Deere lifts 2026 profit view as AI construction boom lifts quarterly income

Deere's quarterly profit per share came in at $5.10, up from $4.75 per share a year earlier and above analysts' estimates of $4.70 per share, according to data compiled by LSEG. The company recorded a tariff refund of $110 million during the period.

Total quarterly revenue rose 6% to $11 billion, also beating expectations of $10.73 billion.

The John Deere tractor manufacturer expects 2026 net income of $4.75 billion to $5 billion, compared with its earlier projection of $4.5 billion to $5 billion. The midpoint of the new range is in line with Wall Street expectations.

Deere shares were up 2.7% in premarket trading.

Revenue at its mainstay Production & Precision Agriculture segment dropped 6% from a year earlier, though CEO John C. May said Deere continues "to believe 2026 will mark the bottom of the current ag equipment cycle."

But commodity pricing softness "acts as a hard ceiling on major sales recovery," Third Bridge Capital's Ryan Keeney said.

"Farm economics are still quite pressured and it remains to be seen if peers like AGCO and CNH are going to push discounts and price, which could weaken the already soft environment before a recovery."

Deere's Small Ag & Turf segment — home to low horsepower tractors often used in dairy farming — posted a 12% rise in net sales as demand was aided by improving milk and beef prices.

Aug. 20 (Reuters) - Deere, the world's largest farm equipment manufacturer, raised its full-year net income forecast on Thursday and posted its first rise in quarterly profit in three years amid an AI-driven construction boom and tariff refunds.