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John Deere posts higher revenue on AI-driven construction sales
Construction and forestry sales rose 18% to $3.6 billion, helping offset a 6.4% year over year drop in agriculture revenue as Deere warns volumes could fall 15% to 20% in the US and Canada.
John Deere reported fiscal third-quarter results Thursday, with revenue rising 6.2% year over year to $11.0 billion and income increasing 7.0% to $1.4 billion, both above Wall Street expectations, Yahoo Finance reported.
The company said its construction and forestry business benefited from an AI infrastructure buildout, with construction and forestry sales up 18% year over year to $3.6 billion, while shares rose 6.94% following the release.
Deere also highlighted the outlook for its agriculture division, where sales fell 6.4% year over year in the quarter to $4.0 billion as fewer shipments were booked amid lower farm incomes.
In a full-year industry outlook, Deere forecast US and Canada agriculture equipment volumes will decline 15% to 20% this year, while construction equipment volumes are expected to rise 5% to 10%, and executives said customer backlogs extend well into fiscal year 2027.