Deere Posts First Quarterly Profit Growth in Nearly Three Years, Lifts FY2026 Outlook
Deere & Company reported its first rise in quarterly profit in nearly three years on Thursday, lifted by surging demand for construction equipment as infrastructure spending and the AI data center buildout power growth in its Construction & Forestry segment.
The Moline, Illinois-based manufacturer posted net income of $1.379 billion for the fiscal third quarter ended Aug. 2, up 7% from $1.289 billion a year earlier. Diluted earnings per share came in at $5.10, versus $4.75 in the year-ago quarter. Net sales rose about 6% to $11.0 billion.
Construction & Forestry was the standout: segment net sales jumped 18% to $3.618 billion, while operating profit surged 84% to $436 million, the company said. Deere cited rising U.S. government and private infrastructure investment and the vast AI-fueled buildout of data centers as key demand drivers, helping it weather a prolonged downturn in large agricultural machinery.
Small Agriculture & Turf also gained ground, with net sales up 12% to $3.383 billion and operating profit up 28%. Production & Precision Agriculture, the large tractor and combine business, declined 6% in net sales to $3.998 billion, reflecting the ongoing softness in big ag markets.
Deere raised its full-year net income forecast to a range of $4.75 billion to $5.00 billion, up from $4.5 billion to $5.0 billion previously. Management said it continues to view fiscal 2026 as the bottom of the current agricultural equipment cycle.
Shares were up about 2% in pre-market trading following the results.