Deere & Company (DE) Earnings Date & Reports

Key Takeaways

• Worldwide net sales and revenues rose 5% year over year to $12.608 billion in the fiscal third quarter ended August 2, 2026.
• Diluted earnings per share came in at $5.10, beating the consensus estimate of $4.79 by roughly 6.5%.
• Strength in Construction & Forestry (up 18%) and Small Ag & Turf (up 12%) offset a 6% decline in Production & Precision Agriculture.
• Deere raised its full-year fiscal 2026 net income outlook to a range of $4.75 billion to $5.00 billion.
• Shares gained about 7% following the report as investors weighed early signs of a stabilizing agriculture cycle.

Earnings Context and Why It Matters

Deere & Company, one of the world's largest manufacturers of agricultural, construction, and forestry equipment, reported third-quarter fiscal 2026 results on August 20, 2026. The quarter matters because it offers a read on whether the prolonged downturn in large agricultural equipment is finally bottoming. With farm profitability under pressure from elevated input costs and commodity price volatility, investors have been watching Deere's order trends, used-equipment inventories, and precision-agriculture technology adoption for signals of a cyclical turn. At the same time, resilient construction demand tied to infrastructure and data-center projects has become an increasingly important offset, making this report a key gauge of the company's diversified portfolio.

Reported Results

Deere reported worldwide net sales and revenues of $12.608 billion for the third quarter of fiscal 2026, up 5% from $12.018 billion in the prior-year period. Net sales from equipment operations rose 6% to $10.999 billion, exceeding the Zacks Consensus Estimate of $10.81 billion. Net income attributable to Deere & Company was $1.379 billion, or $5.10 per diluted share, compared with $1.289 billion, or $4.75 per diluted share, a year earlier. The bottom line beat the consensus estimate of $4.79 per share by about 6.5%.

Segment results were mixed. Production & Precision Agriculture net sales fell 6% to $3.998 billion, with operating profit down 9% to $527 million. Small Ag & Turf net sales climbed 12% to $3.383 billion, lifting operating profit 28% to $622 million. Construction & Forestry net sales jumped 18% to $3.618 billion, with operating profit surging 84% to $436 million. Financial Services net income rose 7% to $219 million.

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Market Reaction and Investor Sentiment

Shares of Deere rose about 7% in the session following the report, trading near $622 per share as investors responded to the earnings beat and the raised full-year outlook. The market's positive reaction reflected relief that the company's diversified businesses — particularly Construction & Forestry and Small Ag & Turf — are compensating for continued softness in large agriculture. Sentiment was also supported by management's commentary that early order programs are running up mid-single digits year over year and that used-equipment inventories are improving, factors investors read as early confirmation that the agriculture equipment cycle may be nearing a bottom.

Forward Outlook and Key Factors to Monitor

Deere raised its fiscal 2026 net income forecast to $4.75 billion to $5.00 billion, up from a prior range of $4.5 billion to $5.0 billion, and now expects $5.0 billion to $5.5 billion in equipment operations net operating cash flow. The company continues to view 2026 as the bottom of the current agriculture equipment cycle.

Several factors will shape the quarters ahead. Tariff exposure remains a meaningful headwind, with roughly $1.1 billion in direct tariff expense expected in fiscal 2026 and a net tariff run-rate near $1.0 billion anticipated for fiscal 2027. Meanwhile, segment trends point in different directions: Production & Precision Ag full-year sales are now expected to decline approximately 10%, while Construction & Forestry sales are guided up about 20%.

Investors will also be watching precision-agriculture adoption, including expansion of the company's See & Spray technology and next-generation planter options, as well as regional demand in South America and Europe, where farm economics remain pressured. These dynamics, alongside cost discipline and pricing, will be central to how Deere navigates the transition toward what management expects to be a gradual, rather than sharp, industry recovery.

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