Deere raises 2026 profit view as AI construction boom lifts quarterly income, shares jump

The John Deere tractor manufacturer now 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 forecast is in line with Wall Street expectations.

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

The company also recorded a tariff refund of $110 million during the quarter, but expects net tariff costs of about $750 million in 2026 and about $1 billion in 2027, according to finance chief Brent Norwood.

Deere's profit per share came in at $5.10 for the quarter, up from $4.75 per share a year earlier and above analysts' estimates of $4.70 per share, according to data compiled by LSEG.