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Deere Lifts 2026 Profit Outlook as Shares Hit New Highs

Recovery in construction alongside small agriculture, boosted by infrastructure and data‑center building, underpins the new outlook.

Overview

  • First‑quarter worldwide net sales and revenues rose 13% to $9.61 billion, while attributable net income fell to $656 million from $869 million a year earlier.
  • Deere raised full‑year fiscal 2026 net income guidance to $4.5 billion to $5.0 billion, up from $4.0 billion to $4.75 billion, and said this year likely marks the cycle’s bottom.
  • Shares jumped nearly 12% to fresh highs after the beat‑and‑raise update and commentary on improving demand drivers.
  • Segment results diverged as Production & Precision Agriculture profit fell 59% while Small Agriculture & Turf rose 58% and Construction & Forestry more than doubled.
  • Management continues factory production cuts and dealer inventory reductions; 2026 sales are projected down 5%–10% in large agriculture with roughly 15% growth expected in small agriculture and construction.