Deere & Company grew net sales and revenue during its fiscal Q3 2026 despite inflationary pressures.
Christopher Seibert, director of investor relations, characterized the inflationary environment as dynamic.
“You think about oil prices, how they move and what that means,” Seibert said. “And also from a tariff perspective, suppliers experiencing tariffs too, they pass that on to us and negotiate with us around these. So still, I would call it a dynamic inflationary environment, but we are kind of committed to cover that.”
Deanna Kovar, president of Deere’s Worldwide Ag & Turf Division, Production and Precision Ag and Americas and Australia, praised the company’s growing digital technology.
“I would also highlight the continued growth of our digital ecosystem and the increasingly important role the John Deere Operations Center plays in helping customers turn data into better decisions,” Kovar said.
How Deere is using digital technology to grow sales
She shared that Deere now has more than 520 million “engaged” acres with more than 1.2 million connected machines. “Highly engaged” acres have grown double digits year over year, to more than 190 million acres.
Through the John Deere operations center, she said, the company is turning that “growing stream of operational data into actionable insights that help growers better understand performance across their operations. We will soon build on that foundation with AI-enabled capabilities designed to unlock even more value from the data within operations center.”
Additionally, Deere now has more than 450,000 unique active monthly digital users engaging with its tools, according to Kovar.
“All of this emphasizes our excitement about the value our Precision technologies and digital offerings are creating for customers, especially as farm profitability remains under pressure,” Kovar said. “With seed, fertilizer and crop protection products representing roughly 70% of our farmers’ operating costs, technologies that help optimize those investments play an increasingly critical role.”
Deploying those technologies as an integrated system helps to improve farm economics, she said. That could result in double-digit savings in variable operating costs. It also could generate “meaningful” yield improvement for farmers, she said.
Deere sales and revenue in fiscal Q3 2026
In its fiscal Q3 2026, Deere & Company net sales and revenue rose to about $12.61 billion. That was a 5% increase from about $12.02 billion the prior year.
Year to date, Deere net sales and revenue increased to about $35.59 billion, up 7% from $33.29 billion.
“Whether through technology adoption, expansion of our digital ecosystem with solutions like Tenna or growth of our equipment portfolio, we see a strong runway ahead,” said Brent Norwood, chief financial officer.
Deere received $110 million in incremental tariff refunds in its fiscal Q3. In total, the company anticipates $382 million in IEEPA tariff refunds this year. In that context, its outlook for the remainder of fiscal 2026 assumes no further refund activity.
However, it still anticipates tariff-related expenses.
“Looking beyond refunds, following the changes to the Section 122, 232 and 301 tariff policies, we now expect direct tariff expense of approximately $1.1 billion for the fiscal year, excluding IEEPA refunds,” Seibert stated.
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