and sentiment which may result in varying demand for our equipment.

In 2026, we may experience the following effects due to unfavorable market conditions:

In 2026, we may experience the following effects due to unfavorable large agriculture market conditions:

lower sales volumes, higher sales incentives, and elevated receivable write-offs.

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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.

The direct impact of these incremental tariffs incurred was $502 in the first nine months of 2026, net of the tariff recovery described below, and approximately $300 in the first nine 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.

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.

We recorded tariff recoveries in the third quarter and first nine months of 2026 of $110 and $382, respectively, as we concluded the refunds are probable and reasonably estimable.

As of August 2, 2026, approximately 80% of the recorded tariff recoveries have been received.

The recovery was allocated 20%, 25%, and 55% 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.

We continue to pursue opportunities to mitigate impacts on our business, to the extent possible, including adjusting sourcing strategies, seeking 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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The Attorneys General of the States of Arizona, Michigan, and Wisconsin joined the lawsuit.

The lawsuit alleges monopolization and unfair competition in violation of the federal and state antitrust laws.

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 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.

On July 8, 2026, we entered into a settlement with the FTC and plaintiff states to resolve all claims contained in the lawsuit.

As part of that settlement, we have agreed, among other items, to provide certain repair resources to farmers and independent repair providers on “fair and reasonable terms” (as defined by the settlement).

We have also agreed to provide regular reporting to the FTC and submit to the FTC’s oversight of our compliance with the settlement.

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

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Three Months Ended

Six Months Ended

Nine Months Ended

Deere & Company

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Diluted earnings per share

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:

Net sales and revenues increased 5% and 7% for the quarter and year-to-date periods, respectively, primarily due to higher sales volumes, the positive effects of foreign currency translation, and favorable price realization.

Net income increased $90 in the third quarter primarily due to favorable price realization of $286 ($403 pretax), partially offset by unfavorable tax impacts of $114 and increased production costs of $89 ($126 pretax), primarily from higher material costs.

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

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

Three Months Ended

Six Months Ended

Nine Months Ended

Deere & Company

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• Production efficiencies

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).

Higher material costs driven by inflationary pressures.

Incremental tariffs affected all periods.

The favorable tariff impact for the quarter was due to recognition of recoveries (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.

Higher for both periods due to income earned from extended warranty premiums.

Research and development expenses

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Provision for income taxes

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).

Higher for both periods primarily due to current year unfavorable discrete items and the first nine months were impacted by a prior period special tax item (see Note 22).

Business Segment Results – 2026 compared with 2025

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Three Months Ended

Six Months Ended

Nine Months Ended

Production & Precision Agriculture

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Currency translation impact on Net sales

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 sales decreased for the quarter as a result of lower shipment volumes (primarily in Brazil and Europe), partially offset by favorable price realization and the positive effects of foreign currency translation (primarily the Brazilian real and Australian dollar).

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

Production & Precision Agriculture Operating Profit

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.

Third Quarter 2026 Compared to Third Quarter 2025

Sales for the first nine months decreased 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 Brazilian real and Euro).

Operating profit decreased for the first nine months primarily due to lower shipment volumes and higher production costs, driven primarily by an increase in material costs, partially offset by favorable price realization.

Production & Precision Agriculture Operating Profit

First Six Months 2026 Compared to First Six Months 2025

First Nine Months 2026 Compared to First Nine Months 2025

Three Months Ended

Six Months Ended

Nine Months Ended

Small Agriculture & Turf

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Currency translation impact on Net sales

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 sales increased for the quarter as a result of higher shipment volumes (primarily in the U.S.) and favorable price realization.

Operating profit increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs from increased material costs.

Small Agriculture & Turf Operating Profit

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.

Third Quarter 2026 Compared to Third Quarter 2025

Sales for the first nine months increased as a result of higher shipment volumes (primarily in the U.S., Europe, and India) and favorable price realization.

