Deere reports strong third quarter, raises 2026 net income outlook

Deere & Company reported third-quarter net income of $1.379 billion, up 7% from $1.289 billion in the same quarter a year earlier. Worldwide net sales and revenues increased 5% to $12.608 billion.

For the first nine months of fiscal 2026, Deere reported net income of $3.808 billion, down 4% from $3.962 billion during the same period in 2025. Net sales for the nine-month period rose 7% to $35.589 billion.

“Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio,” said John C. May, chairman and chief executive officer. “Our performance underscores the strength of our business, supported by stable U.S. market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed.”

For Deere’s Small Agriculture & Turf segment, third-quarter net sales increased 12% to $3.383 billion, while operating profit rose 28% to $622 million. The company attributed the sales increase to higher shipment volumes and favorable price realization.

Construction & Forestry also posted gains, with third-quarter net sales increasing 18% to $3.618 billion. Operating profit rose 84% to $436 million, with Deere citing higher shipment volumes and favorable price realization as key factors.

Production & Precision Agriculture was the weaker segment during the quarter. Net sales declined 6% to $3.998 billion and operating profit fell 9% to $527 million. Deere attributed the decline primarily to lower shipment volumes and sales mix and higher production costs.

Deere also raised its fiscal 2026 net income forecast to a range of $4.75 billion to $5 billion. The company said order trends and improving used-equipment inventories support its view that 2026 will mark the bottom of the current agricultural equipment cycle.

“As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle,” May said. “Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation.”

For fiscal 2026, Deere expects U.S. and Canadian small agriculture and turf sales to be flat to up 5%. Construction equipment sales in the U.S. and Canada are projected to increase 5% to 10%, while compact construction equipment is expected to rise about 5%.