Deere raises 2026 profit view as AI construction boom lifts quarterly income
DE•Agriculture segments remain under pressure
Quarterly 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."
Deere's Small Ag & Turf segment — home to low horsepower tractors often used in dairy farming — posted a 12% rise in quarterly net sales as demand was aided by improving milk and beef prices.
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."
