Key Takeaways
- Deere & Company reported third-quarter 2026 net income of $1.379 billion, or $5.10 per diluted share, up 7% from $1.289 billion a year earlier, on net sales and revenues of $12.608 billion.
- The company raised its full-year 2026 net income guidance to a range of $4.75 billion to $5.00 billion.
- Small Agriculture & Turf net sales rose 12% to $3.383 billion with operating margin up to 18.4%, while Production & Precision Agriculture sales fell 6% to $3.998 billion.
- Construction & Forestry net sales climbed 18% to $3.618 billion, with operating profit up 84% to $436 million.
- CEO John May said Deere expects 2026 to mark the bottom of the current agricultural equipment cycle, citing improving used-equipment inventories and rising adoption of the company’s technology.
Deere & Company Posts $1.379 Billion Third-Quarter Profit
Deere & Company reported third-quarter 2026 net income of $1.379 billion, or $5.10 per diluted share, for the period ended August 2, 2026, up 7% from $1.289 billion, or $4.75 per share, a year earlier. Net sales and revenues reached $12.608 billion, up 5%, while net sales alone rose 6% to $10.999 billion. Tariff recoveries added $110 million to the quarter and $382 million over the first nine months of the fiscal year. For the nine months ended August 2, net income fell 4% to $3.808 billion, or $14.06 per share, on net sales and revenues of $35.589 billion, up 7%.
Segment Results Diverge Across the Business
Production & Precision Agriculture, the segment most closely tied to precision agriculture technology, saw net sales drop 6% to $3.998 billion, with operating profit down 9% to $527 million and margin narrowing to 13.2%. Small Agriculture & Turf sales rose 12% to $3.383 billion, with operating profit up 28% to $622 million and margin expanding to 18.4%. Financial Services net income rose 7% to $219 million.
Construction and Turf Lead Deere’s Gains
Construction & Forestry posted the sharpest improvement, with net sales up 18% to $3.618 billion and operating profit climbing 84% to $436 million, lifting margin to 12.1% from 7.7% a year earlier.
Deere & Company Full-Year Guidance Rises as the Ag Cycle Nears Bottom
Deere raised its full-year 2026 net income guidance to a range of $4.75 billion to $5.00 billion. The company expects U.S. and Canada large-ag sales to fall 15% to 20% for the year and South American tractor and combine sales to decline by a similar margin, while U.S. and Canada construction equipment sales are projected to rise 5% to 10%. Deere’s own view that 2026 marks the cycle bottom lines up with wider agtech industry trends reported heading into the year.
“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 of Deere & Company. “We continue to believe 2026 will mark the bottom of the current ag equipment cycle. 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.”