Operating profit for the first nine months increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs due to an increase in material costs.

Small Agriculture & Turf Operating Profit

First Six Months 2026 Compared to First Six Months 2025

First Nine Months 2026 Compared to First Nine Months 2025

Three Months Ended

Six Months Ended

Nine Months Ended

Construction & Forestry

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Currency translation impact on Net sales

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 sales increased for the quarter primarily as a result of higher shipment volumes (primarily in the U.S.) and favorable price realization.

Operating profit increased due to favorable price realization, partially offset by higher selling, administrative and general and research and development expenses.

Construction & Forestry Operating Profit

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.

Third Quarter 2026 Compared to Third Quarter 2025

Sales for the first nine months increased due to higher shipment volumes (primarily in the U.S.) and favorable price realization.

Operating profit increased due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs from increased material costs and higher selling, administrative and general and research and development expenses.

Construction & Forestry Operating Profit

First Six Months 2026 Compared to First Six Months 2025

First Nine Months 2026 Compared to First Nine Months 2025

Three Months Ended

Six Months Ended

Nine Months Ended

Financial Services

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Interest expense

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.

Revenue decreased for both periods primarily due to a lower average portfolio.

The average balance of receivables and leases financed was 2% lower in the third quarter of 2026 and 2% lower in the first nine 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 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).

Net income for both periods increased primarily due to favorable financing spreads, partially offset by the impact of a lower average portfolio.

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

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 higher accounts payable and accrued expenses and 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.

Six Months Ended

April 27, 2025

Nine Months Ended

August 2, 2026

July 27, 2025

Net cash provided by operating activities

Net cash provided by investing activities

Net cash used for investing activities

Net cash used for financing activities

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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.

Cash inflows from consolidated operating activities in the first nine months of 2026 were $3,250.

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, and a decrease in accrued employee benefits.

Cash outflows from investing activities were $825 in the first nine months of this year.

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

Cash outflows from financing activities were $1,828 in the first nine months of 2026, primarily due to cash returned to shareholders.

Cash returned to shareholders was $2,013 in the first nine months of 2026.

Cash, cash equivalents, and restricted cash increased $617 during the first nine 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 $2,254 during the first six months of 2026, primarily due to a seasonal increase and higher sales volumes.

Trade receivables increased $2,406 during the first nine months of 2026, primarily due to a seasonal increase and higher sales volumes.

These receivables increased $1,620 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.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1% at August 2, 2026, 3% at November 2, 2025, and 3% at July 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 $2,476 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.

Financing receivables and equipment on operating leases decreased $2,430 during the first nine months of 2026 and decreased $2,814 in the past 12 months.

The decrease for both periods was due to lower agriculture and turf retail customer receivables reflecting reduced demand in recent years and lower wholesale receivables.

Total acquisition volumes of financing receivables and equipment on operating leases were 8% higher in the first nine 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 $405 during the first nine months of 2026 primarily due to a seasonal increase and increased by $98 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 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.

Property and equipment cash expenditures in the first nine months of 2026 were $716 compared with $852 in the same period last year.

Capital expenditures in 2026 are estimated to be approximately $1.3 billion.

Accounts Payable and Accrued Expenses.

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.

Accounts payable and accrued expenses decreased by $241 in the first nine months of 2026, primarily due to a decrease in accrued expenses associated with employee benefits and dealer sales incentives, partially offset by an increase in trade payables and derivative liabilities.

Accounts payable and accrued expenses increased $86 compared to a year ago due to an increase in trade payables and accrued expenses for warranty liabilities, partially offset by a decrease in accrued expenses associated with accrued taxes and employee benefits.

Total external borrowings decreased by $100 in the first nine months of 2026 and decreased $2,810 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.

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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 August 2, 2026, $1,818 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 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).”

