John Deere Capital Posts $198.8M Q1 Profit as Interest Expense Drops 14%
John Deere Capital Corp, the financing arm of agricultural equipment maker Deere & Company, reported net income of $198.8 million for the three months ending February 1, 2026, up 25% from $159.1 million in the prior-year period.
John Deere Capital Corp, the financing arm of agricultural equipment maker Deere & Company, reported net income of $198.8 million for the three months ending February 1, 2026, up 25% from $159.1 million in the prior-year period. The improvement came as interest expense declined and revenue held nearly steady. Read more earnings reports.
Total revenue for the quarter was $1.16 billion, down 3.3% from $1.19 billion in the same quarter last year. Interest expense fell to $548.4 million from $637.3 million, a decline of 14%. Operating expenses edged down to $364.9 million from $369.8 million.
The company's balance sheet showed total assets of $57.51 billion as of February 1, down from $59.99 billion three months earlier and from $58.54 billion a year ago. Total liabilities stood at $51.69 billion, down from $54.06 billion at the end of November 2025 and from $52.33 billion a year earlier.
Cash and cash equivalents totaled $1.69 billion at quarter-end, compared with $1.72 billion a year ago. Stockholders' equity declined to $5.82 billion from $6.21 billion a year earlier, reflecting a drop in retained earnings to $3.58 billion from $4.10 billion.
Cash flow from operations was $347.5 million for the quarter, down sharply from $631.2 million in the prior-year period. Cash from investing activities totaled $2.54 billion, compared with $3.42 billion a year ago. Financing activities consumed $2.81 billion in cash, versus $3.96 billion in the year-earlier quarter.
The company's selling, general, and administrative expenses fell to $99.9 million from $108.9 million. Income tax expense rose to $48.2 million from $32.9 million, reflecting the higher pre-tax income. Other income contributed $41.8 million to the quarter's results, down from $47.8 million a year earlier.
Financial Summary
| Metric | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Total Revenue | $1.16 billion | $1.19 billion |
| Operating Expenses | $364.9 million | $369.8 million |
| Interest Expense | $548.4 million | $637.3 million |
| Net Income | $198.8 million | $159.1 million |
| Total Assets | $57.51 billion | $58.54 billion |
| Stockholders' Equity | $5.82 billion | $6.21 billion |
John Deere Capital Corp is incorporated in Delaware and is classified as a non-accelerated filer. The company has 2,500 common shares outstanding, unchanged from prior periods.