Deere (DE) Q3 FY2026: Construction Profit Up 84%, Big Ag Dethroned
Deere's agricultural downcycle turned in the third quarter — but not in the business that defines the company. Quarterly segment operating profit rose 18.4% to $1,856 million on revenue of $12,608 million, yet Production & Precision Agriculture, the row-crop tractor and combine business, saw profit fall 9.1%. Every dollar of the recovery came from Construction & Forestry and Small Agriculture & Turf. Over the first nine months, Small Ag & Turf operating profit ($1,538M) overtook big-ag PPA ($1,372M), having trailed it by 43% a year earlier — a reordering that matters more than the headline beat, because it tells you which cycle actually turned.
1. Consolidated Balance Sheet
1-1. Principal asset lines
Deere's fiscal Q3 ended August 2, 2026. The right comparison is the same quarter a year earlier (July 27, 2025), not the October fiscal year-end, because the equipment business is heavily seasonal.
| Item | Jul 27, 2025 ($M) | Aug 2, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 8,580 | 8,928 | +4.1% |
| Trade accounts and notes receivable – net | 6,103 | 7,723 | +26.5% |
| Financing receivables – net | 43,930 | 42,860 | -2.4% |
| Financing receivables securitized – net | 7,948 | 6,316 | -20.5% |
| Inventories | 7,713 | 7,811 | +1.3% |
| Equipment on operating leases – net | 7,512 | 7,400 | -1.5% |
| Property and equipment – net | 7,713 | 8,006 | +3.8% |
| Goodwill | 4,209 | 4,466 | +6.1% |
| Total assets | 107,817 | 107,607 | -0.2% |
Total assets barely moved. The action is inside the receivables.