In the first nine months of 2026, the financial services operations issued $2,525 and retired $3,027 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 $12.7 billion at May 3, 2026, consisting primarily of:

Worldwide lines of credit totaled $12.6 billion at August 2, 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 May 3, 2026, $5,947 of these worldwide lines of credit were unused.

At August 2, 2026, $5,201 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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Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, reduced access to debt capital markets, and may adversely impact our liquidity.

The senior long-term and short-term debt ratings and outlook currently assigned to unsecured company securities by the rating agencies engaged by us are as follows:

The senior long-term and short-term debt ratings and outlook currently assigned to our unsecured securities by the rating agencies engaged by us are as follows:

Fitch Ratings

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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.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon.

Forward-looking statements are based on information currently available to us and our current assumptions, expectations, and projections about future events and should not be relied upon.

Except as required by law, we expressly disclaim any obligation to update or revise our forward-looking statements.

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● 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 including the availability and price of fertilizer, government farm programs, and availability of transport for crops

● 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

● construction and forestry activity, which is affected by factors such as housing starts and supply, real estate and housing prices, levels of residential and non-residential construction, public and private infrastructure development, and government policies and regulations

● macroeconomic conditions, including unemployment, inflation, interest rate volatility, energy price increases resulting from geopolitical conflicts, changes in consumer sentiment and 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 contested tariffs announced by the U.S.

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● political, economic, and social instability in the geographies in which we operate

● worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for our equipment

● worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and the resulting impacts on the demand for our 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 our 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

● selling products domestically or internationally, managing increased costs of production, absorbing or passing on increased expenses, as well as accurately predicting financial results and industry trends

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

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dollar, customer confidence, access to capital, and demand for our 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 our Smart Industrial Operating Model and refined Leap Ambitions

● dealer practices and their ability to manage new and used inventory, distribute our 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

● attracting, developing, engaging, and retaining qualified employees

● adapting in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology

● realizing the anticipated benefits of our Smart Industrial Operating Model, achieving our Leap Ambitions, and executing our related business strategies in production systems, precision technologies, and aftermarket support

● our dealer network’s development and implementation of successful sales plans, management of new and used inventory, distribution of our products, and support and service for our precision technology solutions

● achieving anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes

● negative claims or publicity that damage our reputation or brand

● the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge

● the impact of workforce reductions on our culture, employee retention and morale, and institutional knowledge

● labor relations and contracts, including work stoppages and other disruptions

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● 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

advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environment (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, right-to-repair, 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 our 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 we unlawfully withheld self-repair capabilities from farmers and independent repair providers

● investigations, claims, lawsuits, or other legal proceedings

● loss of or challenges to intellectual property rights

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STATEMENTS OF INCOME

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

For the Three Months Ended August 2, 2026 and July 27, 2025

Net Sales and Revenues

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STATEMENTS OF INCOME

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

For the Nine Months Ended August 2, 2026 and July 27, 2025

Net Sales and Revenues

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STATEMENTS OF CASH FLOWS

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

For the Nine Months Ended August 2, 2026 and July 27, 2025

Cash Flows from Operating Activities

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

Provision for credit losses

Provision (credit) for credit losses

Depreciation and amortization

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Cost of receivables acquired (excluding receivables related to sales)

Acquisition of business, net of cash acquired

Acquisitions of businesses, net of cash acquired

Purchases of marketable securities

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Cost of equipment on operating leases acquired

Increase in investment in Financial Services

Increase in trade and wholesale receivables

1 unchanged sentence

Collateral on derivatives – net

Net cash provided by (used for) investing activities

Net cash used for investing activities

Cash Flows from Financing Activities

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Repurchases of common stock

Capital investment from Equipment Operations

Dividends paid

Net cash provided by (used for) financing activities

Net cash used for financing activities

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash

Net Increase in Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

6 unchanged sentences

16 Reclassification of sales incentive accruals on receivables sold to Financial Services .

17 Elimination of change in investment from equipment operations to Financial Services.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

2 unchanged sentences

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