European Investor
20 Aug 2026, 14:05
Deere Stock Rises 3.8% as Strong Q3 Results and Improved Outlook Signal Ag Cycle Bottom
Deere & Company (NYSE: DE) shares rose about 3.8% Thursday after the agricultural and construction equipment maker reported stronger-than-expected fiscal third-quarter results and improved its full-year profit outlook.
Earnings Rise as Construction Business Surges
Third-quarter net income increased 7% year over year to $1.379 billion, while diluted EPS rose to $5.10 from $4.75. Worldwide net sales and revenues increased 5% to $12.61 billion.
Performance was particularly strong in Construction & Forestry, where sales jumped 18% to $3.62 billion and operating profit surged 84% to $436 million. Small Agriculture & Turf sales increased 12%, with operating profit rising 28%.
Large agricultural equipment remained weaker, with Production & Precision Agriculture sales declining 6% and operating profit falling 9%.
Deere Raises Outlook and Sees Ag Cycle Bottom
A key catalyst for the stock appears to be Deere's improved outlook. The company now expects fiscal 2026 net income of $4.75 billion to $5.00 billion.
Management also reiterated its view that 2026 will mark the bottom of the current agricultural equipment cycle, citing early order trends, improving used-equipment inventories and increasing adoption of advanced technologies.
The combination of stronger quarterly earnings, robust construction and small-agriculture performance, and greater confidence that the agricultural equipment downturn is nearing a bottom provides a likely explanation for DE's 3.8% gain.
Deere & Company (NYSE: DE) shares rose about 3.8% Thursday after the agricultural and construction equipment maker reported stronger-than-expected fiscal third-quarter results and improved its full-year profit outlook.
Earnings Rise as Construction Business Surges
Third-quarter net income increased 7% year over year to $1.379 billion, while diluted EPS rose to $5.10 from $4.75. Worldwide net sales and revenues increased 5% to $12.61 billion.
Performance was particularly strong in Construction & Forestry, where sales jumped 18% to $3.62 billion and operating profit surged 84% to $436 million. Small Agriculture & Turf sales increased 12%, with operating profit rising 28%.
Large agricultural equipment remained weaker, with Production & Precision Agriculture sales declining 6% and operating profit falling 9%.
Deere Raises Outlook and Sees Ag Cycle Bottom
A key catalyst for the stock appears to be Deere's improved outlook. The company now expects fiscal 2026 net income of $4.75 billion to $5.00 billion.
Management also reiterated its view that 2026 will mark the bottom of the current agricultural equipment cycle, citing early order trends, improving used-equipment inventories and increasing adoption of advanced technologies.
The combination of stronger quarterly earnings, robust construction and small-agriculture performance, and greater confidence that the agricultural equipment downturn is nearing a bottom provides a likely explanation for DE's 3.8% gain.
