Deere & Co. raised its full-year 2026 net income forecast after reporting higher quarterly profit, supported by stronger construction equipment demand and a $110 million tariff refund. Revenue increased 6% to $11 billion, while the company's construction and forestry segment recorded an 18% increase in quarterly sales.
Deere & Co., the world's largest agricultural equipment manufacturer, raised its 2026 net income forecast on Thursday after reporting its first quarterly profit increase in three years, helped by stronger construction equipment demand and a $110 million refund of tariffs.
The company expects full-year 2026 net income of $4.75 billion to $5 billion, compared with its previous forecast of $4.5 billion to $5 billion. The midpoint of the revised range is broadly in line with Wall Street expectations, according to Reuters.
Deere's quarterly performance was supported by growing demand for construction equipment as infrastructure investment and the expansion of data centers increase demand for machinery used in large-scale projects.
The company's Construction and Forestry segment was its fastest-growing business during the quarter, with net sales rising 18% from a year earlier.
The stronger construction market has helped offset continued weakness in Deere's core agricultural equipment business. Sales in the company's Production & Precision Agriculture segment fell 6% from a year earlier as farmers continued to face pressure from weaker commodity prices and challenging agricultural economics.
Deere CEO John C. May said the company continues to believe that 2026 will mark the bottom of the current agricultural equipment cycle.
The company's Small Agriculture and Turf segment also performed strongly, with net sales increasing 12%, supported by improving milk and beef prices.
For the quarter, Deere reported earnings of $5.10 per share, up from $4.75 a year earlier and above analysts' expectations of $4.70, according to LSEG data.
Total revenue rose 6% to $11 billion, exceeding the $10.73 billion expected by analysts.
The company also recorded a $110 million tariff refund during the quarter, providing an additional benefit to its results.
Despite the improvement, Deere continues to face uncertainty in its agricultural equipment business. Lower commodity prices are limiting farmers' ability to increase spending on major machinery, while competitive pricing could further pressure manufacturers.
Deere's shares rose 2.7% in premarket trading following the results.
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