Deere & Company (NYSE: DE) raised the lower end of its fiscal 2026 net income forecast, narrowing the range to $4.75 billion to $5 billion from $4.5 billion to $5 billion after reporting third-quarter net income of $1.379 billion, or $5.10 per share, for the period ended August 2, 2026. The quarterly figure was up from net income of $1.289 billion, or $4.75 per share, in the prior-year quarter.
The Moline, Illinois-based equipment manufacturer issued the improved guidance as the global agricultural equipment sector continues to move through a cyclical downturn. Deere cited stable demand conditions in the United States but softer market environments in Brazil and Europe, where reduced farmer spending has weighed on equipment purchases.
Deere competes globally with AGCO Corporation and CNH Industrial in large agricultural and construction equipment. The agricultural equipment cycle is shaped by farm income, crop prices, and the age of the existing fleet, and the industry has faced declining capital expenditure from farmers alongside falling commodity prices.
#Third-Quarter Revenue Rises 5% to $12.6 Billion
Worldwide net sales and revenues increased 5% to $12.608 billion in the third quarter. Net sales for the period totaled $10.999 billion, up from $10.357 billion a year earlier.
For the first nine months of fiscal 2026, worldwide net sales and revenues rose 7% to $35.589 billion. Net sales for the nine-month period were $30.779 billion, compared with $28.338 billion a year ago.
Nine-month net income declined to $3.808 billion, or $14.06 per share, from $3.962 billion, or $14.57 per share, in the prior-year period. Revenue grew on a nine-month basis while earnings declined.
"Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio," John C. May, chairman and chief executive officer, said in the earnings release.
May attributed the performance to stable U.S. market conditions and the company's ability to manage weaker demand in Brazil and Europe.
#Management Characterizes Fiscal 2026 as Ag Cycle Trough
May said the company continues to believe fiscal 2026 will mark the bottom of the current agricultural equipment cycle. Early order program trends, improving used-equipment inventories, and increasing customer adoption of Deere's technology offerings were cited as supporting factors, according to the release.
Deere manufactures and distributes agricultural, construction, and forestry equipment, with operations spanning the Americas, Europe, Asia, and Africa. The company also operates John Deere Financial, a unit that provides equipment financing and leasing services.
A sharper way to see the markets in just 5 minutes.
Same news, different lens. We cut through the noise and hand you the overlooked ideas and the deeper read the crowd misses. Join 38,000+ investors seeing the markets differently.
#Improved Outlook Carries Cyclical and Trade Risks
The revised forecast of $4.75 billion to $5 billion in full-year net income raises the lower end of the company's previous $4.5 billion-to-$5 billion range. Deere's financial results remain subject to the agricultural business cycle, commodity price fluctuations, and macroeconomic conditions including interest rate volatility, the company stated.
Trade policy uncertainty, including the potential impact of U.S. tariffs and retaliatory measures from trading partners, was listed among the company's risk factors. Conditions in Brazil and Europe, which Deere described as softer, represent ongoing headwinds for its international operations.
Management expressed confidence in Deere's positioning as market conditions improve.