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Deere beats expectations, boosts 2026 net income outlook on construction strength
Deere said construction and forestry sales rose 18% year over year, helping lift quarterly net income 7% to $1.38 billion.
Deere delivered a stronger-than-expected third quarter, with results supported by unexpected strength in construction tied to AI data center and infrastructure spending, Yahoo Finance reports. Construction and forestry sales grew 18% year over year, its fastest-growing major segment.
The company reported quarterly net income of $1.38 billion, up 7% from the prior year, and EPS rose to $5.10 from $4.75. Deere also increased its 2026 net income outlook to a range of $4.75 billion to $5.0 billion, up from the previous lower end of $4.5 billion.
Deere said it expects 2026 to mark the bottom of the current agricultural equipment cycle, but noted pressure in its core farm-equipment business. Production and Precision Agriculture sales fell 6% as farmers face weak commodity prices and difficult farm economics, even as Small Agriculture and Turf sales rose 12% helped by improved milk and beef prices.
The company also pointed to customer backlogs extending well into fiscal 2027, citing visibility into future demand. Deere framed construction strength as a cushion for its earnings while agriculture stabilizes, and it cited early order trends, used equipment inventory improvements, and technology adoption as potential supports for a gradual recovery.