Deere Raises Full-Year Net Income Forecast After AI Construction Boom Drives First Quarterly Profit Gain in Three Years

Deere and Company lifted the low end of its fiscal 2026 net income guidance to $4.75 billion from $4.5 billion, keeping the top end at $5 billion, after reporting third-quarter results that beat estimates and marked the company's first year-over-year profit increase in roughly three years. Net income for the quarter ended August 2 came in at $1.379 billion, or $5.10 per diluted share, up from $4.75 per share a year earlier. Total net sales and revenues rose 5% to $12.61 billion.

The construction and forestry segment was the primary driver: net sales climbed 18% to $3.62 billion and operating profit surged 84% to $436 million, with the operating margin expanding to 12.1% from 7.7%, fueled by booming demand tied to AI-related infrastructure construction. Large-farm-equipment markets remained soft, with Deere's full-year industry outlook calling for U.S. and Canadian large agriculture volumes to fall 15% to 20%, though the company affirmed its view that 2026 represents the bottom of the current agricultural downcycle. CEO John C.

May cited improving used-equipment inventories, strong early order program trends, and growing customer adoption of advanced technologies as reasons for confidence in Deere's positioning. Shares jumped on the news.