Deere Shares Jump 7% After Q3 Earnings Beat and Raised Full-Year Guidance

Deere and Company posted fiscal third-quarter net income of $1.379 billion, or $5.10 per diluted share, up from $4.75 a year earlier and well above the analyst consensus of roughly $4.71, marking the company's first year-over-year profit gain in approximately three years. Total net sales and revenues rose 5% to $12.61 billion, surpassing estimates near $10.81 billion. The construction and forestry segment was the primary engine: 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 in part by demand tied to AI-related infrastructure build-out.

Small Agriculture and Turf also contributed, with sales up 12% to $3.38 billion and operating profit rising 28% to $622 million, improving the segment margin to 18.4% from 16.0%. Production and Precision Agriculture, representing the large-farm-equipment market, remained a soft spot, with revenues declining 6% to $4.00 billion. Deere recorded $110 million in tariff recoveries in the quarter, spread across production costs in multiple segments.

Total operating profit rose 18.4% to $1.856 billion. The company raised the low end of its full-year FY2026 net income guidance to $4.75 billion from $4.5 billion, keeping the ceiling at $5.0 billion. CEO John C.

May described 2026 as the structural trough of the agricultural equipment cycle, citing stabilizing early-order programs, clearing used-equipment inventories, and broadening technology adoption as indicators of a more pronounced recovery in 2027. Shares gained 7.1% to $621.93, on track for their best single-session performance since February, and ranked among the top S&P 500 gainers on the day.