Deere Q3 Earnings Beat
Deere Reports Strong Q3 Earnings as Construction Gains Offset Agricultural Market Weakness
Key Points
Construction and Forestry sales jumped 18% to $3.62 billion, while Small Agriculture & Turf rose 12% to $3.38 billion, with Production & Precision Agriculture down 6.4% to about $4.0 billion.
Deere's quarterly net sales and revenues rose 6.2% to about $11.0 billion, with total revenues totaling $12.61 billion.
The quarter included $110 million in tariff recoveries booked, and the year-ago period carried a pretax impairment charge on overseas battery operations assets.
Deere shares moved higher in pre-market trading, with the stock rising about 4.35% to roughly $605.89.
Construction and Forestry was the fastest-growing segment in the quarter, aided by rising infrastructure spending in the U.S. and AI-driven expansion in data-center construction, while demand for large tractors and combines remained softer due to costs and lower yields.
Deere reported fiscal third-quarter profit of $1.38 billion and earnings of $5.10 per share on revenue of $12.61 billion, beating analyst expectations Yahoo Finance. The farm equipment giant raised its 2026 net income outlook to $4.75 billion to $5.00 billion, signaling confidence that the agricultural cycle may be bottoming out The Globe and Mail.
Deere's stock rose more than 3% in premarket trading on the strong results Yahoo Finance. Growth in construction and forestry equipment offset weakness in large tractors and combines, which farmers have been reluctant to buy due to high costs and lower crop yields Market Screener.
Construction Gear Drives Growth While Farming Slides
Construction and Forestry sales jumped 18% to $3.62 billion, the fastest-growing segment Grafa. Small Agriculture & Turf rose 12% to $3.38 billion, powered by demand for smaller tractors Yahoo Finance. But Production & Precision Agriculture fell 6.4% to $4.0 billion as farmers delayed big purchases Market Screener.
U.S. infrastructure spending and data-center construction boosted the equipment business Yahoo Finance. Builders and tech companies are buying more machinery. Meanwhile, farmers face tight margins and shrinking used-equipment inventories, which signals a potential turnaround ahead The Globe and Mail.
Tariff Wins and Special Charges Shape Q3 Numbers
The quarter included $110 million in tariff recoveries booked as gains Yahoo Finance. The year-ago period carried a pretax impairment charge on overseas battery operations, which made year-over-year comparisons easier Market Screener. Equipment sales reached $11.0 billion, up 6.2% from the prior year Grafa.
The Agricultural Equipment Cycle May Be Near Its Bottom
Deere's executives believe 2026 will mark the low point of the farm equipment cycle The Globe and Mail. Order trends are improving and used-equipment inventories are shrinking, both signs of recovery Yahoo Finance. These indicators suggest farmers may start replacing old machinery within the next year or two.
The company's raised guidance reflects confidence in this turnaround The Globe and Mail. If inventories keep falling and orders keep rising, Deere could see stronger demand for large tractors and combines by late 2026 or 2027 Market Screener.
Sentiment
Mostly PositivePublishers
15
Articles
93
Reach
108
